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VIX down as we settle into a trading range

TUESDAY MARKET UPDATE
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VIX down as we settle into a trading range

TUESDAY MARKET UPDATE

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Good Morning Everyone!

Remember, the stock market will bottom before the economic data gets better.

MARKET UPDATE

Markets have calmed down. VIX hit 34 in May.

Lots of economic data today but it won’t change FOMC 75 point hike expected July 27

  • 8:30 a.m. May’s advance goods trade balance

  • 9:00 a.m. April Housing data and S&P CoreLogic Case-Shiller

  • 10:00 a.m. June Consumer Confidence and Richmond Fed Manufacturing Index

What’s copper doing?

What’s Lumber doing?

China

  • Reduces quarantine times for inbound travelers from 14 to 7 days

  • President Xi will leave the mainland for the 1st time since January 2020 when he visits Hong Kong

  • Shanghai Disneyland set to reopen Thursday as local Covid wave subsides

  • China markets up 1% on the news

Crude 111 +1%

United Arab Emirates (UAE)

  • UAE’s oil minister said UAE producing at maximum capacity based on it OPEC+ quota of 3.168 mm/d

  • Implying that UAE could do more but the quota constrained them.

  • The oil minister did not offer an assessment of Saudi Arabia’s incremental capacity.

  • Global spare capacity is pretty limited at this stage to UAE and Saudi Arabia (should keep oil prices near current levels).

Russia/Ukraine War

  • Zelensky spoke with G-7 and said he wants the war to be over by year end

Amazon

  • For the 1st time, AMZN will host 2 Prime Day shopping events in 2022

  • July 12-13 and another in Q4

  • AMZN likely to clear excess inventory

Taiwan Semiconductor

  • 6% price hike in 2023

Nike -2%

  • lower EPS guidance

  • voiced caution on China

  • Global sales +3%, inventory up 23%

CRYPTO UPDATE

FTX seeking path to buy Robinhood

  • Sam Bankman-Fried (FTX CEO) disclosed 7.6% $HOOD stake in May

  • $HOOD +14% at close

  • Robinhood has 22.8 million accounts

Record outflows for digital assets last week

  • Total outflows of $423M

  • Led by Bitcoin outflows of $453M

    • Short-Bitcoin assets saw inflows of $15.3M following the launch of $BITI

  • Silver lining: Ethereum snapped an 11-week outflow streak with inflows of $10.9M

  • YTD flows

    • Bitcoin +$26.2M

    • Ethereum -$448.3M

    • Solana +$109.3M

But there’s some good news

  • Bitcoin long-term HODL’ers are capitulating, which is similar to what has occurred near the final stages of previous bear markets:

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Disclaimer:The publisher does not guarantee the accuracy or completeness of the information provided in this page.  All statements and expressions herein are the sole opinion of the author or paid advertiser.

Grit Capital Corporation is a publisher of financial information, not an investment advisor.  We do not provide personalized or individualized investment advice or information that is tailored to the needs of any particular recipient.  

THE INFORMATION CONTAINED ON THIS WEBSITE IS NOT AND SHOULD NOT BE CONSTRUED AS INVESTMENT ADVICE, AND DOES NOT PURPORT TO BE AND DOES NOT EXPRESS ANY OPINION AS TO THE PRICE AT WHICH THE SECURITIES OF ANY COMPANY MAY TRADE AT ANY TIME.  THE INFORMATION AND OPINIONS PROVIDED HEREIN SHOULD NOT BE TAKEN AS SPECIFIC ADVICE ON THE MERITS OF ANY INVESTMENT DECISION.  INVESTORS SHOULD MAKE THEIR OWN INVESTIGATION AND DECISIONS REGARDING THE PROSPECTS OF ANY COMPANY DISCUSSED HEREIN BASED ON SUCH INVESTORS’ OWN REVIEW OF PUBLICLY AVAILABLE INFORMATION AND SHOULD NOT RELY ON THE INFORMATION CONTAINED HEREIN.

No statement or expression of opinion, or any other matter herein, directly or indirectly, is an offer or the solicitation of an offer to buy or sell the securities or financial instruments mentioned.  

Any projections, market outlooks or estimates herein are forward looking statements and are inherently unreliable.  They are based upon certain assumptions and should not be construed to be indicative of the actual events that will occur.  Other events that were not taken into account may occur and may significantly affect the returns or performance of the securities discussed herein.  The information provided herein is based on matters as they exist as of the date of preparation and not as of any future date, and the publisher undertakes no obligation to correct, update or revise the information in this document or to otherwise provide any additional material.

The publisher, its affiliates, and clients of the a publisher or its affiliates may currently have long or short positions in the securities of the companies mentioned herein, or may have such a position in the future (and therefore may profit from fluctuations in the trading price of the securities).  To the extent such persons do have such positions, there is no guarantee that such persons will maintain such positions.

Neither the publisher nor any of its affiliates accepts any liability whatsoever for any direct or consequential loss howsoever arising, directly or indirectly, from any use of the information contained herein.

By using the Site or any affiliated social media account, you are indicating your consent and agreement to this disclaimer and our terms of use. Unauthorized reproduction of this newsletter or its contents by photocopy, facsimile or any other means is illegal and punishable by law.

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