Traders Market Weekly: Apple, OPEC and Short Squeezes

June 4 -10, 2023

FEAR NOT Brave Investors

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Summer loving

The Week That Was – What Lies Ahead?


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With the uneasiness from the diabolical negotiations around the US debt ceilings now lifted we saw markets continue to rally and optionality come off, the VIX tells much of the story. The deal? Leaving essentially no debt ceiling until after the next Presidential elections, its a great game they have going in Washington.

The week saw a mixture of strong and weak data which had Fed speakers going from Hawkish, to dovish depending on the day, ahead of the FOMC blackout. The report that mattered was Friday’s U.S. labor market report which was contradictory to what economists tell us (don’t get us started). The report showed the job market’s continued resilience, adding more jobs than expected in May. There were 339,000 Nonfarm Payroll jobs added, ahead of the consensus estimate for 190K.

At the same time the unemployment rate rose to 3.7% vs 3.5% expected and highest since October 2022. Average Hourly Earnings (Y/Y) fell to 4.3% from 4.4%. The strength in NFP will help alleviate concerns about the economy suffering a hard landing, while a jump in unemployment rate & fall in average hourly earnings growth y/y should sooth some (certainly not all) of Fed’s concerns about tightness of labor market and wage-push inflation.

Markets in response liked what they saw, much of it was relief and the AI pump has spread across tech and led to forced buying from short covering and the only longs effectively short. This rallies laggard, The Dow led the major averages higher, gaining 2.12% to close at 33,762.76 points, it’s best intraday performance since early January. The S&P 500 hit a multi-month high to close at 4,282.37 points. The Nasdaq Composite settled at 13,240.77 points, pushed by a surge in shares of Lululemon Athletica (LULU) and Zscaler (ZS) after strong quarterly results. The notable there was they were up separate from AI. All 11 S&P sectors ended up Friday.

Big moves in commodities; CME Lean Hog futures soared almost 13% this week, a strong rebound tumbling to contract lows as excess supplies and weak demand for U.S. pork had fueled losses for six consecutive sessions the prior week. Orange Juice (FCOJ) gave back 4% after it’s spectacular 13.48% jump the week prior on the USDA crop forecast.

Deja Vu for natural gas, benchmark Henry Hub futures fell almost 10% after slumping 6% the week prior. Both gold and silver ran showed some life, rising just over 1% influenced by the US dollar pulling back on yields. The Bloomberg Commodities Index fell 0.3% (down 11.5% y-t-d) Oil prices have rallied since the large build in US crude with eyes focused on the OPEC+ weekend meeting, with traders reacting to OPEC rumors of production cuts.

When Markets Get Short Behind the Curve

Global stocks have continued to climb the wall of worry in 2023, with what has become a series of saves from the brink of economic disaster in a political episode worthy of the best Monty Python minds. The end result has left many investors over insured at times as we have been focusing on with option saturation, short bets and long only investors out of the market. The latter in a rising market essentially makes them short. This background is not new we have seen it many times over the last 20 to 30 years. The difference here is the sheer weight of money in the system and the introduction of shorter dated options and so many playing it.

Speculators and hedge funds have put on the largest short positions in the S&P 500 since 2007 according to Bespoke Investment Group using CFTC data n measured as a percentage of open futures-market interest.

At the same time, they have bet long on the Nasdaq-100, with net bullish plays in recent weeks nearing the highest levels since late last year, remember that. Markets go where the most pain is. The move, in a world where averaging your position is seen as trading has fueled larger positions. Anyone understand the martingale principle?

Fed Assets expanded $364 billion over three weeks in March in banking crisis liquidity operations (the market has a short memory that was only 8 weeks ago and helped create bigger shorts out there). Assets remain about $45 billion above the March 1st level. FHLB assets expanded an unprecedented $317 billion during Q1 ($802bn over 4 quarters). Indicative of the liquidity surge, money market fund assets inflated $384 billion in the five weeks beginning March 8th. In affect we got a massive boost a surge in financial sector Credit with those FHLB money market borrowings to finance its massive banking liquidity support operations.

On top of that money fund assets were up another $31 billion last week, despite risk embracement and record equity fund inflows. These factors have not been grasped by many. Again, why we say watch Bonds and Foreign Exchange they will tell you the answers first. Now throw on top the artificial intelligence mania with record amounts of money flowing into tech stocks. Tech funds attracting an all-time high of $8.5 billion in the week through May 31, according to EPFR Global data.

The defense of the shorts is that disaster is coming any minute or the S&P500 would be down if it wasn’t for tech Mega caps. Shares of the 10 largest companies in the S&P 500 climbed 8.9%, while the other 490 fell 4.3%, according to Bespoke. The index as a whole was just up 0.2%.

That’s all well and good the trouble it is up, and substantially and the cost of carry is around 6-12% not 0-2% from last year. Trading from the short side is about timing, recognition and as they say strike like a cobra. The demise of the Californian and New York Regional Banks was a prime example, they were on the radar and once the cracks appeared, go hard, go fast.

Where are the Shorts Trapped at?

There is two ways of looking at this the bears and the dribblers out there argue it all has to come down. The rationale being the S&P 500 is up 12% this year, however it would be negative without the contribution of seven big tech companies. The argument is should any of those plunges then we are back to bringing it all down. The problem is it has gone up, look at the AAPL and NVDA for just two names.

JATS distribution indicators show us where the bulk of the shorts are trapped at, note the range inflexions (bottom oscillator) versus market lows. This latest rally has climbed on a smaller low volatility range – meaning climbing the wall of worry which traps shorts. Note the December and March Lows time and price confluences (white lines) at JATS PT1 higher time frame distributions.

Short interest in the S&P 500 is $487 billion, though that is down from a peak of $558 billion in November 2021, according to S3 Partners.

Big tech stocks shorts are huge, increasing $3.57 billion to their short positions against Tesla, $2.5 billion against Nvidia and $7.26 billion against Facebook parent Meta Platforms, S3 Partners data show. All three stocks rallied in May, leaving short sellers with more than $7 billion in losses.

Many Have Been Long Energy, Short Tech – June 2 23 YTD shows that is one of the worse positions in stocks.

This move has crept up on many, to the extent the S&P 500’s is nearing the traditional measurement of a a new bull market typically measured as a 20% gain from a significant low. The index settled Friday at 4282.37, a close at or above 4292.438 gets that 20% move. That would end the longest bear market since 1948. The S&P 500 and the Nasdaq-100, with its 33% year-to-date gain, are testing one-year highs. The DAX and CAC40 have seen all-time highs recently also.

We have opined the stock market is now taking the Fed raising as a sign of a strong economy, as such the stock market was not deterred by rising expectations of a 25-basis points rate hike at the June FOMC meeting two weeks ago. The probability of a 25-basis points rate hike at the June meeting plunged to 25.6% Friday, according to the CME FedWatch Tool after the jobs report. Still, Fed officials continue to signal that more rate hikes may be needed. the fed funds futures market, at least 75% expect the fed funds rate range to remain at 5.00-5.25% after the June meeting, but the implied likelihood of a rate hike in July rose to 69.4% from 54.0% yesterday.

