North American News
S&P/Nasdaq indices can’t keep momentum going below 200 hour MA today
- Broader indices close above the 200 hour MAs
The major US indices are all closing lower. For the S&P the index is down for the fourth consecutive day. For the NASDAQ, the index is down for the third consecutive day for the Dow industrial average it has fallen three of the last four trading days.
Both the broader S&P and Nasdaq indices traded below their 200 hour MAs today, but both indices could not sustain momentum below those MAs (and are closing above the MA levels).
- For the Nasdaq, the 200 hour MA came in at 11012.24. The intraday low reached 10956.20. The price is closing above that level at 11014.90. That is down -225.04 points or -2.00%
- For the S&P, the 200 hour MA came in at 2920.34. The low reached just below that level at 2918.22. The price is closing above that level at 3941.22. That is down -57.61 or -1.44%
- For the Dow, the index approached its 200 hour MA at 33341.12, but fell short with an intraday low at 33418.59. The late day rally took the closing level up to 33596.52. That is still down -350.61 points or -1.03%.
Meta was a big loser with a decline of -$8.35 or -6.82% at $114.08
Energy got hit today as oil prices reached the lowest level this year. The index fell -2.65% on the day. Communications fell -2.56%. The information sector fell -2.14%. The only gainer among the 11 S&P sectors, was Utilities which rose 0.66%.
Meta shares filled the gap and now they’re falling away
- Meta technical analysis with shares down nearly 5%
Shares of Facebook parent Meta are dragging down the Nasdaq today with a 0.7% decline.
There are stories circulating about content moderation and that’s the headline reason for the decline however I think the technicals are playing a big part here. The Meta chart gapped lower on earnings in late October, prompting CNBC’s Jim Cramer to offer a tearful apology to longs in one of the more-obvious bottoms you’ll ever see.
Meta began to fill the gap in the second week of October and yesterday it completed the job before reversing lower with the rest of the market. The technical close of the gap was the signal for longs to take profit or for shorts to pile in (take your pick) and shares are down 4.9%. today.
So what’s next? The company came off the bottom after announcing job cuts and it’s still a fairly cheap company. I suspect it will drift back to $110 initially and then trade around $100 until we get signs of a hard/soft landing in the economy and the advertising knock-ons that could go with it.
It would take a wider rout in the market to send it through the November lows.
Atlanta Fed GDPNow estimate for Q4 growth rises to 3.4%
- Up from 2.8% on December 1
In the Atlanta Fed’s own words:
“The GDPNow model estimate for real GDP growth (seasonally adjusted annual rate) in the fourth quarter of 2022 is 3.4 percent on December 6, up from 2.8 percent on December 1. After recent releases from the US Census Bureau, the US Bureau of Labor Statistics, and the Institute for Supply Management, increases in the nowcasts of fourth-quarter real personal consumption expenditures growth and fourth-quarter real government spending growth from 3.2 percent and 0.8 percent, respectively, to 3.7 percent and 1.1 percent, respectively, were slightly offset by a decrease in the nowcast of fourth-quarter gross private domestic investment growth from 2.0 percent to 1.7 percent. Also, the nowcast of the contribution of the change in real net exports to fourth-quarter real GDP growth increased from 0.16 percentage points to 0.37 percentage points.”
Commodities
Gold consolidates
- 200 hour MA tries to hold support
The price of gold is waffling up and down today with a high at $1780.90 and a low at $1766.90. The consolidation comes after the precious metal fell -1.6% yesterday. The price today is little changed at +0.11% at $1770.51.
Technically, looking at the daily chart, the price decline yesterday came after the spot price extended above the 200 day moving average and closed above for two consecutive days. Yesterday when a new high was made, and failed, buyers turn to sellers leading to the sharp decline and the move back below the 200 day moving average at $1794.20. The price also fell back below the 38.2% retracement at $1788.92. Getting back above both those levels is needed to increase the bullish bias.
What next?
Although there is a reluctance to move lower, the bounce higher today also stalled well ahead of the 100 hour moving average at $1785.07.
The price is currently back down sniffing the 200 hour moving average and the 50% of the move up from the November 23 low between $1767 and $1769.
If the price can break below that area with momentum, I would expect selling to intensify.
WTI crude oil falls to the lowest level since December 27, 2021
- Price dips below the low price from November 28 at $73.62
The price of WTI crude oil futures are trading at the lowest level since December 27, 2021. In the process the price fell below the low price from last week at $73.62. The low just reached $73.52. The price is down over 43% from its March high at $129.42.
EU News
European equity close: Moderate losses led by Germany and Italy
- Closing changes in the main European markets
- Stoxx 600 -0.6%
- German Dax, -0.7%
- France’s CAC, -0.3%
- UK’s FTSE 100 -0.5%
- Spain’s Ibex -0.5%
- Italy’s FTSE MIB -0.8%
Other News
Morgan Stanley cuts 2% of staff according to CNBC sources
Morgan Stanley is reported to be cutting 2% of staff. This is according to CNBC sources.
Earlier today, Pepsi announced they were cutting staff as well. The layoff contagion can beget other layoffs as corporations question their own hiring and staffing levels. Like with the hot market of the last few years where companies were fighting each other for staff, the pendulum can swing the other way as well
The issue with this cycle is the participation rate and available workers are less. However, companies seem to be more comfortable with a trim of staff to prepare for the expected slowdown.
Cryptocurrency News
Crypto lender Nexo announces departure from the United States following fallout with regulators
- Nexo had been attempting to find common ground with the state and federal regulators for the last 18 months.
- Nexo halted access to its Earn Interest Product to eight US states on Tuesday.
- Nexo announced their departure at a time when regulators and TradFi players are intensifying their approach toward crypto regulations.
Following FTX’s collapse, many crypto companies have borne the brunt of the United States regulators, but Nexo became the first one to stand up against them. Consequently, Nexo also announced a decision that surprised the crypto space.
Binance gains from FTX collapse as trading activity surges by 30% in November
- Binance led the exchange market trading volume, which saw an increase to $705 billion last month.
- Binance has emerged as a key industry entity with the Proof of Reserves and Industry Recovery Fund initiatives.
- Binance Coin price could be looking at a 14% recovery if it manages to reclaim the $311 resistance level.
Binance is known as the biggest cryptocurrency exchange for its daily trading volume, but over the last few weeks, it has even justified itself as one of the biggest crypto market players. Following a sale of all of its FTT holdings and the subsequent collapse of FTX, Binance has come out on top.
Binance sees growth
Binance noted a significant increase in the daily traded volume over the month of November. The fall of FTX triggered a rise in user participation, benefitting some of the biggest exchanges, including Binance, Coinbase, Kraken etc.
Join Our Whats App Group for all the latest stock market news
https://chat.whatsapp.com/KuCI3obDFfz7J6QI8tK1fX
