Written by Gary
Buy The Dip insanity: recovery from sudden market drops is fastest on record (SPY -1.0%). DOW’s nearly 200-point fall led by losses for Intel, Apple Inc. stocks.
Here is the current market situation from CNN Money | |
 | North and South American markets finished mixed as of the most recent closing prices. The Bovespa gained 1.21%, while the IPC led the S&P 500 lower. They fell 1.14% and 0.06% respectively. |
What Is Moving the Markets
| Here are the headlines moving the markets. | |
| U.S. LNG Exports Jump To Record In H1 2021Rising spot demand in both the winter and summer months from Asia and Europe and lower U.S. benchmark gas prices than international prices resulted in record-high American liquefied natural gas (LNG) exports in the first half of this year, the U.S. Energy Information Administration (EIA) said on Tuesday. U.S. LNG exports jumped to an average of 9.6 billion cubic feet per day (Bcf/d) between January and June 2021, up by 42 percent compared with the first half of 2020. In the summer of last year, U.S. exports of LNG had dropped to record lows due |
| Japan Energy Transition Threatens LNG DemandJapans ambitious energy shift to renewables is threatening future demand for liquefied natural gas as the country is the worlds largest importer of the commodity, Bloomberg reports. Japan last week unveiled plans to boost renewable power generation capacity twofold over the next ten years, cutting the share of fossil fuels in its energy mix to less than 50 percent. The plan will involve halving the amount of energy Japan generates from liquefied natural gas over the period. Bloomberg quotes traders and analysts as saying these ambitions |
| Libya Looks To Boost Oil Production To 1.6 Million Bpd In 2022Libya could boost its oil production to 1.6 million barrels per day (bpd) by the middle of 2022 if the industry has the necessary funding, Libyas Oil Minister Mohamed Oun told Italian news agency Agenzia Nova in an interview published this week. Currently, the North African producer exempted from the OPEC+ cuts pumps around 1.2 million bpd. According to secondary sources in OPECs latest Monthly Oil Market Report, Libyas crude oil production averaged 1.163 million bpd in June, up from 1.157 million bpd in May. Since getting |
| Tesla Smashes Expectations With Q2 EarningsTesla reported over $1 billion in net profits for the second quarter, beating analyst expectations for its financial performance along with record production and delivery numbers. The second-quarter net profit figure compares with $438 million booked for the first quarter. Revenues hit $11.96 billion in the second quarter, up from $10.39 billion in the first quarter. The company acknowledged the supply chain challengesnotably semiconductor shortagesas still present in the second quarter, pointing out that With global vehicle |
| Iraq Wants Other U.S. Oil Company To Replace ExxonIraq wants another U.S. company to replace Exxon as a shareholder in the West Qurna 1 field, one of the country’s largest after the supermajor leaves the country. “Exxon Mobil is considering exiting Iraq for reasons that are to do with its internal management practices, decisions, and not because of the particular situation in Iraq,” Prime Minister Mustafa al-Kadhimi told media after a meeting with President Joe Biden, as quoted by Reuters. Exxon, which holds a $32.7-percent interest in West Qurna 1, has been looking for a buyer with plans to exit |
| Shell Greenlights First Project Since Defeat In Dutch CourtEnergy transition or no, Shell has given the go-ahead of its Whale deepwater project in the Gulf of Mexico, according to a Shell press release on Monday. It would be the first greenlighted project since its defeat in a Dutch court last month that ordered Shell to reduce its emissions targets at a pace quicker than it had planned. Royal Dutch Shell owns 60% of the Whale project, while Chevron owns the remaining 40%. The expected productionset for 2024is estimated at 100,000 bpd, with an estimated recoverable resource volume of 490 |
| Simone Biles drops out of Olympics team gymnastics final as Russian athletes upset USABiles, a gymnastics superstar, left the competition with what USA Gymnastics called a “medical issue.” |
| CDC to reverse indoor mask policy, saying fully vaccinated people should wear them indoors in Covid hot spotsThe CDC is expected to recommend that fully vaccinated people begin wearing masks indoors again in places with high Covid transmission rates, sources say. |
| Travel booking behemoth Amadeus is partnering with travel app developer Hopper, adding fintech offerings to product lineTravel giant Amadeus adds fintech functionality from travel app developer Hopper, which is eyeing future development of more financial products. |
| Many states are holding lotteries with cash or other prizes to boost vaccination rates. Here’s how much winners could owe in taxesWhether cash or another type of prize, the IRS expects winners of any lottery to pay taxes on the value of their jackpots. |
| NBA’s Oklahoma City Thunder arena will be called Paycom Center in 15-year dealThe agreement will include in-arena signage and a rooftop sign for the Oklahoma City downtown arena. |
| World’s 20 best airlines are named by air safety websiteFor the first time, the ratings review site AirlineRatings.com factored Covid-19 safety measures into its annual rankings of the top airlines in the world. |
| Global shipping industry disrupted again, this time by floods in Europe and ChinaThe floods in China and Europe are yet “another body blow” for global supply chains, the CEO of a shipping firm told CNBC on Monday. |
| Lack of audience playing into U.S. women’s gymnastics team’s second-place Olympic performance, Dominique Dawes saysThree-time Olympian Dominique Dawes delivers her insights into the women’s gymnastic team’s second-place qualifying performance behind Russia. |
| Jim Cramer sees a ‘second reopening’ trade in the recovery stocks“Once we start getting over this new outbreak, they’ll be the place to invest,” the “Mad Money” host said of travel, leisure, retail, energy and other stocks. |
| Cramer says three restaurant stocks can outperform as Covid fears rise“These stocks are exactly what you want to own if the great reopening is hitting a delta variant-induced snag,” the “Mad Money” host said. |