Still much comes down to how the Treasury refunds the U.S. cash position, keep your eyes on the road!

Global Debt Monitor

Highlights Unprecedented and Ongoing Surge in Global Debt

Last week, the Institute of International Finance (IIF) released their Q1 2023 Global Debt Monitor (GDM), highlighting the unprecedented – and ongoing – surge in global debt.

GDM Highlights:

  • “The global debt stock grew by $8.3 trillion to a near-record $305 trillion in Q123; the combination of high debt levels and rising interest rates has pushed up debt service costs, prompting concerns about leverage in the financial system.”
  • “Total debt of emerging markets hit a fresh record high of over $100 trillion (or 250% of GDP) – up from $75 trillion in 2019.”
  • “At close to $305 trillion, global debt is now $45 trillion higher than its pre-pandemic level and is expected to continue increasing rapidly.”
  • “Rise of private debt markets: Non-bank financial institutions (NBFLs) continue to gain prominence in global credit intermediation. The so-called ‘shadow banks’ now account for more than 14% of financial markets, with the majority of growth stemming from a rapid expansion of U.S. investment and private debt markets.”
  • “The Size of Private Debt Markets Surpassed $2.1 Trillion in 2022, Up From Less Than $0.1 Trillion in 2007.”

From the end of Q3 2019 through Q1 2023, Total Global Debt jumped $52.3 TN, or 20.7%, to $305 TN.

Over this period, “Mature” economy debt expanded 13.4%, while “Emerging” economy debt surged 38.9%. It’s worth nothing that in the “Emerging” category, “Household” debt surged 41.7%, “Non-Financial Corporate” 35.1%, and “Government” 55.7%. Since 2016, total global debt-to-GDP has surged from 210% to 360%. Global financial conditions remain loose. When they inevitably tighten, be prepared for serious dislocation.

How is the Consumer Hanging?

The US relies on services for up to 90% of GDP. it relies on the consumer who is being battered by the California and New York regional bank debacle. On top of that is cumbersome if not ignorant politicians, with no clear regard for main street the evidence suggests in their behavior.

For a clearer look with earnings reports from key retailers Lowes (LOW), Best Buy (BBY), Costco (COST), Abercrombie & Fitch (ANF), American Eagle Outfitters (AEO), Dick’s Sporting Goods (DKS), Urban Outfitters (URBN), Big Lots’ (BIG), Kohl’s (KSS) and Dollar Tree’s (DLTR). They all gave a cautionary note with tightened household budgets continue to hit demand for big-ticket items and curb discretionary spending.

We get more earnings from retail companies next week including Macy’s (M) and Lululemon (LULU).

Where is the fear?

We got some movement this past week out of the tight range in markets but as we can see from the VIX chart it quickly reverted back after the initial breaks. We are aware of built-up energy ahead of key central bank decisions from this week and potential fundamentals to set-up rate hikes or not. There is discontent globally with central Banks.

With optionality dominating markets along with quant funds, algorithms, systematic trading and automated trading volatility has collapsed as has been focused on at KnovaWave. The S&P 500 has moved less than 1% in either direction for 36 of the last 46 sessions, according to Dow Jones Market Data, the quietest 46-day stretch since December 2021. This in a period of a regional bank crisis and debt ceiling crisis. These systems have no emotion and trade accordingly.

Driving quant funds is a self-reinforcing dynamic, when market volatility drops, they add which causes those funds that have paid higher volatility to cover and hence we get the churn. At the end of March, quant-focused hedge funds held about $1.13 trillion in assets, according to research firm HFR, hovering just below last year’s record high. That represents about 29% of all hedge-fund assets.

To break out of this requires a continuing break in a major down, or up move to ignite delta chasing or covering.

So-called vol-control and risk-parity funds, which tend to automatically load up on riskier assets during calmer periods, ramped up equity exposure, according to the Deutsche Bank data, available through May 18. Other quants, such as trend-following CTAs, or commodity trading advisers, have similarly piled in.

The dominance of quants has helped explain previous periods of calm trading, including long stretches in 2017 and 2018. Those periods were punctured by rapid selloffs, including the 2018 selloff dubbed “Volmageddon” when the dynamics exerting calm on the market suddenly went away. Some warn a repeat could be ahead.

Caitlin McCabe WSJ

A point well made over at Scotiabank we follow over the past month which helps explain price action. There is a difference between marking down risk appetite within functioning markets—which is happening—versus widespread market dysfunction that can be destabilizing or lead to outright dysfunction—which is not happening to this point.

Corporate bond spreads offer a similar picture as cyclical risk gets repriced. Investment-grade corporate bond bid-ask spreads and high-yield bid-ask spreads indicate still functioning markets. Equity market volatility remains relatively low.

Talking about manic behavior it is not hard to argue the punter is overwhelming and influencing markets like no other time, well until the next time.

When the VIX is highly reactive, VIX related products can serve as potentially effective hedging tools, when the VIX is not very reactive, traditional hedging techniques may be a better choice.

The VOLX`s underlying instrument is the Mini VIX™ Future. The CBOE Volatility Index (VIX) is an up-to-the-minute market estimate of expected volatility. The VIX is calculated using a formula to derive expected volatility by averaging the weighted prices of out-of-the-money puts and calls (options) on the S&P 500.

Ahead is Deja Vu: Service Data, Trade, OPEC BOC and RBA

Eyes will be on top macroeconomic reports that will emphasize the health of the US and global economies. Eyes and ears will be on central bankers given the market turmoil and the hiking of rates.

We start off with the OPEC+ meeting Sunday evening from there this week will place much of the focus upon economic data for the service sector, trade deficit, and jobless claims in the US, with the ISM services index expected to show improvement. We get a fresh look at U.S. service-sector activity with the Monday release of the Institute for Supply Management index for May, along with insight into the April trade deficit on Wednesday.

How Hot is the American Economy?

More Macro and Micro data points, some highlights include:

  • Monday: US factory orders, ISM services
  • Tuesday:
  • Wednesday: Weekly MBA Mortgage, US trade, weekly oil inventories, consumer credit
  • Thursday: US wholesale inventories, Weekly Initial and Continuing jobless claims, and weekly natural gas inventories.
  • Friday:

Swirling greed and know it all came home to roost. FOMO (fear of missing out) and TINA (there is no alternative) ended how they always do.

Earnings season continues with earnings from technology and retail companies including HP (HPQ), Salesforce (CRM), Okta (OKTA), C3a.i. (AI), Dell (DELL), Macy’s (M) and Lululemon (LULU) report quarterly results.

Click here to see the Full Week Ahead List Below

A reminder in these markets don’t get married to a view, leave biased partisan opinions at the door and find a leader. Right now, NVDA is giving us a good indicator of crowd behavior. Note the divergence and convergence with it and other instruments. Be proactive.

Worth repeating again in the low VIX environment.

