It was a terrible week in a terrible year for the stock market.
Walmart WMT,
Target TGT,
and Tencent 700,
each reported disappointing results to fuel concerns about rate hikes and quantitative tightening. But, Melvin Capital aside, there are no signs of capitulation.
According to Sean Darby, chief equity strategist at Jefferies, stocks totaled $46 billion in the past six weeks, up from $91 billion when the COVID outbreak first became apparent. So you could see the argument as to why markets may not have plumbed their depths.
Renowned engineer Tom DeMark, who called the bottom in 2020 after COVID emerged, disagrees. The founder of DeMark Analytics — known for advising hedge fund managers such as Paul Tudor Jones and Steven Cohen — told Fundstrat’s chief of technical strategy Mark Newton that key markets are about to turn around.
DeMark’s indicators are designed to anticipate turning points, to find overextended price movements, in both directions, which are reversed.
The S&P 500 SPX,
DeMark says will see another sell-off, closing below 3,863, before a “shocking rally” sends the index soaring between 4,400 and 4,500. The 10-year-old TMUBMUSD10Y,
will make another high before a peak, and crude oil CL.1,
will make a top — $117.29 a barrel, he predicts — in four trading days before falling lower.
The fundamental implications, if he is right, would be that the inflationary drivers of energy and commodities peak, which would put less pressure on inflation.
the buzz
Friday’s session includes the expiration of key options contracts that could add volatility.
The People’s Bank of China cut the rate used for home mortgages in the country from 4.6% to 4.45%.
Ross stores ROST,
joined retail Armagedon by reporting a 7% drop in same-store sales. In addition to weakening sales, the retailer also pointed to the impact of higher transportation and labor costs.
Chip equipment maker Applied Materials AMAT,
reported a worse-than-projected profit and gave a disappointing outlook. Cyber security company Palo Alto Networks PANW,
however, walked the guidance for a third time.
SpaceX has paid $250,000 to settle a sexual misconduct claim against its CEO, Elon Musk, according to a report in Business Insider. Musk, also the CEO of Tesla TSLA,
and bidder for Twitter TWTR,
told the publication that the story was a hit and later tweeted that the allegations are not true.
President Joe Biden started a trip to Asia with a visit to a Samsung Electronics factory in South Korea, where machines are built by Lam LRCX,
and KLA KLAC,
the markets
US stock futures pointed to a strong open, with futures on the Dow Jones Industrial Average YM00,
rises to around 250 points.
The return on the 10-year Treasury TMUBMUSD10Y,
amounted to 2.85%.
Top tickers
Here were the most active stock stickers from 6 a.m. Eastern.
ticker | Security name |
TSLA, | Tesla |
GME, | GameStop |
AMC, | AMC entertainment |
NIO, | Nioz |
AAPL, | Apple |
TWTR, | |
AMZN, | Amazon.com |
NVDA, | Nvidia |
GREAT, | Vinco Ventures |
AMD, | Advanced micro-devices |
The video
It’s hard to find a better video than a programmer teaching his goldfish how to pick stocks and then comparing the results to the picks on Reddit Wall Street Bets. (Contains some curses.)
random reads
Finland’s application to NATO is still pending, but NATO beer is already on the shelves.
Bob Cousy, the basketball legend who is now 93 years old, fired back at ESPN commentator JJ Redick’s “plumbers and firemen.”
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