Wake Up Call – The Day Ahead Dec 17 2021

A live recap of what happened while we slept overnight and what lies ahead. We go through charts on the S&P 500, Nasdaq, Russell, WTI Oil and Natural gas. With special guest the Turkish Lire. Markets continued softer after yesterday’s reversal off all-time highs. The Central Bank deluge continues with comments from CB talking heads. Quad Witching and a week before Christmas so be flat or nimble.

  • Enjoy live commentary from Our Trading Room at youtube as the day wraps up – feel free to like and share

The markets:

  • WTI futures off overnight highs – .64 at $71.35
  • Natural gas -.09 at 3.686 ahead of EIA
  • Apple hanging around $169.95, – 1.33 yesterday’s reversal flowing on
  • The obsession remains the price of Apple for 3 trillion market is $182.86
  • U.S. Treasuries yields lower. 10-yr yield down three basis point to 1.39%, down ten basis points since last Friday. 2-yr yield is currently down one basis point to 0.60%, down six basis points since last Friday, despite Fed signaling three rate hikes in 2022.
  • FedEx (FDX 252.40, +13.88): +5.8% beat top and bottom-line estimates, guiding FY22 EPS above consensus, and authorizing a new $5 billion share repurchase program.
  • Oracle (ORCL 98.88, -4.34): -4.2% after The Wall Street Journal reported that the company is in discussions to acquire Cerner (CERN 94.00, +14.51, +18.3%) for potentially $30 billion.
  • Rivian (RIVN 100.50, -8.37): -7.7% after missing EPS estimates.
  • U.S. Steel (X 22.28, -1.17): -5.0% guiding Q4 adjusted EBITDA below consensus, citing a seasonal year-end slowdown in order entry activity. 
  • Johnson & Johnson (JNJ 170.00, -3.01): -1.7% after the CDC confirmed it expressed a clinical preference for individuals to receive an mRNA COVID-19 vaccine over J&N’s vaccine due to rare blood clot issues. 
  • The U.S. Dollar Index is little changed at 96.05.
  • Spot gold $1809.9 higher by +$7.6 or 0.42%
  • Spot silver $22.62 higher by +$0.07 or 0.31%
  • Bitcoin is trading at $48,664 after high $49,449
  • In forex the CHF the strongest, AUD & NZD weakest
  • Japan’s Nikkei: -1.8% (+0.4% for the week)
  • Hong Kong’s Hang Seng: -1.2% (-3.4% for the week)
  • China’s Shanghai Composite: -1.2% (-0.9% for the week)
  • India’s Sensex: -1.5% (-3.0% for the week)
  • South Korea’s Kospi: +0.4% (+0.3% for the week)
  • Australia’s ASX All Ordinaries: +0.1% (+0.2% for the week).
  • STOXX Europe 600: -0.7% (-0.5% week-to-date)
  • Germany’s DAX: -0.8% (-0.7% week-to-date)
  • U.K.’s FTSE 100: +0.3% (-0.2% week-to-date)
  • France’s CAC 40: -1.0% (-1.0% week-to-date)
  • Italy’s FTSE MIB: -1.2% (-1.0% week-to-date)
  • Spain’s IBEX 35: -0.7% (-0.5% week-to-date).

Overnight Stories in Depth

Into The Vortex – EIA Reports -88Bcf Draw in Natural Gas Storage – TRADERS COMMUNITY

With Winter approaching and gas withdrawal season in swing natural gas futures are reacting to domestic weather models. Last week EIA reported a draw of -88Bcf of working gas in storage as expected. With the global energy crisis LNG exports continue to grow but we balance supply shortages with deliverability.

Banco de México Raises Rates Again As Inflation Risk Deteriorates More – TRADERS COMMUNITY

The Mexican Central Bank, Banco de México raised interest rates by 50 basis points to 5.50% with the bank saying Balance of Risks for Inflation Have Deteriorated. Last month the Banco Central do Brasil​ hiked its benchmark interest rate by 1.5% to 9.25%.

ECB Leaves Rates Unchanged, PEPP to End in March But APP Expanded – TRADERS COMMUNITY

ECB left rates unchanged as expected in December. The bank left deposit facility interest rates at -.50% and held steady rates on the main refinancing operations and on the marginal lending facility unchanged. ECB governing council expects net purchases to end shortly before it starts raising rates

Swiss National Bank Leaves Rates Unchanged at -0.75% as expected, Raises Inflation Forecast – TRADERS COMMUNITY

The Swiss National Bank kept negative interest rates unchanged at -0.75% for sight deposits in December. The SNB made no key changes in their language as they continue to keep negative rates and reiterated that the Swiss franc remains “highly valued”.

Visit Traders Market Weekly: Central Banker Deluge December 10 – 16 2021

for the daily calendar

Earnings Calendar For Today

Earnings BMO

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Any questions please feel free to ask them below. Trade Smart!

Have a great trading day!

RISK DISCLOSURE STATEMENT FOR SECURITIES, STOCKS, FOREX, CRYPTO FUTURES OR ANY OTHER FINANCIAL INSTRUMENT

This information is provided for educational purposes only and is not a direction to buy or sell the instruments discussed. It is imperative before trading you assess your individual risk, the market risk, taxation risk, your counterparties risk and your suitability to engage in any investment of trading financially, mentally or ethically or legally. This warning does not cover all possible risks and is for educational purposes only.

THE NFA in their disclosure statement discusses the characteristics and risks of standardized security futures contracts traded on regulated U.S. exchanges. At present, regulated exchanges are authorized to list futures contracts on individual equity securities registered under the Securities Exchange Act of 1934 (including common stock and certain exchange-traded funds and American Depositary Receipts), as well as narrow-based security indices. Futures on other
types of securities and options on security futures contracts may be authorized in the future.

It is advised and suggested before trading you read the risk disclosure documents of what and where you intend to trade. We have included the short form from the NFA, this is not to be taken as a be all and end all please continue with your own investigation of the markets or instruments you trade with.

Before trading go to: RISK DISCLOSURE STATEMENT FOR SECURITY FUTURES CONTRACTS