Well, 2008 redux didn’t happen in the last few months, so the Fed moves have worked for now, much to Xi and Putin’s chagrin.

The doomsayers may be right, but we are seeing constant surprises to that theory. For example, early signs that the US housing market slump is finding a base are emerging, pending home sales having risen for a third month and to a 6-month high. we will keep an eye on consumer sentiment and business activity. We are far from being out of the woods, remember the market is not the economy. Saying that we got quite the distorted job picture per our main job stories which wee reprise below. Are we simply taking some air out or is the beginning of the great meltdown?

What we continue to notice is how this market is still being treated by ‘experts’ as those in the past, hence the volatility and extreme in bulls/bears. Understanding crowd behavior is essential in these markets. The moves have caught analysts and strategists by surprise with the uber bear running amok in the past few weeks. Typical thinking is this from Morgan Stanley strategists; “Given the events of the past few weeks, we think … equity markets are at greater risk of pricing in much lower estimates”, noting that earnings estimates were 15-20% too high even “before the recent banking events.”

What non-traders are failing to grasp is this market with so many variables is not trading as they expect and they are constantly wrong. S&P 500 earnings for the first quarter are estimated to have fallen 5% from 2022, followed by an expected 3.9% drop in the second quarter, Refinitiv data shows. During recessions, however, earnings tumble at a 24% annual rate on average, according to Ned Davis Research. However how important is that in such a chaotic market? There is the answer structure your thinking around game theory or even chaos theory.

So how Screwed are We?

  • The banking system is on much greater Credit risk than mortgage risks were offloaded during the 2008 mortgage finance Bubble. At $25.6 TN, Banking System Assets ended 2022 almost double the 2007 level.
  • Financial Sector debt growth jumped to a 9.66% rate last year, the strongest since 2007’s 13.50% Z.1 data showed. Now we are looking at this given the quick demise of regional banks and the concerns of the commercial structure. Why? we simple note a jump in Financial Sector borrowings signals a surge in risk intermediation. Is this fateful late-cycle intermediation gong to haunt the financial sector and economy when the Bubble bursts.
  • If it doesn’t burst well, we circle back to the popular view that Financial Sector debt included in analysis would be “double counting” borrowings already included elsewhere (i.e. mortgage and business). The swift end to backs, the shocking management out there and geopolitical cold war out there has us ready to expect the unexpected and aware of moves to mitigate by Central banks as we saw a few weeks ago.
  • GSE Assets expanded an unprecedented $2.094 TN, or 29.4%, over the past three years to a record $9.224 TN. FHLB Assets surged $524 billion, or 72%, in 2022, with indications for Q1 growth upwards of (yes) $400 billion.
  • FHLB plays a pivotal role, last year prolonging the lending boom and last month stabilizing bank liquidity.

The Credit cycle downturn is coming to the surface.

We have the reflective destabilizing Monetary Disorder. Take a peek at China and the markets collective cognitive dissonance to the property market there, the shadow banking as just one example. Have a look around the world. The hope is the collective mass continues to evolve and survive, while each time the destruction is evident in massive disproportion shifts of wealth and attempts of mind, if not physical control of the masses. Dial that back and try and get in the minds of those trying to right the ship and the market components that matter, not what the dribblers think matter.

Here’s a thought, knowing about the power of cognitive dissonance does not necessarily protect you from its effects. Traders are only too aware of this eureka moment when you grasp it. Why some of the best trades you ever do, are the ones you don’t. In option parlance, being delta neutral sometimes is the best trade.

Key this coming week will be the commencement of the next round of such indicators that will test whether these gains were one-offs or something that is sustainable. The key will be the extent to which downside risks to the US economy have been reduced enough to influence global central banks, and how markets react.

Some things never change, when you think Greed is Good

Annualizing the New York Fed’s Q4 household borrowing data, Credit card debt expanded at a 26% pace and total debt at a 9.5% rate during the quarter. The Fed’s aggressive tightening cycle has had little affect on loose financial conditions.

Where to from here? It’s also okay to acknowledge and process any difficult emotions or experiences that you may have had during the past year. Looking back on the past year with perspective can help you to gain a greater understanding of what you have been through and how you have coped. I hope that you are able to find ways to manage any challenges that come your way and that you continue to feel fine moving forward. Embrace the chaos that is headed your way in 2023!

China; Behind the Iron Curtain

A big shift in 2022, China’s population is now falling and below that of India. China’s population fell for the first time since 1961 as births have steadily fallen in recent years despite the removal of the “one child policy”. The stalling working age population and its likely decline ahead means that potential growth in China is down from around 10% or so in the 2000s to around 4-5% now.

Growth in China’s metric of system Credit growth, Aggregate Financing, dropped to $175 billion, down significantly from March’s $773 billion and only 61% of estimates. It was also the weakest monthly growth since last October.

“China is warning domestic brokerages not to spread information that compromises national security, reinforcing a campaign that has roiled consulting firms and providers of financial data.”

  • “Financial stress faced by China’s local governments is limiting fiscal support for the economy’s recovery, with half of cities experiencing difficulty in managing the interest payments on their debt last year. That’s according to a report by Rhodium Group researchers, who examined annual reports from 205 Chinese cities and nearly 3,000 local government financing vehicles, or LGFVs, the state-owned companies that carry out infrastructure investment. Half of cities faced debt service costs above 10% of their total income, a threshold the researchers see as indicating difficulty managing debt servicing costs. That’s up from a third in 2021.” June 2 – Bloomberg (Tom Hancock)
  • “China’s cash-strapped local governments have suddenly rushed to an unusual corner of the debt market in Shanghai where ambiguous rules offer ways to skirt restrictions on onshore borrowing. Some analysts have described local government financing vehicles (LGFVs) as the ‘black hole’ of China’s financial system, with debts of more than $9 trillion and rising. But Beijing is counting on their continued spending to help lift a patchy economic recovery. Sales by LGFVs of so-called ‘pearl bonds’, which are issued as foreign debt in Shanghai’s free trade zone, have soared to a record 72 billion yuan ($10bn) so far this year… – nearly double last year’s total.” May 31 – Reuters (Georgina Lee and Tom Westbrook)

The Market Tripod of Destruction.

  • Firstly, financial asset overvaluation has swung way past any sound underlying economic wealth structure.
  • Secondly over-leverage in crowded bets.
  • Thirdly we have greed enthused, as always in these cycles, risk engineering, transfer and management that ignores or understands bifurcation and contagion outcomes.

Leverage has become toxic, a development that if not addressed will have deep and with far-reaching sequels. It’s not too farfetched to suggest that the markets are on the verge of a rupture that would be difficult to contain. Should the crisis of confidence dynamics that hit Britain feed into other markets a powerful global contagion could be unleashed. The markets are dislocated, and financial stability is at risk. A sobering thought is the UK is just the initial first world pension system in this cycle facing the harsh reality of a steep devaluation of assets and the prospect of widespread insolvencies and debilitating negative sentiment.

