Morning Market Update Tuesday, September 6, 2022

Providing Market Insights and Returns

The short week is staring off on a strong foot. Futures are rising this morning after weeks of down markets. DOW FUT up 0.64%, S&P up 0.59%, NAS up 0.55%, Gold up 0.02%, Oil pulling back slightly 0.9%, and the US 10yr continues to tick higher by 7bps @ 3.26%. Asian Markets closed mixed and Euro averages are mostly in the green. Very little news out today with the next big event coming in a week with the CPI print. There is not a whole lot of new updates since yesterdays note, click here to read.

Not surprising that the markets are indicating an open in the green. The SPX is down about 9% from the recent rally top and currently sitting at resistance. The SPX hasn’t been able to close above this 50dma for the last 4 trading days, with 34% of stocks in the S&P below their respective 50day I think it will be hard to see any long term strength unless we first see the breadth expand from within. The top 5 members of the S&P, AAPL, MSFT, AMZN, TSLA, and Google (combined shares), only AMZN is above its 50dma (TSLA is off by a few bps). Without the leadership from the top it will be hard for the averages to get dragged up.

Market News: Nothing too new from yesterday. Analysts believe that the OPEC move was more political than anything, not surprising after the talk of price caps. European politicians are showing more signs of cracking and giving in to removing sanctions on Russia in order to get the pipelines flowing again. Californian has declared another day of grid emergency and is nearing rolling blackouts as the energy crisis continues on home turf, maybe this will get more politicians on board for a more realistic energy policy. Xi is taking a trip to Kazakhstan, a country that produces half of the world’s Uranium. Doesn’t look like a coincident as the whole world is trying to add ways to ensure energy security. China is also continuing more lockdowns and their zero covid policy. Hurricane Tracker: There is a hurricane heading towards the UK, and a tropical storm off the Bahamas headed towards the middle of the Atlantic. There are 2 storms coming off Africa into the Atlantic that have a chance to become tropical storms There is a Hurricane that is making its way up the coast of Baja.