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China's Missing Data

Happy hump-day folks! The gains continued for the S&P yesterday with the index crossing 3700 points as it appreciated just over 1% by close. As the reporting period continues, our earnings-fueled long recommendation on $BAC has yielded - remember if you’re trading our picks, mind the recommended timeline, don’t risk too large a portion of your account value in a single position and always trade with a stop loss!


Markets in Review

The market tone being set today is quite different from that of yesterday, the bears are back and they’re selling the bounce as indicated in the pre-market with futures on the Dow, S&P and Nasdaq trading down 60, 72 and 70 bps at time of writing. Speaking of sentiment, US bullishness is sitting close to lows with only about 20% of investors holding an optimistic market outlook. The S&P has put some solid distance between itself and its closest support level - if oil prices hold, chances are that continued positive management guidance for Q4 will breed the buying needed to keep this price level as we finish out the year.


Long: Krispy Kreme (DNUT-NASDAQ) | Timeline: 2 days

We’re issuing a long idea on Krispy Kreme this morning as the news broke that McDonald’s will begin a trial of offering Krispy Kreme donuts within some US chains. This news provides an extremely large growth opportunity for the chain especially if the test is successful, and this pilot program extends to more stores nationwide.

The stock has already jumped in the premarket, however, we believe there is more room to run. In terms of the technicals, MACD and momentum are also on the company’s side as they sit at 0.19 and 1.33 respectively. On the RSI front, the company is approaching overbought but still remains in neutral territory.


Zooming out...

What’s Going on With China?

As we head further into the fourth quarter many nations have begun reporting their third Quarter financial data, with the notable exception of China. While China’s data was supposed to be reported earlier this week, they've refused to release the numbers without giving an explanation.

It’s interesting for this to take place now after harsh COVID lockdowns and a real estate crisis have taken their toll on the nation's economy. More interestingly, as the CCP party conference is underway.

In all likelihood, this move to delay reporting is related to the ongoing vote underway to secure Xi’s third term. Whether it will work or not, remains to be seen.

Nord Stream Pipeline Damage Revealed

The first images of the Nordstream Pipeline explosions have been released by the Danish authorities. It proves that whatever took place at the bottom of the sea was extremely deliberate, as a 50 foot, or roughly 8m long, section of the pipeline is missing in one area.

These revelations bring an added barrier of sophistication when considering possible suspects, as a guilty party has yet to be found.


Making headlines...

Truss Warns UK Tories Not to Defy Her on Fracking

  • Prime Minister Liz Truss’s government issued a stark warning to Conservative MPs not to back an opposition motion on fracking, as party managers struggle to control mutinous lawmakers. (Full Story)

Amazon workers reject union in NY state in blow to organizing effort

  • Inc (AMZN.O) workers rejected organizing a New York state warehouse by a nearly two-to-one margin on Tuesday, handing another defeat to the fledgling labor union that had aimed to build momentum in its cross-country campaign.(Full Story)

Surprisingly Hot Canada Inflation of 6.9% Adds to Rate Pressure

  • Canada’s inflation rate came in stronger than expected in September despite lower gasoline prices, with stickier underlying pressures likely to keep the Bank of Canada on an aggressive rate-hiking path.


Chart of the Day: UK Power Prices Stabilizing


“Never write a letter if you can help it, and never destroy one!”

- Sir John A Macdonald


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