Inflation Matters

Inflation with Henry Kaufman

Kaufman is the legendary chief economist and head of bond market research at Salomon Brothers is someone who knows Inflation.  Henry Kaufman in an interview with Bloomberg’s Erik Schatzker Jan 14, 2022:

 “I don’t think this Federal Reserve and this leadership has the stamina to act decisively. They’ll act incrementally. In order to turn the market around to a more non-inflationary attitude, you have to shock the market. You can’t raise interest rates bit-by-bit.”

“The longer the Fed takes to tackle a high rate of inflation, the more inflationary psychology is embedded in the private sector — and the more it will have to shock the system.”

“‘It’s dangerous to use the word transitory,’ Kaufman said. ‘The minute you say transitory, it means you’re willing to tolerate some inflation.’ That, he said, undermines the Fed’s role of maintaining economic and financial stability to achieve ‘reasonable non-inflationary growth.’”

Independence – Never Take It for Granted Traders

“In aggregate, the market goes from order to disorder, and on that journey little pockets of order can form, including in commodities, bonds, stocks, currencies that circle back and reorder disorder. Then there is us the market player that reflects through order and disorder in an ever-evolving loop towards independence. It all starts with gravity and ends with equilibrium and back we go.” KnovaWave “The rules of market flux”

The Fed has kicked off its first real tightening campaign since 1994, with securities markets already at the brink of illiquidity and dislocation. Markets could soon be screaming for assurances of the Fed’s “buyer of last resort” liquidity backstop, while the Fed is prepared to begin withdrawing liquidity by selling Treasuries and MBS.

Another important aspect is the Fed doesn’t Control corporate pricing or wage decisions. Let us be clear geopolitical, climate change developments and what an out of depth, politically motivated administration are outside the Fed’s sphere of influence. There has been over $5.1 Trillion new “money” in 126 weeks, it’s a reasonable conclusion the Fed has lost control of Inflation.

We need to grasp all the risks to be wary off and received plenty of flak from it. We always talk here about expect the unexpected and now that is front and center, gage the market’s reaction, the market is always right and that’s why we focused on the crowd psychology aspect over the past few weeks.

“We have a market trying to interpret the Fed who is trying to find out how they can interpret their long-only portfolio at a risk parity where rates cannot rise.”

– MoneyNeverSleeps

Cboe Daily Market Statistics

Cboe Daily Market Statistics

Our weekly reminder for risk. The downside is clear with the absence of moral hazard from repeated Federal Reserve market bailouts in an environment of some would say obscene liquidity pumps. Pure greed is the other part, not wanting to miss out on fees. The obvious question is, how deeply ingrained is this attitude through the markets? How do we ween the markets off this continuous dip feed? At this point the Central Banks have kicked that answer down the road.

Part A – Stock Markets

Weekly Highlights – USA


  • S&P500 rose 1.8% (up 11.5% y-t-d),
  • Dow gained 2.0% (up 1.9%).
  • S&P 400 Midcaps rose 2.6% (up 3.1%)
  • Small cap Russell 2000 jumped 3.3% (up 4.0%).
  • Nasdaq100 gained 1.7% (up 33.0%). T
Major US Stock Indices


  • Utilities increased 0.8% (down 9.2%).
  • Banks surged 3.1% (down 20.4%),
  • Broker/Dealers gained 1.5% (up 1.0%).
  • Transports advanced 1.8% (up 5.7%).
  • Semiconductors declined 1.2% (up 38.3%)
  • Biotechs rose 1.5% (up 1.7%).
  • With bullion up $1.50, the HUI gold equities index jumped 2.5% (up 7.0%).

Biggest SPX Stock Winners and Losers Last Week

Major US Indices

Global Stock Market Highlights

Highlights – Europe Stocks


  • U.K.’s FTSE equities index slipped 0.3% (up 2.1% y-t-d).
  • France’s CAC40 declined 0.7% (up 12.3%).
  • German DAX equities index added 0.4% (up 15.3%).
  • Spain’s IBEX 35 equities index gained 1.4% (up 13.2%).
  • Italy’s FTSE MIB index increased 1.3% (up 14.2%).

Germany’s benchmark Blue Chip DAX 30 index (Deutscher Aktienindex) expanded to 40 companies on 20 September, 2021 adding 10 new members to the German stock index from the MDAX which will be reduced from 60 to 50 members.

Highlights – Asia Stocks


  • Japan’s Nikkei Equities Index rose 2.0% (up 20.8% y-t-d)
  • South Korea’s Kospi index rose 1.7% (up 16.3%).
  • India’s Sensex equities index was little changed (up 2.8%).
  • China’s Shanghai Exchange Index increased 0.5% (up 4.6%).

HighlightsAustralian Stocks

  • Australia’s S&P/ASX 200: Friday+0.5% to 7145.1 (-0.1% for the week)
  • Friday Iron ore futures for delivery in July on the Singapore exchange rose 1.3% to $US103.45. BHP Group rose 2.8% to $43.25. Rio Tinto rose 2.5% to $110.15 and Fortescue Metals rose 1.7% to $19.69.
  • Top Stocks this week: De Grey Mining +10.04% Capricorn Metals +10.02%
  • Worse Stocks this week: IDP Education -15.76% Sayona Mining -11.90%

Highlights – Emerging Markets Stocks


  • Brazil’s Bovespa index advanced 1.5% (up 2.6%)
  • Mexico’s Bolsa index fell 1.5% (up 9.8%)
  • Turkey’s Borsa Istanbul National 100 index surged 11.7% (down 7.2%).
  • Russia’s MICEX equities index gained 1.4% (up 26.2%).

Technical Analysis

S&P 500

Daily: The daily SPX closed again under the Key Spits roof under the 50% & August breakdown as it has coiled since the October Spit. We have energy and with a very low VIX it needs to get past the cloud twist to get through overhead otherwise this becomes a rising wedge. The market after spitting the 4100 and 38.2% retracement broke to capture the Tenkan. This underscores the power from the SPX spat of June & October lows with impulse through the tenkan and Kijun energized by the daily cloud twist that fueled this rally. The completive wave came off extreme fear and bear that ended with relief. Now we have sated much of the greed phase and short fear phase. We have completed that cycle and from here we measure the alternatives.

Tracing back from highs the fuel from the top of the channel after completing 3 waves off ATH, accelerated after broke the Tenkan through to the 4600 OI where it reversed with impulse back to Tenkan. Bulls, this is likely a (ii) of a 5. Bears this is 1-2 of (i) completive V of degree. We watch if this low was a (iii), (a) or C. We have to respect the number of alternatives of degree of 5. With such trends keep it simple resistance is Tenkan and Kijun and watch for ABC. From no fear to panic is the driving element.

On the downside the Kijun and those June lows now critical and is our trading Bear/Bull pivot in a high vol scenario. Watch each measured 3 wave move on the 240 & Murrey Math highlighted in the podcast. The prices pulled through the downward cloud pulled by the twist ‘helium contusion’ on the completive.

