Weekly Market Report — 5/15/22
Weekly Market Report — The S&P 500 ended the week down -2.41%, but was even lower at various times this past Wednesday and Thursday. Eventually, a rally on Thursday came, and a gap up on Friday, but it wasn’t enough to pull the index into green for the week. All sectors pulled back except for consumer staples.
source: sector tracker
The Weekly Crypto Report — Trading around 30K, BTC is down over -17% the past week, and trades 40% below the 200 day exponential moving average (red line).
Most of the news this week came from the destabilization of the stablecoin UST, and it’s partner Terra/Luna. UST is supposed to be pegged to the US Dollar, but went from $1 in value to as low as $0.05. Terra/Luna went from $88 on 5/4 to $0.0002 at the time of this writing. Many exchanges have halted Terra/Luna from trading all together. The lesson here is to diversify and never put all your eggs in one basket.
I continue to accumulate crypto such as BTC and ETH on these dips with the Gemini Crypto rewards credit card.
Finviz Weekly Market Heatmap
Since this is a weekly heatmap, you won’t really see much of the green we saw towards the end of the of this week. We are still down on a weekly basis but there are some interesting opportunities out there for the long term investors in both growth and value stocks.
Interest Rate Watcher
All yields were down this week with the 10 year down a whopping 6.82%.The yield curve (distance between 10, 30, and 2 year), looks to be steepening. The 10 year is < 3% now, but for how long?
The VIX ended the week below a 30 reading. Is the worst over, or will there be another leg up this next week? Time will tell.
The Fear & Greed Index worsened from a reading of 16 one week ago to 12 this week.
The US Dollar
The US dollar gained almost 1% this week. Betting the dollar will mean-revert lower, I sold an out of the money call option on the Small Dollar Futures index, which I have outlined in our premium service.
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