Solar stocks soared today with ENPH making new highs. The entire sector saw inflows today and held the highs of the day. This is the first time we have seen breakouts of a sector hold in over a month. The European energy margin call of $1.5 Trillion rattled the market and send crude oil down $5 dollars today. The issue with a margin call of this magnitude is we do not know the full scope yet. Yesterday it was announced that the energy firms were out of position when Russia shut down Nord stream 1 to Europe. This spike natural gas causing huge losses in the hedges of the energy firms. We are seeing the beginning of the unwinding. Issues of this size can take weeks to work their way through the system. This will add wild swings to commodity prices. Focus specifically on the crude oil market. The price of oil is tied directly to our GDP not only directly but indirectly. When oil prices drop consumers can buy more goods and companies pay less for transportation. Both of these affect corporate earnings in a positive way. It is possible that the drop in oil prices will actually help the underlying earnings of the SPY and help to support the Index. We saw this start today. Indexes rallied across the board as the price of oil dropped. While solar names acted very well , we saw other sectors start to show inflows of capital as well. Retail did very well. We saw some of the names such as TGT WMT BJ AMZN all have positive moves higher. Some of them significant. Obviously , we need more time to see if this is a one time occurrence but its worth noting. Tomorrow at 9:10 am Powell will speak. His last speech at Jackson hole sunk the market after he appeared hawkish. Surprisingly bonds actually rallied ahead of tomorrows meeting. We saw buying in treasuries , investment grade and high yield bonds. Usually, bond traders will wait but they seem to be anticipating a possible dovish stance. We will find out soon enough. In tonight’s video below. I go over several trade ideas, the huge move in the solar sector, the correlation of the SPY to crude oil as well as what to expect tomorrow. Considering these turbulent times its worth knowing what to expect. Let’s get to it!
đŸ“ˆSolar Stocks Rally into Powell Speech!
đŸ“ˆSolar Stocks Rally into Powell Speech!
đŸ“ˆSolar Stocks Rally into Powell Speech!
Solar stocks soared today with ENPH making new highs. The entire sector saw inflows today and held the highs of the day. This is the first time we have seen breakouts of a sector hold in over a month. The European energy margin call of $1.5 Trillion rattled the market and send crude oil down $5 dollars today. The issue with a margin call of this magnitude is we do not know the full scope yet. Yesterday it was announced that the energy firms were out of position when Russia shut down Nord stream 1 to Europe. This spike natural gas causing huge losses in the hedges of the energy firms. We are seeing the beginning of the unwinding. Issues of this size can take weeks to work their way through the system. This will add wild swings to commodity prices. Focus specifically on the crude oil market. The price of oil is tied directly to our GDP not only directly but indirectly. When oil prices drop consumers can buy more goods and companies pay less for transportation. Both of these affect corporate earnings in a positive way. It is possible that the drop in oil prices will actually help the underlying earnings of the SPY and help to support the Index. We saw this start today. Indexes rallied across the board as the price of oil dropped. While solar names acted very well , we saw other sectors start to show inflows of capital as well. Retail did very well. We saw some of the names such as TGT WMT BJ AMZN all have positive moves higher. Some of them significant. Obviously , we need more time to see if this is a one time occurrence but its worth noting. Tomorrow at 9:10 am Powell will speak. His last speech at Jackson hole sunk the market after he appeared hawkish. Surprisingly bonds actually rallied ahead of tomorrows meeting. We saw buying in treasuries , investment grade and high yield bonds. Usually, bond traders will wait but they seem to be anticipating a possible dovish stance. We will find out soon enough. In tonight’s video below. I go over several trade ideas, the huge move in the solar sector, the correlation of the SPY to crude oil as well as what to expect tomorrow. Considering these turbulent times its worth knowing what to expect. Let’s get to it!