US Market

The tech-heavy index started the week on the offensive after the recent 2+ year lows, but slides today, unable to benefit from the solid quarterly results by streaming giant Netflix

The FXCM US.BANKS basket has moved into its bullish channel between the upper blue and red bands (top). Moreover, its stochastic (middle) is moving towards the 80+ levels (red arrow). If it hits and maintains, the positive momentum will likely be price supportive.

After a dismal first half of the year, the streaming giant staged an impressive turnaround, adding almost 2.5 million new subscribers during the third quarter, as per Tuesday’s earnings report

The NAS100 has a positive sentiment heading into the cash open. The H4 chart on the left shows the index positioned between the upper blue and red bands in its bullish area. However, the hourly chart on the right suggests a potential higher trough (HT?). An hourly close above the green horizontal would increase the likelihood of this scenario and lay the platform for the next higher peak.

The US30 jumped 2% yesterday, pushing the index into its bullish area between the upper blue and red bands. The daily stochastic is heading towards the 80+ area (green rectangle). If it hits and maintains, an underlying bullish momentum will be present.

NAS100 started this week in similar fashion to the prior one, since it set fresh two-year lows, as markets gear up for US CPI inflation update and the last earnings season of the year

Tuesday marked another episode to the acquisition saga, as Tesla’s CEO offered to buy Twitter at the original price of the April agreement, after previously having backed away from the deal

The real rate uptrend remains valid, and the upward green trendline defines its momentum. In this vein, a pullback to test this momentum will be compelling, given the Fed's current aggressive monetary policy. As such, and until proven otherwise, a dip in the yield uptrend remains our preferred scenario.

Core PCE, the Fed's preferred inflation measure, exceeded the 4.7% YoY forecast, printing at 4.9%. However, on a month-on-month basis, it was 0.6% against the 0.5% expected. Food and energy prices are excluded from the core number, implying that aggregate demand hasn't adjusted as expected for the Fed's current hiking cycle.

As the real risk-free yield increased, investors' required rate of return has followed suit. This mechanism has weighed heavily on the US30, as its present value adjusted downwards in response.

Against a stagflationary environment and aggressive monetary tightening by the Fed, which are harmful to Wall Street, we take a look at some companies that will be on our radar over the coming months