For fractal purposes, SPX completed 5 waves up where it reversed with impulse. Energy fueled from the power impulse down from +1/8 ATH spit of a spit fail. On the way down (just like up) it accelerated after it broke the Tenkan through the rejected Kijun and then through the median after tapping 8/8.

Daily S&P 500 3 waves

Weekly: The SPX closed over the cloud this week and with 8 sessions (weeks) above the Tenkan +1/8 we come into pivotal time, the VIX and outside events align with this. Eyes up traders! Key support is the 50wma Tenkan and +1/8. Power initially came from launching out of the sphere of influence as one would expect in a 3 or C. We had the Kijun spit also. Above is the channel and +2/8, above the weekly cloud is needed for cycle switching.

In the bigger picture we are playing out S&P 500 energy after it held the sphere of influence from Nov 2020 reversed higher after spitting the 38% and key lows. At the time we opined “We do have a weekly cloud twist; however, the energy is waning without sharp impulse.” We got the sharp impulse right to weekly Kijun. For major cycles we watch the S&P 500 over 4,231, the 50% retracement of losses from the Jan. 3 & June 16 close. Since 1950 there has never been a bear market rally that exceeded the 50% retracement then gone on to make new cycle lows. Is this time different, as we tested and spat those June lows?

On the way up each new high evolved after testing Tenkan key support on the way and we are now getting a retest as resistance. We reiterate this needs to be recovered for a resumption of the uptrend meanwhile the bear market plays out. Watch Tenkan this week and watch for Kijun reaction. Extensions are difficult to time, keep it simple.

S&P500 Weekly Outlook

THE KEY: Key for the impulse higher was the spit or retest of MM 8/8 and Tenkan San, which held with the previous highs and Tenkan.  To repeat “We look for 3 waves down and reactions to keep it simple with the alternatives in the daily.”  Keep an eye on the put/call ratio with recognition to the sheer size of contracts AND keep in mind the stimulus distortion. The spit per channel fractal and Adams rule launched back over the cloud where we were encased AND we are back testing it. Watch if a spit or clear break support as Chikou rebalances

A reminder that Apple Inc $AAPL, Microsoft Corp $MSFT, Inc $AMZN, Facebook Inc $FB, and Google-parent Alphabet Inc $GOOGL make up approximately 23% of the total weight of the S&P 500. With that comes gyrations that are an outsized impact on broader markets


The down move saw Nasdaq spit the weekly Kijun and a 1-2 off tenkan we spat MM 5/8 after holding the key 61.8% Fib. We watch the Tenkan & Kijun confluence above, the breakup level and between the 38/50 Fibs. The Nasdaq is well behind the S&P pace with the weekly cloud and 50wma well above. Support the 61.8% retest.

Recall ATH was after it broke and held the weekly Tenkan to see a spit of a spit fail which is completive of 5 of some degree with Chikou rebalancing. Watch Chikou for divergence for continuation or failure. Divergence with Russell also a clue.

NASDAQ Record Highs to 61.8% of impulsive

Dow Jones

The Dow led the indices and closed above the weekly Tenkan after closing and testing last week. Prior test after the reaction off the June lows and sphere of influence. Support is the channel and Fibs. Tenkan and Kijun after the reaction empowered. Support is the channel and Fibs.

Russell 2000

The small cap Russell RUT bounced in double bottom off 1600 5/8 confluence which was the Nov 2020 breakup. Russell 2000 Resistance Tenkan and Kijun, note previous rejections. This is the index showing more of the fast money crowd and is trading like it. Needs to get traction in here for bulls. 7/8 & 8/8 support collapsed on the way down and is now major resistance.

Russell Index Negative Divergence to NASDAQ


NVidia $NVDA

NVidia surged 90% in Q! 2023, and kept going after earnings. It has a textbook of KnovaWave methodology and rules from the 61.8% break and reverse through the sphere. NVDA accelerated after it broke the double top spheres at 5/8 giving is a near 4/8 move. A reminder that the dominance was in, The Philadelphia Semiconductor (SOX) Index returned 27.6% for the quarter, with the Nasdaq Computer Index up 25.7% and the NYSE Arca Technology Index gaining 26.1%. The Nasdaq100 (NDX) jumped 20.5%. NVDA took off after the breakup retest from May 2021. NVidia is a clear leader of SOX & SMH look for cues there and ABC failures for changes. NVDA never looked back after the Key Break (mauve) and Tenkan to a flat cloud and holding support the recent low at the 61.8% extension.

Nvidia NVDA stock chart

Apple $AAPL

Apple has consistently driven upwards after it held the sphere of influence after retesting 6/8 & break up. Kijun and Tenkan crossing and then the 50wma with the cloud twist have been magnetic. Apple & other mega-cap names dominant the major indices, and a plethora of funds that hold it as a core position. The Vanguard Mega-Cap Growth ETF (MGK) delta is important to watch.

Apple AAPL Stock Chart

A firm rejection at $175 at +2/8 triggered a waterfall down for Apple. On the way up Apple gently motored up to new ATH over the massive $160 then $170 thru to $180 gamma level on the way down these levels became key energy levels all the way to $132. Support held at the May break (just like NVDA) where from there it spat the cloud pulled by a flat Tenkan and Kijun as it rebalanced Chikou. The old channel break and MM 8/8 is now key. Remember the impact $AAPL has, at least short term on all the major indices.


The ARK Innovation ETF (ARKK) finally found some support at -1/8, 78% off highs and the 423.6% extension! The ARK Innovation ETF returned 29% for Q1 2023. The fund is filled with growth stocks and was the top-performing U.S. equity fund tracked by Morningstar in 2020, it has not been a pretty slide. For the quarter, Nasdaq Computer Index up 25.7% and the NYSE Arca Technology Index gaining 26.1%. The Nasdaq100 (NDX) jumped 20.5%.

The ARKK ETF trading clinically, tested triangle breakdown and failed off 50 WMA. Some work at support at 61.8% of whole move and then wrecked again. Clear crowd behavior, we saw ATH in NASDAQ & SPX, yet this couldn’t raise a bid – very telling negative divergence. $ARKK rebalanced Chikou at week’s end

Ark ARKK ETF Stock Chart

ExxonMobil XOM

ExxonMobil Weekly Chart

Part B: Bond Markets

Bond Watch


U.S. Treasuries ended the holiday-shortened week on a firmly lower note with shorter tenors leading the selling which reversed a good portion of this week’s gains. The bond market compressed the 2s10s spread by six basis points to -82 bps. The 2-yr note yield fell five basis points to 4.51% and the 10-yr note yield fell 11 basis points to 3.69%. Uncertainty about the debt ceiling finally eased after a deal was passed by both chambers of Congress.

The catalyst Friday was the Employment report for May, which saw the NFP crush expectations (actual 339,000; consensus 190,000) however at the same time average hourly earnings growth slowed to 4.3% y/y from 4.4% in April, and the unemployment rate increased by 30 basis points to 3.7%.

