Quite News Day On Low Volume Days

Good Morning Everyone!

Today Warren Buffett turns 92. He’s lived through world wars, depressions and crashes and is still investing in the stock market while eating Dairy Queen.

Prices as of 4 pm EST, 8/29/22; % YTD

MARKET UPDATE

Heavy vacation schedules this week

• Yesterday was the 3rd slowest volume day year to date

• News is also quite slow

Markets are bouncing off the 100-day moving average

• NASDAQ has fallen 5% in 2 trading days since Powell’s Jackson Hole speech

10yr       3.1%

QE Program

• Fed’s will ramp up plan to reduce their $9 trillion portfolio

• Fed will boost amount of Treasuries and mortgaged-backed-securities that it will let mature

Crude    94.5        -2%       

• Natural Gas in Europe is lower for a second day

• The EU is preparing to intervene to bring prices lower

• European Commission President is expected to speak today about emergency steps

China

• China sets October 16 as opening day for the National Congress

• Xi Jinping is expected to be granted a third 5-year term

Earnings

• Best Buy BBY: comps -14.7% for the quarter, guiding the year -11%

CRYPTO UPDATE

Digital asset flows

• $27 million in outflows last week

  • Bitcoin BTC/USD -$28.7 million

  • Ethereum ETH/USD -$1 million

• 3rd consecutive week of minor outflows (total $46 million)

• Volumes remain low

• Seasonality

Volatility ahead

• Open interest leverage ratio for Bitcoin and Ethereum at all-time highs

• Degree of leverage relative to market size

• Higher price sensitivity

• Higher risk of market squeeze

These are the tickers dominating the news headlines:

data from Swaggy Stocks