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”.,
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


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

rise while gold prices GC00
are below.

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Rockstar Games.

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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:


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AMC entertainment


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AMTD Digital


AMC Entertainment preferred stock


ChargePoint Holdings


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