Treasury Yield Watch


  • 2-yr: +18 bps to 4.51% (-5 bps for the week)
  • 3-yr: +16 bps to 4.14% (-9 bps for the week)
  • 5-yr: +14 bps to 3.84% (-9 bps for the week)
  • 10-yr: +8 bps to 3.69% (-11 bps for the week)
  • 30-yr: +5 bps to 3.88% (-8 bps for the week)

For our complete Weekly Fixed Interest Analysis and Outlook visit our Bond Traders Weekly Outlook:

Mortgage Market

  • Freddie Mac 30-year fixed mortgage rates surged 25 bps to a six-month high 6.76% (up 166bps y-o-y).
  • Fifteen-year rates jumped 29 bps to 6.09% (up 178bps).
  • Five-year hybrid ARM rates spiked 29 bps to 6.28% (up 208bps) – the high since October 2008.
  • Bankrate’s survey of jumbo mortgage borrowing costs had 30-year fixed rates up 16 bps to 7.17% (up 193bps).
Mortgage News Daily

Part C: Commodities


  • The Bloomberg Commodities Index slipped 0.3% (down 11.5% y-t-d).
  • Spot Gold was little changed at $1,948 (up 6.8%).
  • Silver recovered 1.3% to $23.61 (down 1.5%).
  • WTI crude declined 93 cents, or 1.3%, to $71.74 (down 11%).
  • Gasoline sank 7.5% (up 2%)
  • Natural Gas sank 10.1% to $2.17 (down 52%).
  • Copper rallied 1.2% (down 2%).
  • Wheat increased 0.5% (down 22%),
  • Corn gained 0.8% (down 10%).
  • Bitcoin rose $500, or 1.9%, this week to $27,240 (up 64%).
Weekend May 26, 2023

Key Long Term Commodity Charts


Copper Supply Crunch


  • Gold had its first weekly gain after three consecutive declines, on par with the USD having it first decline in 4 weeks.
  • Front-month Comex gold for June delivery closed -1.3% Friday to $1,952.40/oz to cap a 0.4% gain for the holiday-shortened week,
  • Gold, and silver ETF holdings had outflows dominating with outflows from silver more extreme than in gold.

China raised its gold holdings by about 8.09 tons in April, according to data from the State Administration of Foreign Exchange. Total stockpiles now sit at about 2,076 tons, after China increased reserves by about 120 tons in the five months through March.

Gold in Perspective


For complete Oil and Natural Gas Coverage please visit our dedicated publications ‘Around the Barrel’ and ‘Into the Vortex.’ – Weekly Analysis and Outlook for Energy Traders and Investors


WTI Weekly KnovaWave Shape

Natural Gas

US Natural Gas KnovaWave Weekly Grid
Energy Market Closes

BDI Freight Index

Baltic Dry Index Weekly

For our complete Weekly Commodity Analysis and Outlook visit our Commodity Traders Weekly Outlook:

Charts and commentary via KnovaWave on:

  • Grains: Wheat, Corn, Soybeans
  • Metals: Copper, Aluminum
  • Precious Metals: Gold Silver
  • Lumber
  • Oil and Natural gas are covered separately (see below)

Part D: Forex Markets

John Maynard Keynes, 1920: “There is no subtler, no surer means of overturning the existing basis of society than to debauch the currency. The process engages all the hidden forces of economic law on the side of destruction and does it in a manner which not one man in a million is able to diagnose.”


  • For the week, the U.S. Dollar Index slipped 0.2% to 104.02 (up 0.5% y-t-d). 2022 gains were 8.2%
  • For the week on the upside, the South Korean won increased 1.5%, the Australian dollar 1.4%, the Canadian dollar 1.4%, the British pound 0.9%, the Brazilian real 0.7%, the South African rand 0.6%, the Norwegian krone 0.6%, the Japanese yen 0.5%, the Mexican peso 0.4%, the Swedish krona 0.4%, the New Zealand dollar 0.3%, and the Singapore dollar 0.1%.
  • On the downside, the Swiss franc declined 0.4% and the euro dipped 0.1%. The Chinese (onshore) renminbi declined 0.49% versus the dollar (down 2.82%).

Weekly Foreign Exchange Price Change

For our complete Forex Weekly Analysis and Outlook visit our Forex Traders Weekly Outlook:

Charts and commentary via KnovaWave on the US Dollar, Euro, Japanese Yen, British Pound, Euro Pound, Swiss Franc, Canadian Dollar, Australian Dollar, New Zealand Dollar, Turkish Lira, Mexican Peso. Currency dynamics are complex. There are myriad facets to analyze and contemplate that influence all markets.



Bitcoin continues to be plaything of levered speculators, this week we saw the markets turn against those short. An incredibly intense squeeze engulfed the Treasury market which flowed through to crypto. Intense squeeze dynamics also spurred a huge rally in crypto, with bitcoin surging a crazy 34%.

Where did this come from? Forced coverage from yield curve punts blowing up. Yen shorts and levered “carry trades” were at risk. JGB and European yields sank. Corporate spreads were blowing out, inflicting losses on levered corporate bond portfolios. Energy prices tanked. The favored (so called safe) financial stocks were collapsing, while the heavily shorted technology stocks rallied. For the week, the KBW Bank Index sank 14.6%, while the Nasdaq100 (NDX) jumped 5.8%.

It had been a churn following the FTX collapse. BTC had been stuck in the sphere of influence in continuation awaiting a catalyst, and it came. Continues to perform technically to perfection. Impulse begets impulse. To understand panic, understand greed. $BTC tested the top of a rising channel after the preceding sharp downturn which was the downside breakout of an earlier bearish flag, after breaking downside a H&S top and then down it went….

Recall Bitcoin exploded higher following it’s correction impulsively upon completing 5 waves up at +2/8. Each Tenkan and Kijun tap saw an explosive kiss of death until we completed 3 waves to around 28,000. From there we have seen extreme volatility.

Bitcoin KnovaWave Weekly Outlook

Looking back Bitcoin put in a high of $63,000 around Coinbase, the largest US crypto exchange successfully went public which signaled profit-taking. The high over $68,000 came after the launch over the Bitcoin ETF. From that high we have 2 main alternatives a V of a 1 of a V. For bears it a completive five with impulse right to the 50wma – an incredible 26% fall in a Friday night session. That’s impulse!

Bitcoin Mania in Perspective


Ethereum Weekly

On the Risk Radar

Fed Warnings on Possible Medium To Long Term Risks

 Geopolitical Tinderbox Radar

Turkey Geopolitical
Turkey Risk Monitor

Economic and Geopolitical Watch


Major US Banks Deliver Mixed Results in Q1, 2023

America’s big money center banks kick of first quarter earnings next week. There will be extra attention on them with the recent banking turmoil. Guidance will be keenly watched for from the money center banks. Concerns are rising over the banking sector’s exposure to commercial real estate. JPMorgan Chase (JPM), Citigroup (C), PNC Financial Services Group, Inc. (PNC) and Wells Fargo (WFC) reporting Q1 results on Friday. We got a preview from JPMorgan CEO Dimon saying that banking system is strong and sound despite the banking crisis raising the odds of a recession, and that the crisis is not over yet.