| Olympics ratings rebound following the drop in opening ceremonies viewershipThe Tokyo Games also averaged roughly 15.3 million total viewers for Saturday’s primetime coverage, including softball and skateboarding competitions. |
| The Creator Of The Bond VIX Pens An Open Letter To The FedThe Creator Of The Bond VIX Pens An Open Letter To The Fed Submitted by Harley Bassman, creator of the bond VIX and author of the Convexity Maven blog Open Letter To The Fed (pdf link) In 1986 Herbert Stein, a University of Chicago economist and onetime Chairman of the President’s Council of Economic Advisors, modestly proposed Stein’s Law: œIf something cannot go on forever, it will stop. As such, with similar modestly, let me propose a few ways for the Federal Reserve Bank (FED) to œtrim the sails of their monetary support programs before another œChuck Prince moment arrives with a deafening silence.As a reminder, we have a massive debt problem in the US, both public and private; and there are only two paths out of such a situation, either default or inflate, where inflation is simply a slow-motion default.Thus, the FED’s program of Quantitative Easing (QE) was well-intentioned, and in fact it did create inflation; such a pity this inflation occurred in asset prices instead of Service (Labor) wages as intended. Clever quants will say that a statistically significant mathematical correlation does not exist between money creation and financial asset prices;but who are you going to believe, them or your lying eyes? Below the blue line is the balance sheet assets of the major Western Central Banks, while the red line is the value of theirGlobal financial market. |
| Stocks, Bond Yields, & The Dollar Are All Diving After ‘Delta’-Masking-Mandate HeadlinesStocks, Bond Yields, & The Dollar Are All Diving After ‘Delta’-Masking-Mandate Headlines Just when you thought it was over… they reel you back in to wearing masks and shrug off all the science they said was settled. The stock markets do not like the news as growth is slammed (also not helped by contagion from China tech). Nasdaq ansd Small Caps are leading the plunge. This is Nasdaq’s biggest daily drop since early May…
The dollar is diving… |
| “Buy The Dip” Insanity: Recovery From Sudden Market Drops Is Fastest On Record“Buy The Dip” Insanity: Recovery From Sudden Market Drops Is Fastest On Record Something odd is taking place beneath the market’s calm surface: following up on our recent observations of index Skew hitting an all time high, Bank of America’s derivatives team writes that even as the S&P has made new highs, volatility markets are not sending the same œall clear signal. Consider that: The VIX has been rising from its 2-Jul closing low of 15.07, even as the S&P 500 has been making new highs, furthering the bank’s call that the summer lows for vol are in and the VIX should average in the mid-to-high teens this year. Comparing vol metrics across the 12-Jul and 23-Jul S&P peaks, risks implied by S&P options / VIX futures have all risen, particularly in the 1-month bucket vs. shorter (e.g., 1-week) and longer (e.g., 3-month) expiries.
A closer look at the volatility term structure reveals that the S&P option … |
| Watch: Fauci, CNN, White House, Newsom, & Cuomo All Ratchet Up Attacks On Unvaccinated AmericansWatch: Fauci, CNN, White House, Newsom, & Cuomo All Ratchet Up Attacks On Unvaccinated Americans Authored by Steve Watson via Summit News, Unvaccinated Americans were the talking point of the day on Monday with a slew of figures slamming those who have chosen not to take the coronavirus jabs, assigning blame to them for America ‘going backwards’, likening them to murderers, and suggesting that they are to blame for more deadly variants of the virus emerging.
First up, the White House with Press Secretary Jen Psaki claiming that America is in reverse because œthere are still a large population of people in this country who are unvaccinated ” and we have the most transmissible variant that we’ve seen since the beginning of the pandemic that more people are getting sick with Covid. Psaki announced that travel restrictions will not be lifted because of the Delta variant: |
| Tesco offers £1,000 joining bonus for HGV lorry driversThe supermarket chain is deploying the recruitment tactic amid a shortage in lorry drivers. |
| Covid: Insurance threat for pinged holidaymakersSome travel insurance policies will not cover cancellation costs for travellers told to self-isolate. |
| Vaccine access deepens divide between rich and poor nationsEconomic prospects have diverged further due to differing access to Covid vaccines, the IMF says. |
| IndusInd Bank Q1 results: Net profit surges 112% YoY to Rs 975 crore, beats estimatesThe lender’s total income in the reported quarter rose 7 per cent on-year to Rs 9,356 crore. |
| Glenmark Life Sciences IPO subscribed 2.8 times on Day 1Most analysts are positive on the company’s future prospects and suggest subscribing to the issue. They believe the company, which is a spin off of Glenmark Pharma, is well placed in the Active Pharmaceutical Ingredient (API) business. |
| Market Movers: Why Dr Reddy’s fell & took other drug stocks down with itThe biggest trigger for the nose bleeding fall in Dr Reddy’s Labs stock was hidden away in the notes to account of the company’s P&L statement. |
| NewsWatch: Dow win streak at risk ahead of tech results as China crackdown threatens rallyU.S. stocks trade moderately lower Tuesday morning ahead of quarterly results from some of the most prominent names in the technology sector, with a Chinese regulatory crackdown threatening to weaken the investing mood on Wall Street |
| : COVID-related global chip shortage will make back-to-school shopping more expensiveFamilies say they plan to spend an average of nearly $850 on back-to-school shopping this year, up $59 from 2020. |
| Market Snapshot: Dow win streak at risk ahead of tech results as China crackdown threatens rallyU.S. stocks trade moderately lower Tuesday morning ahead of quarterly results from some of the most prominent names in the technology sector, with a Chinese regulatory crackdown threatening to weaken the investing mood on Wall Street |
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