On the heels of last week’s bullish turn for stocks, the setup is looking slightly less positive for Monday. Hong Kong stocks may be affecting the mood with a giant slump after China’s leader cemented his power.
And we’re entering Fed blackout period ahead of next week’s meeting that’s expected to deliver yet another three-quarters of a percentage point rate hike. As Miller Tabak + Co.’s chief market strategist Matt Maley tells clients, we can’t go back to 2021, when many were getting richer than they should have been.
“I’m very pessimistic. There isn’t a rainbow at the end of all of this,” Weinstein said in an interview with the Financial Times that published on Monday. “There’s no reason that this difficult [economic] period will only last two to three quarters [and]..no reason to think we’ll have a soft landing or a shallow recession.”
As for how he’s playing a lengthy bear market for stocks, Weinstein is putting his money on credit-default swaps because he thinks a recession will trigger more corporate defaults and lead to dramatic widening of credit spreads. He cautions against equity market options, which he said won’t pay off unless stocks dramatically plunge.
The markets Stock futures ES00 NQ00 were mixed, with bond yields TMUBMUSD10Y TMUBMUSD02Y pulling back and the dollar DXY modestly higher. Oil prices CL.1 are also under pressure. Silver SI00 was getting a bid. JetBlue JBLU reports Monday in a huge week for earnings, with Alphabet GOOGL , Twitter TWTR and Texas Instruments TXN on Tuesday, Microsoft MSFT and Meta Platforms META on Wednesday and Apple AAPL and Amazon.com AMZN on Thursday.PMI data is due at 9:45 a.m., in a week that will bring data on the housing market, third-quarter GDP, and Fed-favored inflation gauges. The European Central Bank, along with Japan and Canada’s central banks are due to meet this week.
There's always some reason things look less positive in cannabis.
Did anyone not make a ton of money in 2020?
Didn’t everyone make winning bets in 2020?😳🤷🏻♂️