Major banks kicking off earnings this quarter, including BlackRock (BLK), Citigroup (C), First Republic Bank (FRC), JPMorgan Chase (JPM) and Wells Fargo (WFC).

The California and New York Regional Bank Collapse of 2023

So that went quick….. its all about the crisis that just kept holding off until it didn’t

Just when you thought it was safe:

Jay Powell’s FOMC Speech: “We are committed to learning the right lessons from this episode and will work to prevent events like these from happening again.”

“JPMorgan… agreed to acquire First Republic Bank in a government-led deal for the failed lender, putting to rest one of the biggest troubled banks remaining after turmoil engulfed the industry in March… ‘This is getting near the end of it, and hopefully this helps stabilize everything,’ JPMorgan Chief Executive Officer Jamie Dimon said on a call with journalists Monday. Regional banks that reported first-quarter results in recent weeks ‘actually had some pretty good results,’ the CEO said. ‘The American banking system is extraordinarily sound.’” May 1 – Bloomberg (Jenny Surane, Hannah Levitt and Katanga Johnson)

“The trio of bank failures since March has cast a pall over KPMG’s lucrative business as the largest auditor of the US banking sector. Questions over the quality of its work and independence have mounted in recent days, following the release of a Federal Reserve report into the collapse of Silicon Valley Bank and the forced sale of First Republic. The Big Four accounting firm was auditor to both banks, as well as to Signature… In all three cases, KPMG gave the banks’ financial statements a clean bill of health as recently as the end of February. ‘It’s a three-fer,’ said Francine McKenna, a former KPMG consultant who now lectures at the Wharton School… ‘It’s a dubious achievement . . . and we need tough action to back up tough talk from regulators.’” May 3 – Financial Times (Stephen Foley):

“The American Bankers Association on Thursday urged federal regulators to investigate a spate of significant short sales of publicly traded banking equities that it said were ‘disconnected from the underlying financial realities.’ In a letter to U.S. Securities and Exchange Commission Chair Gary Gensler, the lobby group said it had also observed ‘extensive social media engagement’ about the health of various banks that was out of step with general industry conditions.” May 4 – Reuters (Andrea Shalal)

Round One and Two

“The Federal Reserve on Sunday unveiled a new program to ensure banks can meet the needs of all their depositors amid escalating chances of bank runs following the abrupt collapse of two major banks in the space of 72 hours. The Bank Term Funding Program (BTFP) will offer loans with maturities of up to a year to banks, savings associations, credit unions and other eligible depository institutions. Here are some key elements of the Fed’s program: A key element of the program is acceptable loan collateral – including U.S. Treasuries and mortgage-backed securities among others – will be valued at ‘par’… Loans of up to a year in length will be available under the new facility… Interest rates will be the one-year overnight index swap (OIS) rate plus 10 bps and will be fixed for the term of the advance on the day the advance is made… The loan commitments made by the Fed’s 12 regional banks will be backstopped with $25 billion from the U.S. Treasury’s Exchange Stabilization Fund.”

March 13 – Reuters (Dan Burns)

“Just hours after Wall Street opened for trading on Friday morning, US regulators had seized control of Silicon Valley Bank, which had imploded under the strain of depositors pulling out their money en masse. What at first seemed like the failure of a one-of-its-kind lender with deep ties to the technology industry quickly appeared as though it might spiral out of control. Within 48 hours, regulators were preparing a package of emergency measures to quell panic among depositors and prevent contagion in the rest of the banking system. For some working on the effort, it evoked memories of the response to the coronavirus pandemic in 2020 and the great financial crisis of 2008. By Sunday evening, the US government announced it would guarantee all deposits held at SVB and crypto lender Signature Bank, which was also shut down by regulators at the weekend. The Federal Reserve, meanwhile, launched a lending facility that would be available to lots of other banks in order to ensure depositors’ demands could be met.”

March 13 – Financial Times (Colby Smith, James Politi, Ortenca Aliaj and James Fontanella-Khan)

“The biggest banks in the U.S. swooped in to rescue First Republic Bank with a flood of cash totaling $30 billion, in an effort to stop a spreading panic following a pair of recent bank failures. JPMorgan…, Citigroup Inc., Bank of America Corp. and Wells Fargo are each making a $5 billion uninsured deposit into First Republic, the banks said… Morgan Stanley and Goldman Sachs… are kicking in $2.5 billion apiece, while five other banks are contributing $1 billion each. The bank’s executives came together in recent days to formulate the plan, discussing it with Treasury Secretary Janet Yellen and other officials and regulators in Washington, D.C…”

March 16 – Wall Street Journal (David Benoit, Dana Cimilluca, Ben Eisen, Rachel Louise Ensign and AnnaMaria Andriotis):

“Credit Suisse shares rebounded sharply on Thursday after the lender revealed plans to borrow up to SFr50bn ($54bn) from the Swiss central bank and buy back about SFr3bn of its debt in an attempt to boost liquidity and calm investors. The Swiss National Bank had said on Wednesday it was willing to provide a liquidity backstop following a plunge of as much as 30% in the troubled lender’s stock… In a statement on Thursday, Credit Suisse said it had taken the decision ‘to pre-emptively strengthen its liquidity’ by borrowing the funds from the Swiss central bank under a loan facility and short-term liquidity facility.”

March 16 – Financial Times (Joshua Frankli, Owen Walker and Laura Noonan)
Akio Morita mistakes

The Week Ahead – Have a Trading Plan

What Macro and Micro Risks and Opportunities Lie Ahead this week

Global Watch

Next Week’s Risk Dashboard via Scotiabank

  • June FOMC is still ‘live’
  • The BoC needs to hike…
  • …as its conditions have been violated
  • Canadian jobs, wages and productivity
  • Treasury to replenish cash account
  • RBA decision resembles the BoC’s
  • RBI to hold, forward guidance key
  • BCRP likely to extend hold
  • Global inflation updates
  • China’s nonexistent inflation
  • Other global indicators

Central Bank Watch

The Federal Reserve’s next move is overhanging global financial markets, June FOMC is still ‘live’. Ahead of that we sees The BoC, RBA, RBI, CBR and BCRP decisions. The FOMC has gone into communications blackout ahead of the June 14th decision. We look towards the most recent data and mutterings. Friday’s US jobs report confused many with strong jobs growth but at the same time lower earnings and unemployment. Earlier in the week Cleveland Fed President Mester (not an FOMC voter) said that she sees no compelling reason to pause the rate hikes in June.

Later that day, Fed Governor Jefferson (FOMC voter and nominee for Vice Chair) said “…skipping a rate hike at the coming meeting would allow the Committee to see more data before making decisions about the extent of additional policy firming” and Philadelphia Fed President Harker (2023 FOMC voter) said the Fed can “take a bit of a skip for a meeting.” In response, the probability of a 25-basis points rate hike at the June meeting plunged to 25.6%, according to the CME FedWatch Tool. Still, Fed officials continue to signal that more rate hikes may be needed.

