✅ 𝗚𝗔𝗦 𝗪𝗲𝗲𝗸𝗹𝘆 𝟮𝟲𝘁𝗵-𝟯𝟬𝘁𝗵 𝗝𝘂𝗹𝘆 𝟮𝟬𝟮𝟭 ✅

𝗜𝘁 𝘄𝗮𝘀 𝗮 𝘀𝗹𝗶𝗴𝗵𝘁𝗹𝘆 𝗰𝗼𝗿𝗿𝗲𝗰𝘁𝗶𝘃𝗲 𝘄𝗲𝗲𝗸 𝗳𝗼𝗿 𝗨𝗦 𝗲𝗾𝘂𝗶𝘁𝗶𝗲𝘀, 𝗯𝘂𝘁 𝗮𝗹𝗹 𝗶𝗻 𝗮𝗹𝗹 𝗮𝗻𝗼𝘁𝗵𝗲𝗿 𝗴𝗼𝗼𝗱 𝗺𝗼𝗻𝘁𝗵, 𝟲𝘁𝗵 𝗺𝗼𝗻𝘁𝗵 𝘂𝗽 𝗶𝗻 𝗮 𝗿𝗼𝘄. 𝗜𝘁 𝘄𝗮𝘀 𝗮𝗹𝘀𝗼 𝘁𝗵𝗲 𝗯𝘂𝘀𝗶𝗲𝘀𝘁 𝘄𝗲𝗲𝗸 𝗼𝗳 𝟮𝗤𝟮𝟭 𝗲𝗮𝗿𝗻𝗶𝗻𝗴𝘀 𝘀𝗼 𝗳𝗮𝗿. 𝗔 𝘄𝗲𝗮𝗸𝗲𝗿 𝘄𝗲𝗲𝗸 𝗳𝗼𝗿 𝘁𝗵𝗲 𝗨𝗦 𝗱𝗼𝗹𝗹𝗮𝗿 𝘄𝗲𝗹𝗹 𝗽𝗼𝘀𝘁 𝘁𝗵𝗲 𝗙𝗢𝗠𝗖 𝗺𝗲𝗲𝘁𝗶𝗻𝗴.

We got earnings from a big bunch of companies, influding FAANG. The quarter was expected to be a big one on YoY dynamics and it was in most cases. Still stocks mostly corrected as investors were selling the facts and tried to position into the next bigger move. $AMZN (Amazon) was by far the biggest negative disappointment. A miss like this does not happen ofted for a stock of that enormous size. Let’s get to details…

L𝗮𝘀𝘁 𝘄𝗲𝗲𝗸

👉 On Monday $SPX500 managed to make new ATH. For the rest of the week really the index hovered around with relatively small changes up and down with a slight falling tendency.
👉 Tuesday after the bell Apple, Microsoft and Alphabet all beat expectations. Profit taking was the theme though the next day. The market is just at a level where profit-taking is tempting int eh short term for some.
👉 The Chinese stocks continued to be rattled as well, as the financial watchdog’s crackdown on the biggest domestic tech names continued. There were clear signs of panic selling with some major stocks like Tencent, Alibaba, Baidu and others being down 5-7%. Many Chinese bluechips are trading at absolute bargains right now and we used this opportunity to increase our GlobalLeaderPortfolio (GLP) exposure to this market. More on this here: etoro.tw/3zIafy5
👉 Mr.Powell&Co were in the spotlight on Wednesday obviously. The much-awaited FOMC meeting brought no change in the Fed policy, nor its prospects in the upcoming future. The Fed Put is still firmly in place. More on the subject here: etoro.tw/3zMBSpM
👉 Thursday’s story No.1 was Robinhood debut, which turned out disappointing. The stock closed lower (-8,4%) as the vast majority of IPOs so far this year of size bigger than USD2bn. I wrote about it here: etoro.tw/3CanLwK
👉 $AMZN posted its 2Q21 earnings on thrusday after the close. Revenues were USD113bn, short of expectations. EPS was USD15,12 vs. USD12,3 exp. Stock sold off heavily on Friday. A few price cuts followed as well, liek form Morgan Stanely for instance.
👉 On Friday we also got reports from Chevron and ExxonMobile. Both above expectations. Both sockt slid though.
👉 “Some momentum signals are suggesting fatigue, and reactions to earnings suggests much fundamental good news is priced in,” wrote Mike Santoli, CNBC’s senior markets commentator.
👉 𝙀𝙛𝙛𝙚𝙘𝙩𝙞𝙫𝙚 𝙬𝙚𝙚𝙠𝙡𝙮 𝙞𝙣𝙙𝙚𝙭 𝙘𝙝𝙖𝙣𝙜𝙚𝙨: $SPX500 -0,4%, $NSDQ100 -1%, EuroStoxx600 +0%, $GER30 -0,8%, JPN225 -1%.

𝗢𝘁𝗵𝗲𝗿 𝗺𝗮𝗿𝗸𝗲𝘁𝘀 𝗲𝘃𝗲𝗻𝘁𝘀:

👉 𝘽𝙤𝙣𝙙𝙨: the US yield curve (10y-FF) at 123bps, the German curve (10Y Bunds-3M) at 21 bps. EuroArea AAA-rated bonds yield at 23bps. High Yield Spreads at 3,2.
👉 𝘾𝙤𝙢𝙢𝙤𝙙𝙞𝙩𝙞𝙚𝙨 (𝙚𝙭 𝙤𝙞𝙡): $GOLD +0,8% on week.
👉 𝙊𝙞𝙡: +2,3% on week
👉 𝘾𝙪𝙧𝙧𝙚𝙣𝙘𝙞𝙚𝙨: DXY (Dollar Index) -0,9% on week, EURUSD +0,8%.

𝗠𝗮𝗷𝗼𝗿 𝘀𝘁𝗼𝗿𝗶𝗲𝘀 𝗳𝗼𝗿 𝗻𝗲𝘅𝘁 𝘄𝗲𝗲𝗸:

👉 Chinese Manufacturing PMI for July (exp 51) on Monday
👉 US Non-Farm Payrols for July (exp 900k) on Friday
👉 We’re heading into a historically seasonally weaker period of the year (Aug-Oct)

Best, GlobalAlphaS

Disclaimers: None of the ideas, views and thoughts presented here shall ever be taken as a recommendation to buy or sell stocks,bonds,FX,commodities or any other financial instruments as stated in REGULATION (EU) No 596/2014 OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL of 16 April 2014 on market abuse (market abuse regulation) and repealing Directive 2003/6/EC of the European Parliament and of the Council and Commission Directives 2003/124/EC, 2003/125/EC and 2004/72/EC or the Polish Act of 10 February 2017 amending the act on trading in financial instruments and some other acts. The article is for educational reasons and purely presents private views of the author, thus the author shall not be held accountable for any losses of a third party resulting from any potential trading activities in any instruments, both specifically or by category of assets. The author uses his best knowledge and data from sources believed to be reliable, but makes no representations as to the accuracy of the data.Full Disclaimers&Liability Limitations page.