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Good Morning Everyone!
Remember, stock market corrections are an opportunity. Generational wealth is built on red days. Few understand this.
MARKET UPDATE
Volumes were high yesterday
Hotter-than-expected CPI, buying on the open, selling in the afternoon
ETFs were 26% of the total shares traded
Retail net inflows down to 1-year lows
Buyers Strike so when an ETF gets sold……..more pain
ETF selling hitting stocks like Apple, down 17% year to date
Saudi Aramco Oil shares are up 27% this year
Oil giant Saudi Aramco passes Apple as the World’s most valuable company
How do you say, PAIN?…….Last 5 trading days.
Nasdaq down 12% in 5 trading days (down 30% from record high)
TSX down 6% in 5 trading days
Copper hits a 12 month low
10yr 2.8%
Yields have fallen since the CPI data
8:30 a.m.
weekly job claims 203,000 last week, estimate 193,000
April Producer Price +11% Y/Y, estimate 10.7%, previously 11.2%
US$ 104.6 NEW HIGH
Crude 104 -1.5%
OPEC monthly report: cut their global demand growth forecast for 2022 by 210,000/day
China
Sunac China (property company) has defaulted on a dollar bond
GRIT STOCKS:
Disney -4%
FQ2 results were good but numbers don’t matter in this environment
US Parks strong both on attendance and peer cap spending
Disney+ 137.7 million subs
ESPN+ 22.3 million subs
Hulu 45.5 million subs
By year-end F2024, Disney+ streaming to reach 230-260 million subs and achieve profitability
Earnings
Rivian
Beyond Meat -25%, cash burn higher than expected
Motorola Solutions
CRYPTO
UST’s crash is putting pressure on other algorithmic stablecoins like USDN, FRAX, and FEI
The weak sentiment has even reached Tether (USDT) which has lost its $1 peg:
Terra’s native token LUNA plunged to literal pennies on the dollar after reaching a price of nearly $120 just 5 weeks ago
Bitcoin’s put/call ratio has risen to the highest levels since February:
Front-month implied volatility jumped to March levels suggesting traders are expecting bigger price swings in the short-term:
Bitcoin has not done a great job acting as an inflation hedge:
Bitcoin and Ethereum are both deep in oversold territory:
MEME OF THE DAY
Check out this flow from Unity ($U) on April 2 which paid out nicely following the big drop on earnings this week:
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