The new quarter seems to start on a high note, as futures point to a positive opening. Knowledge seems to have good luck in helping you prevent other high-risk people from avoiding serious illness and death. Merck rose about 8. 5% in premarket trading. The news gave the impression of shifting futures markets from a negative opening to a positive one.
In a sign that life may return to normal, analysts at JP Morgan (NYSE: JPM) showed their love for Southwest Airlines (NYSE: LUV) by putting them overweight. end of the delta variant tunnel. In addition, Disney (NYSE: DIS) announced its deal with actress Scarlett Johansson for her film Black Widow.
The non-public source of revenue report arrived here as expected, while non-public expenditures were higher than expected. The core PCE value index showed that inflation rose in line with expectations. The 10-year Treasury (TNX) bond had already traded decline before the announcement and remained relatively unchanged thereafter. The ISM Manufacturing number comes out after the market opens.
Thursday’s bullish start ended on a declining note, as the Dow Jones Industrial Average closed down 1. 59% and about 5% from its all-time high. benefits of Bed Bath
Apart from the seasonal crisis in September, the other dark cloud in the markets is the existing debt ceiling problem. The debate was delayed through a spending bill that sparked a rift between moderate and liberal Democrats. Briefing. com informed that the solution will be approved by the House. House Speaker Nancy Pelosi plans to put the solution to a vote on Friday. The solution allows Congress to present the spending bill for a few months and focus on the debt ceiling.
China’s production purchasing managers’ index fell in September, breaking an 18-month expansion. The report surprised analysts who expected some change. The Wall Street Journal reported that China has temporarily recovered from the pandemic but continues to be hampered by regional COVID outbreaks. disruptions to the supply chain, port closures, emerging commodity prices, semiconductor shortages, and expanding economic regulation.
China’s production sector is now facing a developing energy crisis that could further damage its output Economists at Morgan Stanley (NYSE: MS) expect a possible 1% loss in China’s gross domestic product in the fourth quarter if those disruptions persist. target joins a developing list of reduced projections from other analysts, adding Nomura, China International Capital, Goldman Sachs, S
While China’s list of developing disorders is likely to be a cause for concern, there is still little indication that the recent slowdown was nothing more than a stable September collapse. October was home to The Bank Panic of 1907, The Crash of 1929 that triggered the Great Depression and Black Monday of 1987. However, Stock Trader’s Almanac reports that October was a relatively positive month on average.
It is vital that the almanac deals with old averages and not with long-term value forecasts. Of course, there are lingering dangers like the debt ceiling, emerging yields, energy shortages, and the weakening of the Chinese economy that can make this October a little scary. . Only time will tell.
TABLE OF THE DAY: THE HISTORY OF OIL. Crude oil (/CL: candles) is testing a resistance point around the $76 mark dating back to 2014. Before 2014, this same point served as support. The resistance point past $110 Data source: S Indices
Have a plan: Technical analysts use and degrees of resistance to identify where other investors can buy or sell a security. If crude oil exceeds its $76 level, many technicians would use past resistance grades to set their next value target.
That’s why many technicians have an explained plan that tells them when to position an exchange, how much to trade, and when to exit. In fact, many of them will use scaling strategies to help hazards and reap benefits.
As smart as gold: speaking of resistance, the dollar, gold and silver are trading at attractive points. Precious metals have lost their luster as the US dollar (DXY) has recovered over the past 4 months. gold (/GC) is testing its August low and the dollar index is trading at 94. 25, just 0. 75 from its 2020 resistance point.
The confluence and degrees of resistance between these actions is not a coincidence; before cryptocurrencies, valuable metals were thought to be one of the few opportunities for fiat currencies; if the dollar’s resistance point is maintained, the gold and silver grades can also be maintained. If the dollar breaks the resistance, valuable metals will most likely collapse.
As the debt ceiling debate progresses, confidence in the dollar may simply decline and investors may opt for valuable metals as a hedge against uncertainty. This can be an attractive domain to keep an eye on for the next few days, if not weeks. , depending on how long it will take Congress to reach the debt ceiling.
Sometimes the reverse dating between stocks and bonds has been decoupled where they usually move in the same direction. There are 3 prolonged eras in which this has happened: 1997-1998, 2004-2006 and 2010-2011. In his e-book Intermarket Analysis, John Murphy thought he discovered that this happened in 1997-1998 because the Japanese central bank was buying Treasuries to help help the deflation of the yen. A 2010 review through Citibank found similar effects for 2004-2006 compared to what was seen in the 2010-2011 era when Asian central banks bought Treasuries to aid currency deflation.
Since March 2021, the S index
So who buys Treasuries? The Financial Times reported on Sept. 20 that China and Japan were once again buyers. If demand for Treasuries continues, investors can take advantage of increasing any of the assets. In addition, buying from Asian central banks may make the reduction less difficult for the Fed.
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