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.


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


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


MEME OF THE DAY


 

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