US Market

The Walt Disney Company reported its financial results for the quarter ended October 2, on Wednesday after US markets closed, largely missing estimates

Yesterday, the US headline CPI beat the forecast of 5.8% y/y, coming in at 6.2%. The core CPI, which strips out volatile items such as energy and food also beat at 4.6% (4.3% forecast). As such, nominal yields are adjusting. Past performance is not an indicator of future results Source: www.tradingview.com The chart above shows the Heiken Ashi US10Y. Its yield is a nominal yield i.e. it has an inflation…

Past performance is not an indicator of future results The weekly SPX500 is trending up. It has a higher trough followed by a higher peak. At some stage, the current impulse (aqua line) will run out of momentum, and a correction will ensue. As long as the pullback finds support above the previous higher trough, the uptrend remains intact. The weekly RSI is not overbought, but the daily time frame…

Past performance is not an indicator of future results. Source: www.tradingview.com Prior to the Covid-19 pandemic, the US10Y yield (blue line chart) was in decline. At the same time, the 10Y breakeven inflation rate was coming down. This period is denoted by the red down trendlines. The orange box represents most of the 2020 year, as authorities implemented unprecedented monetary stimulus to deal with the fallout of the pandemic. To…

The share price of Ford Motor Company hit the $20 mark for the first time in more than 20 years, with F.us registering a staggering nearly 130% year-to-date rally, as investors appear to like its recent turnaround plan under the new CEO

TSLA gapped over 5% lower today after Elon Musk's Twiter poll suggested a sale of 10% of his personal stock. In the poll Musk wrote, "Much is made lately of unrealized gains being a means of tax avoidance, so I propose selling 10% of my Tesla stock. Do you support this?" Of respondents, 57.9% answered in the affirmative. Past performance is not an indicator of future results The left chart…

Past performance is not an indicator of future results. Last week's price action confirmed the USDOLLAR's reference low, by closing above the previous week's high (aqua horizontal). It's important to acknowledge that the reference low does not guarantee a bullish swing. However, for a bullish swing to chart, this confirmation was necessary. Moreover, the confirmation respected the current USDOLLAR's momentum. Past performance is not an indicator of future results. Trends…

Past performance is not an indicator of future results Source: www.tradingview.com The weekly chart above shows gold (XAUUSD) from the beginning of 2019. The indicator below is the correlation coefficient between the precious metal and the US10Y. For most of this period the correlation has been negative (green rectangle). A reason for this is that bonds and gold are both considered safe-havens. During this period the yield on the US10Y…

The NFP print beat forecast coming in at 531k. The Dow Jones estimate was for 450k. This is a vast improvement over the last two months which missed expectations. Importantly, September's print was revised to the upside, increasing by 312k. Wage inflation came in at the forecast of 0.4% for the month, but was up 4.9% y-o-y. Of note. the participation rate held at the 61.6% level, which would be…

The two ride sharing companies announced this week their latest quarterly financial results, for the third quarter of the year

The Fed has a dual mandate to achieve price stability and maximum employment. In this regard, we have seen progress on both fronts. However, the employment market still has room to move before the Fed will be comfortable in terms of its mandate. A broad measure of unemployment in the US is the U6 unemployment rate (as opposed to the often quoted U3 measure). U6 includes discouraged, underemployed, and unemployed…