Daily Market Update July 20, 2022

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Daily Brief:

S&P closed the day in the green, hitting a high of 3959. The VIX (volatility index) closed the day down 2.65% at 23.73. We had another big bear market rally today with all major index closing big on the day. Commodities on the other hand were mostly down on the day.

Major moves of the day:

Bond Yields

30YR closed at 3.16%

10YR closed at 3.03%

2YR closed at 3.25%

Yield curve is completely inverted with a 22 basis point inversion. The spread continues to get wider.

Commodities

Oil ended the day down -1.57% at $102.5.

Gold finished down at $1695

Natural Gas finished huge on the day up 8.73% at $7.89

Steel finished up 3% on the day at $3826 and down 13% on the month.

Nasdaq closed up 1.58% on the day at 11,897 and Russel 2000 closed up at 1827, up 1.56% on the day.

Big Tech (Tesla, Microsoft, Amazon, Meta, Google, Netflix, Apple) all had great days. Netflix had a big move up of 7.35% closing at $716. China (SSEC) closed up on the day at 3304.

Europe (Italy, France, Germany, Poland) all finished down on the day.

The Dollar Index closed up 0.35% at 107.06.

Crypto BTC is about even on the day at $23,000. ETH flat on the day at $1,500. MSTR up 8% closing at $288 and COIN up 14% closing the day at $75. Massive days for crypto equities, providing some good short opportunities.

Thoughts on today and going into Tomorrow

I added to some of my shorts today: HYG, JNK, GOOS, NFLX, XLY. I am adding slowly each day as I don’t know how long this bounce will last, but I definitely have not covered any shorts yet. I continue to watch very closely. The dollar is still very strong and bond yields are inverted so there are no signs of this bear market being over. Let’s see what happens tomorrow.

That’s all for now,

Wassim