Eyes and ears will be on central bankers. We have the backdrop of a more hawkish Fed Chair in the face of escalating systemic risk. How will this affect Fed policy given the massive treasury positions out there and the risk of uninsured funds? In this environment we get pivots daily. How much damage is the Federal Reserve willing to do in the guise of controlling inflation?

This Week’s Interest Rate Announcements (Time E.T.)

In the week ahead we get 5 central banks delivering policy decisions.

Tuesday, June 6, 2023

  • 00:30 RBA Interest Rate Decision & Statement

Wednesday, June 7, 2023

  • 10:00 BoC Statement & Interest Rate Decision

Thursday, June 8, 2023

  • 00:30 RBI Interest Rate Decision
  • 19:00 Peru Interest Rate Decision

Friday, June 9, 2023

  • 06:30 CBR Interest Rate Decision

For our complete Central Bank Analysis and Outlook visit our Central bank Watch:

Economic Data Watch

US Data Focus

  • Monday: Final May IHS Markit Services PMI (prior 53.6) at 9:45 ET; and April Factory Orders (prior 0.9%) and May ISM Non-Manufacturing Index (prior 51.9%) at 10:00 ET
  • Tuesday: Nothing of note 
  • Wednesday: Weekly MBA Mortgage Index (prior -3.7%) at 7:00 ET; April Trade Balance (prior -$64.20 bln) at 8:30 ET; weekly crude oil inventories (prior +4.49 mln) at 10:30 ET; and April Consumer Credit (prior $26.5 bln) at 15:00 ET
  • Thursday: Weekly Initial Claims (prior 232,000) and Continuing Claims (prior 1.795 mln) at 8:30 ET; April Wholesale Inventories (prior 0.0%) at 10:00 ET; and weekly natural gas inventories (prior +110 bcf) at 10:30 ET
  • Friday: Nothing of note

Global Data Focus

  • OPEC: Sunday in Vienna Austria, Opec ministers meeting in Vienna
  • Canada: BOC rate decision, unemployment
  • Brazil: Q1 GDP figures
  • Mexico: Mexico international reserves, CPI, industrial production
  • Europe: Eurozone Services PMI, PPI ECB Lagarde at European Parliament’s Committee on Economic and Monetary Affairs, Spain industrial production, Poland rate decision, Eurozone retail sales, Germany factory orders, France trade, Germany industrial production, Bank of Italy reports on balance sheet aggregates
  • Russia: Russia rate decision, CPI
  • Turkey: Industrial production
  • UK: UK PM Rishi Sunak visits President Biden in Washington
  • China: Caixin services PMI, China forex reserves, trade
  • Japan: Japan household spending, GDP
  • India: India rate decision
  • South Korea:
  • Australia: RBA rate decision, current account, GDP, trade balance
  • New Zealand:

US Stocks Watch Earnings and Event Watch

Earnings Highlights This Week:

  • Monday includes HealthEquity (HQY) GitLab (GTLB), Science Applications International (SAIC) Sprinklr (CXM) and Fusion Fuel Green (HTOO).
  • Tuesday includes Hello Group (MOMO) Dave & Buster’s (PLAY), Stitch Fix (SFIX), Ciena (CIEN), J.M. Smucker (SJM), Thor Industries (THO), Cracker Barrel (CBRL), Yext (YEXT), Academy Sports + Outdoors (ASO), Casey’s General CASY) Couchbase (BASE), Manchester United (MANU), Calavo Growers (CVGW) and ABM Industries (ABM).
  • Wednesday includes GameStop (GME), Campbell Soup (CPB), Hashicorp (HCP), Group (TCOM), Smartsheet (SMAR), United Natural Foods (UNFI), Ollie’s Bargain Outlet (OLLI), Brown-Forman (BF.A) (BF.B), Semtech (SMTC) and Lovesac (LOVE).
  • Thursday includes DocuSign (DOCU), FuelCell Energy (FCEL), Signet Jewelers (SIG), Vail Resorts (MTN), Designer Brands (DBI) and Toro (TTC).
  • Friday includes NIO Inc. (NIO)

Investors (and algos) will focus on the conference calls and outlooks. Last quarter everyone expected the worse, we saw critical updates on production in coronavirus impacted regions and if there is extended halting of operations weighing on multi-nationals. 


Notable conferences running during the week include:


  • Developments from weekend meeting of OPEC’s Joint Ministerial Monitoring Committee & OPEC+
  • Merck (MRK) will host an Oncology Investor Event to coincide with the ASCO Annual Meeting
  • Moderna (MRNA) will also hold an investor event related to its ASCO abstracts.
  • Cisco (CSCO) will hold its four-day Cisco Live! IT event in Las Vegas. CEO Chuck Robbins will be one of the key speakers.
  • Apple (AAPL) WWDC23 event. Expected to unveil its augmented reality headset, a new 15-inch MacBook Air and an Apple Silicon-powered Mac. Along with the usual OS updates, Apple could also detail its AI strategy for the first time. Barclays tipped that Apple’s long-awaited entrance to mixed reality may help validate the tens of billions of dollars that Meta Platforms (META) has invested over the past decade into the space.
  • The 3M (MMM) firefighting foam trial is slated to begin amid reports a settlement is in the works.
  • Cogent Biosciences (COGT) investor webcast to discuss lead-in data from its ongoing Phase 3 PEAK trial
  • Oncolytics Biotech (ONCY) KOL event will cover the current treatment landscape for HR+/HER2- metastatic breast cancer, as well as results from the randomized Phase 2 BRACELET-1 study.
  • Lumen Technologies (LUMN) investor day
  • Week-long maintenance starts for the Turkstream pipeline, which carries Russian gas to Turkey and southeastern Europe


  • The three-day NAREIT REITWeek will begin amid heightened interest on the current status of commercial real estate. Alpine Income Property Trust (PINE), Kimco Realty (KIM), National Storage Affiliates Trust (NSA), Macerich (MAC), Crown Castle (CCI), Postal Realty Trust (PSTL), and Raynonier (RYN).
  • StepStone Group (STEP) Investor Day


  • OECD releases latest global economic outlook
  • The Jefferies Global Healthcare Conference will feature presentations from a long list of companies including Gilead Sciences (GILD), Amarin Corporation (AMRN), and Bio-Rad Laboratories (BIO).
  • The IEA Global Conference on Energy Efficiency will take place.
  • UK PM Rishi Sunak visits President Biden in Washington


  • Novartis (NVS) will hold a Sandoz Capital Markets Day event.
  • Toronto-Dominion Bank (TD) Investor Day
  • DLocal Limited (DLO) Investor Day event


  • The Nasdaq will release its short interest report
  • The go-shop period expires on the management buy offer for Franchise Group (FRG).

Sovereign Rating Updates

  • Greece (Fitch)
  • Spain (DBRS)

IPO Wrap

US IPO Week Ahead:

Focus on yourself and what YOU CAN INFLUENCE, set your trading plan and goals in be set for 2022.

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