Morning Market Update September 1, 2022

Providing Market Insights and Returns

Happy September! Historically one of the worst months for the markets. Markets are looking like they might hold up September’s reputation. DOW FUT down 0.37%, S&P down 0.4%, NAS down 0.59%, Gold down 0.78%, the oil slide continues with WTI down 1.4% and below $90, and the US 10yr is up 6bpd @3.19%. Asian markets ended deeply in the red after China’s factory activity shrank. Euro averages are all lower with the Stoxx 600 down 1.3%. Some more data out this morning.

Yesterday was another tough day for the markets, ending August in negative territory. Almost no where to hide yesterday. Energy was wrecked after heightened demand destruction concerns and China announcing new lockdowns. We saw more deterioration within the market with new lows far exceeding new highs. ADV/DEC was -2.8 to 1, which isn’t extremely high, but the volume was higher than normal yesterday. The percentage of stocks above their 50dma and 200dma dropped to 43% and 29%, respectively. The SPX, NASDAQ and the DOW all closed below their 50dma. Best bet is that we continue to see a further pullback heading into the next Fed Meeting.

Market News: The US is restricting some chip sales to China. Chengdu locks down 21.2M people. The UN inspectors sent to Ukraine were stopped as shelling continued near the reactor. Taiwan shot down a drone off the Chinese Coast. The ECB continues to telegraph a hawkish tone. Days after California’s announcement about now more gas cars in 2035, the government said that people should avoid charging their EVs amid the grid emergency. Countries are slowly trying to take back their sanctions that they placed on Russia, and Ex-Aramco EVP stated that there is no alternative to Russian Gas. The cracks are starting to show the questions is will the world forget about their angers towards Russia to get access to their natural resources? Hurricane Tracker: There is a depression (Pre hurricane) in the middle of the Atlantic, there is a storm heading towards the Bahamas that in the next 5 days has a 80% chance of becoming a tropical storm and off the coast of western Africa heading towards Central America is a storm with a small chance of turning into a tropical storm.

Look for a technical note later today. WHC TOP 5: EXTR, CEG, CROX, NET, PCTY