The mighty dollar could be on the verge of collapse, says this strategist, who offers stocks to watch on both sides. – Market observation | Jewelry Dukan

Technical analysts are warning that markets are poised to retest June lows of 3,640 on the S&P 500 SPX
in the spotlight.

“Investors are much less comfortable with this tighter liquidity environment as many recognize it will last much longer than originally anticipated, ultimately leading to the current falling demand for riskier assets,” said Pierre Veyret, Technical Analyst at ActivTrades.

One result has been a steady push from investors into the dollar, which strategists at Citigroup have described as “one of the few places to hide.” While the greenback looks overvalued and a turning point is inevitable, Citi says either “global growth expectations will have to reverse or the Fed will have to pivot” for that to happen.

Our call of the day comes from Evercore ISI chief equity and quantitative strategist Julian Emanuel, who believes the Fed will pull the dollar lower sooner than many think.

Emanuel tells customers in a note that last week’s FedEx FDX
Plunging earnings and the inverted yield curve between 2- and 10-year Treasuries are warning signs of a global recession reaching US shores.

With that, Emanuel expects that “the Fed could (and should) guide markets on Wednesday that the ‘data dependency’ for the central bank’s Nov. 1-2 FOMC decision is 0-75 basis points in hikes, not 50-75 .” With the Fed already eyeing huge tightening and the potential for chaotic midterm elections, the strategist believes the US dollar will “continue to dampen its strength”.

The dollar index is up about 1.3% so far in September after a whopping 2.6% gain in August.

Evercore ISI

The Evercore team provides a list of Dollar-Down Denominators – S&P 500 SPX
Names that could outperform if the dollar falls, alongside buck backsliders stocks that could underperform if the dollar weakens.

From the list of “denominators” are export-oriented sectors with more than 70% foreign earnings and high short interest, which have underperformed their peers in 2022. NVIDIA NVDA,
Linden LIN,
Mondelez International MDLZ
and Estee Lauder EL
are just a few of those names.

Evercore ISI

Verizon Communications VZ is on the list of “recidivists”.,
AT&T T,
Union Pacific UNP
and Lockheed Martin LMT,
to name a few.

Evercore ISI

So far for Monday it’s bucks up.

Hear from Ray Dalio at the Best New Ideas in Money Festival on September 21-22 in New York. The hedge fund pioneer has strong views on where the economy is going.

The markets

It’s not just stock futures ES00

YM00

NQ00.
Oil CL
sinking while bitcoin BTCUSD
and Ethereum ETHUSD
prices will be hit particularly hard after the latter’s so-called “merger” last week. Bond Yields BX:TMUBMUSD02Y

BX:TMUBMUSD10Y
rise while gold prices GC00
are below.

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The Buzz

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The National Association of Home Builders Sentiment Index is due a week after the market opens, which will see plenty of data across the sector, with existing home sales and housing starts. Barring Wednesday’s Fed decision, September PMI data will be out later in the week.

A hacker claiming to be behind the recent Uber UBER
A data breach may have leaked dozens of gameplay videos of Take-Two Interactive’s upcoming video game Grand Theft Auto VI by TTWO
Rockstar Games.

President Joe Biden declared the pandemic over in a Sunday interview, to the surprise of some of his health advisers. He also said the US would defend Taiwan against a Chinese invasion.

The graphic

Zoom video communication ZM,
was not only a “poster child” for stocks hitting new lows on the Nasdaq, “it was one of the best leading indicators of where the market as a whole is going,” says Michael Kramer, founder of Mott Capital Management.

The video conferencing group, which surged during the pandemic, hit a new low on Friday and “is probably not done falling either, with significant support to follow at $76.45 and then $70,” he said.

Here is his chart and the full blog post.

Mott capital

The tickers

These are the most searched tickers as of 6 a.m. Eastern Time:

ticker

security name

TSLA

Tesla

GME

GameStop

AMC

AMC entertainment

BBBY

bed bath beyond

AAPL

Apple

NEVER

NEVER

HKD

AMTD Digital

MONKEY

AMC Entertainment preferred stock

CHPT

ChargePoint Holdings

AMZN

Amazon.com

Random Reading

queue actually. The couple meet while waiting to see Queen.

A farmer finds a stunning Byzantine-era mosaic while planting olive trees.

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