• About Us
  • Contact Us
  • Cookie policy (EU)
  • Home
  • Privacy Policy
  • Video
  • Write for us
Today Headline
  • HOME
  • NEWS
    • POLITICS
    • News for today
    • Borisov news
  • FINANCE
    • Business
    • Insurance
  • Video
  • TECHNOLOGY
  • ENTERPRISE
  • LIFESTYLE
    • TRAVEL
    • HEALTH
    • ENTERTAINMENT
  • AUTOMOTIVE
  • SPORTS
  • Travel and Tourism
  • HOME
  • NEWS
    • POLITICS
    • News for today
    • Borisov news
  • FINANCE
    • Business
    • Insurance
  • Video
  • TECHNOLOGY
  • ENTERPRISE
  • LIFESTYLE
    • TRAVEL
    • HEALTH
    • ENTERTAINMENT
  • AUTOMOTIVE
  • SPORTS
  • Travel and Tourism
No Result
View All Result
TodayHeadline
No Result
View All Result

This trader predicted the bond meltdown, tech selloff and oils surge. Heres what she says is coming next. – MarketWatch

May 5, 2022
in News
0
This trader predicted the bond meltdown, tech selloff and oils surge. Heres what she says is coming next. – MarketWatch
0
SHARES
45
VIEWS
Share on FacebookShare on Twitter

Fade the Fed anyone? Stocks are headed south, following a big Wall Street rally stemming from perceptions Federal Reserve Chair Jerome Powell and co. may be less hawkish than markets think.

A short-lived rally won’t be a huge surprise to some. After all, we’ve got 99 problems out there that aren’t exactly in the Fed’s control — supply shortages and rising costs for companies, a continuing war in Ukraine, COVID-19 in China, etc.

Onto our call of the day from the founder of LaDucTrading.com, Samantha LaDuc, who specializes in timing major market inflections. She has been cautious on stocks for a while, and sees a 3,800 finish for the S&P 500
SPX,
-2.69%

this year amid tech floundering and continued growth-to-value rotation.

One of her biggest calls sees crude
CL00,
+1.50%

reaching $160 by summer and $260 within a year, which LaDuc laid out in an interview with MarketWatch on Tuesday. It is one of the few inflation hedges out there, she said.

And a European embargo of Russian oil — the European Union proposed a ban on Wednesday to kick in within six months — will result in spiking oil, bond yields and the U.S. dollar, which will crush U.S. equities and emerging markets, said LaDuc.

As for her track record, LaDuc, who has been an active trader and investor since 2008, predicted in summer 2020 that bonds were done rising, inflation would prove sticky, and energy would outperform tech in 2021. And we have seen all of the above.

“2022 will set the stage for problems that will test our new traders and our old 40-year long macro frameworks. The Fed Put has moved, and since 2013 taper tantrum, I would wager it sits about 20% below current market prices,” she said. That “Put” refers to market and investor belief that the Fed will step in to support stock markets.

“Basically an accommodative Fed reduces volatility. A tightening Fed, by definition, triggers it. With that, value should lose less than growth at the very least if not straight-out outperform,” she said.

But stocks may be the least most important market for investors to watch right now, she said.

“Currently, the yen
USDJPY,
+0.82%

and yuan
USDCNY,
+0.52%

and euro
USDEUR,
+0.73%

are in a race to the bottom. Emerging market panic on higher U.S. yields and tightening Fed is where we should focus our macro lens,” she said. And forex troubles are already seeping into U.S. equity volatility, she said.

What markets are failing to price in right now is higher oil, higher dollar and higher bond yields. So stock markets fall as that “narrative catches up, and then we can stabilize into the end of the year,” said LaDuc. That narrative catches up when “investors start to really question the Fed’s ability to control inflation. That’s when the long end of the curve will really come on.”

And while many on Wall Street see inflation moving lower over the next 12 to 18 months, but she is on the other side of that trade, which explains her belief that oil will keep climbing.

As for that post-Fed rally that may already be over? LaDuc said she doesn’t “see a reason to believe either inflation is under control or the Fed can control it. I believe the bond market has already telegraphed this and oil will make sure everyone listens soon enough.”

The buzz

Post-Fed, the focus will turn to Friday’s nonfarm payroll data, and ahead of that, data is showing weekly jobless claims data rose by slightly more than expected. Meanwhlile, unit labor costs jumped 11.6% and a productivity decline of 7.5% was the biggest since 1947.

Tesla
TSLA,
-6.20%

CEO Elon Musk says he has received $7 billion in equity financing for his proposed Twitter
TWTR,
+3.84%

acquisition from outside investors. Twitter shares are rising on that news. Also Saudi Arabian investor Prince Alwaleed bin Talal, who previously dismissed Musk’s Twitter bid, plans to keep his 35 million share stake.

Read: Elon Musk suggested getting into the lithium business, and these surging stocks show why

ConocoPhillips
COP,
+1.44%

reported a profit beat and Cardinal Health
CAH,
-2.39%

is falling on an earnings miss. E-commerce stocks Shopify
SHOP,
-17.29%

and Etsy
ETSY,
-15.17%

are down on results. EV-maker Fisker
FSR,
-4.84%

reported a 50% jump in orders, but shares slipped on a slightly bigger loss. Tripadvisor
TRIP,
+5.99%

and Booking Holdings
BKNG,
+4.52%

are each getting a post-earnings lift.

ShakeShack
SHAK,
-4.64%
,
GoPro
GPRO,
-4.15%

and SolarWinds
SWI,
-5.22%

results are coming after the close.

Berkshire Hathaway
BRK.A,
-1.74%

BRK.B,
-1.72%

shareholders overwhelmingly rejected a proposal to remove Warren Buffett as chairman.

Tons of Chinese companies have been added to a list of those facing expulsion from U.S. exchanges over failure to comply to U.S. auditing standards. JD.com
JD,
-7.48%
,
Pinduodou
PDD,
-10.73%

and Bilibili
BILI,
-11.65%

are among new additions.

Elsewhere on the central bank front, the Bank of England lifted rates to the highest in 13 years and predicted 10% inflation this year, with the pound
GBPUSD,
-2.06%

getting shredded. Brazil hiked rates 100 basis points, and Norway held steady but hinted of a June hike to come.

China’s Caixin services purchasing managers index hit its lowest level in more than two years, as COVID-19 containment efforts hit home.

The markets

Stocks
DJIA,
-1.96%

SPX,
-2.69%

COMP,
-4.18%

are under pressure, with bond yields
TMUBMUSD10Y,
3.035%

TMUBMUSD02Y,
2.699%

rebounding after Wednesday’s post-Fed tumble. Oil prices
CL00,
+1.50%

BRN00,
+1.73%

are climbing as OPEC + reportedly agreed to hike production 432,000 barrels a day as expected. Gold
GC00,
+1.15%

and silver
SI00,
+1.75%

are both surging. Back from a holiday, China stocks
000300,
-0.15%

led a mostly higher Asian session, with European stocks
SXXP,
-0.05%

also up. The dollar
DXY,
+0.83%

is up, notably against the pound.

The tickers

These were the top-searched tickers on MarketWatch as of 6 a.m. Eastern Time:

Random reads

While fighting a war, Ukrainian band members cut remix with singer Ed Sheeran for charity — “2Step.”

Historic Jamestown could soon be history.

Need to Know starts early and is updated until the opening bell, but sign up here to get it delivered once to your email box. The emailed version will be sent out at about 7:30 a.m. Eastern.

Want more for the day ahead? Sign up for The Barron’s Daily, a morning briefing for investors, including exclusive commentary from Barron’s and MarketWatch writers.

Previous Post

Roe leak may impact how Supreme Court decides gun rights, climate and immigration cases this spring – CNN

Next Post

Bank of England hikes interest rates to 13-year high, sees inflation hitting 10% – CNBC

Related Posts

Partygate: Boris Johnson faces further grilling by Labour grandees
News

Partygate: Boris Johnson faces further grilling by Labour grandees

Harriet Harman will lead new...

Read more
Texas school shooting live updates: Uvalde mourns as details of shooting come together
News

Texas school shooting live updates: Uvalde mourns as details of shooting come together

UVALDE, Tex. — The gunman...

Read more
Being Starliner returns to Earth – The Washington Post
News

Being Starliner returns to Earth – The Washington Post

https://www.washingtonpost.com/technology/2022/05/25/boeing-starliner-test-landing/

Read more
Dribble Handoff: Trevor Keels, Drew Timme among those who should withdraw from NBA Draft, return to college – CBS Sports
News

Dribble Handoff: Trevor Keels, Drew Timme among those who should withdraw from NBA Draft, return to college – CBS Sports

https://www.cbssports.com/college-basketball/news/dribble-handoff-trevor-keels-drew-timme-among-those-who-should-withdraw-from-nba-draft-return-to-college/

Read more
Oklahoma governor signs the nations strictest abortion ban – The Associated Press – en Español
News

Oklahoma governor signs the nations strictest abortion ban – The Associated Press – en Español

https://apnews.com/article/abortion-us-supreme-court-health-texas-oklahoma-ad37e8db8a0f3fd9f4fcd215f8a3ed0a

Read more
Load More
Next Post
Bank of England hikes interest rates to 13-year high, sees inflation hitting 10% – CNBC

Bank of England hikes interest rates to 13-year high, sees inflation hitting 10% - CNBC

  • Trending
  • Comments
  • Latest
Sex/Life fans notice a HUGE editing fail in Adam Demos’ nude shower scene –

Sex/Life fans notice a HUGE editing fail in Adam Demos’ nude shower scene –

Can you get rid of a hacker on your phone?

Trisha Paytas Destroyed The Internet By Posting Her Toilet Paper Asshole

Trisha Paytas Destroyed The Internet By Posting Her Toilet Paper Asshole

Horror as goat gives birth to ‘humanoid kid’ with baby-like face

Ranking NFL 2022 ‘Triplets,’ Part I: Bears, Falcons among least inspiring; Saints, Dolphins just below average

Ranking NFL 2022 ‘Triplets,’ Part I: Bears, Falcons among least inspiring; Saints, Dolphins just below average

Partygate: Boris Johnson faces further grilling by Labour grandees

Partygate: Boris Johnson faces further grilling by Labour grandees

Newly developed algorithms raise the bar for autonomous underwater imaging

Newly developed algorithms raise the bar for autonomous underwater imaging

New research questions previous link between diabetes drugs and bone fractures

New research questions previous link between diabetes drugs and bone fractures

About Us

Todayheadline the independent news and topics discovery
A home-grown and independent news and topic aggregation . displays breaking news linking to news websites all around the world.

Follow Us

Latest News

Ranking NFL 2022 ‘Triplets,’ Part I: Bears, Falcons among least inspiring; Saints, Dolphins just below average

Ranking NFL 2022 ‘Triplets,’ Part I: Bears, Falcons among least inspiring; Saints, Dolphins just below average

Partygate: Boris Johnson faces further grilling by Labour grandees

Partygate: Boris Johnson faces further grilling by Labour grandees

Ranking NFL 2022 ‘Triplets,’ Part I: Bears, Falcons among least inspiring; Saints, Dolphins just below average

Ranking NFL 2022 ‘Triplets,’ Part I: Bears, Falcons among least inspiring; Saints, Dolphins just below average

Partygate: Boris Johnson faces further grilling by Labour grandees

Partygate: Boris Johnson faces further grilling by Labour grandees

Newly developed algorithms raise the bar for autonomous underwater imaging

Newly developed algorithms raise the bar for autonomous underwater imaging

  • Real Estate
  • Education
  • Parenting
  • Cooking
  • Travel and Tourism
  • Home & Garden
  • Pets
  • Privacy & Policy
  • Contact
  • About

© 2021 All rights are reserved Todayheadline

No Result
View All Result
  • Real Estate
  • Education
  • Parenting
  • Cooking
  • Travel and Tourism
  • Home & Garden
  • Pets
  • Privacy & Policy
  • Contact
  • About

© 2021 All rights are reserved Todayheadline

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In

Add New Playlist

Posting....