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Weekly Memorandum 7/11/2022

Stocks recovered nicely last week after the holiday weekend, and we saw notable leadership from the Nasdaq. Leadership was also observed from risk-on sectors like consumer discretionary, tech, and communications. Special attention should also be paid to healthcare coming out of any imminent low. This week will tell us whether it was a matter of short-covering, or the start of something more significant.


Crude Oil was down but closed off the lows of the week. Meanwhile, Treasuries rallied to a new high, but then reversed all their gains and closed lower - this is bearish price action. King Dollar continues to reign supreme, as the Euro tumbled to a new multi-decade low. The Yen is making new lows this morning too.


Need to keep an eye on commodities because copper is saying recession. At the same time, other agricultural markets are trying to solidify important lows. Cryptocurrencies and metals continue to exhibit technical weakness as well.


We have key inflation data set to emerge this week. Following the strong payroll report from Friday, a high inflation reading will likely give the Fed further impetus to tighten monetary policy even more.

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