Weekend Wall Street #38 - Monday Edition
By continuing to read, you agree to the disclaimer at www.aditdayal.wix.com/dislcaimer.
Good evening traders - as I type this my long weekend comes to a close as I had Friday through Monday off but we are back in action. One of my bankruptcy trades KAL 0.00%↑had an amazing day today so I hope some of us banked on that. Let’s get into the weekly review:
We are about to have one of the largest week in terms of economic data and catalysts, so let’s take a look at what we have coming up!
Around 65,000 tonnes of LNG imported from the UAE was exchanged for yuan over the last week and I’ve been seeing a lot of articles online this week about how the US’ reign on dominance as the world's primary reserve currency might be over. I do think this is just a passing phase and a little bit of exaggeration from the media. Although I do think it’s possible we can have a trade from this information. This information can cause a boost in Gold and, as a riskier trade, into crypto as people move money into what they consider a “safe” asset.
Bank of America sees oil refiners leading their energy sector outlook as they upgrade their earnings outlooks for all of those names, citing Valero as their top pick.
Last week we also got our jobs report which shows claims finally rising. Investors are caught between two sets of worries. The first is that a strong labor market, which puts upward pressure on wages, will keep the rate of inflation elevated and force the Fed to continue tightening monetary policy with higher short-term interest rates. The second is that a weakening labor market will undermine the consumer spending growth that has kept the economy afloat during this inflationary period, resulting in a recession. This jobs report, in my opinion, keeps us on track for a soft landing: