PPI in-line

Good Morning Everyone!

Yesterday the S&P made history by falling 4% in a single trading day with the VIX closing the same day under 30. Remember, tough times don’t last but tough investors do.

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Prices as of 4 pm EST, 9/13/22; % YTD

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MARKET UPDATE

QQQ QQQ had their worst day since March 2020 yesterday but in reality, the market just gave back recent gains

• Yesterday’s move brings us back to Tuesday after the long weekend levels (no panic)

• Volumes were slightly higher than the 20-day moving average

10yr 3.4%

U.S. PPI decreased 0.1% m-o-m to 8.7%

• Numbers are in-line with expectations

• No impact on yields this morning

US$ 109

C$ 75.8

VIX 27

Crude 87 flat

• API weekly numbers for Crude and product inventories were mixed

• Biden administration leaked that they would start to buy crude for the strategic reserves at under $80

• Ongoing discussions in Europe on the market structure for gas and power windfall profit tax

• IEA reduced it’s 2022 global demand outlook by 110,000 b/d

China

• The Beijing government announced on Monday that employees and students must show a negative test taken within the previous 48 hours to return to work and school on Tuesday after the three-day Mid-Autumn Festival holiday.

• That led to chaos on Tuesday morning when commuters found subway gates would not open because they could not verify their Covid-19 tests.

• Reuters stating that Moderna CEO is talking with the Chinese government to supply vaccine to the country

Earnings: None

CRYPTO UPDATE

Crypto dominance

• Since June:

  • Bitcoin BTC/USD dominance down to 39.1% from 47.5%

  • Ethereum ETH/USD dominance up to 20.5% from 16%

BTC - ETH perpetual funding rate spread

• Near all-time high

• Traders heavily short ETH vs BTC

• Hedging ahead of Merge

Source: DailyShot/Glassnode

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MEME OF THE DAY

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