The world before, the normal world

Over eight trading days, the market is up six days. At least in the United States. Europeans are still lagging behind, but it must be said that Europe has a war to deal with on its territory, which the Ricans do not have. Although today it is again the Americans who make the most noise in the media on this subject. Yesterday, when the bedridden US president wandered around Europe announcing new sanctions against Russia, the economic figures that emerged at home were not so bad, and while European markets did nothing, most indexes of Americans continued their rise.

The sound of 25. March 2022


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The return of revenge

Since March 15 and the latest “bottom of the hole” in the markets, the S & P500 has regained 9.5%, the Nasdaq is more than 13% in performance, while the Dax and Cac have regained almost 14% since the lowest. Lower ones that were made a little earlier when we are talking here about March 7th. If we take a step back, the old adage “buying by the sound of the gun” seems to take on its full meaning, even though it took a few days before it went into the deep end.

Yesterday, it was again the technology sectors that took the lead. Not that the news was any different from the day before, not that the peace plans were advanced in the least, but let’s say that the speakers began to find a kind of normality, or at least a kind of return to normality, that seemed to satisfy the whole world. However, the sanctions continue to rain down on the Russians and it does not seem to want to stop. On Thursday, the brilliant US president, who is campaigning to take Emmanuel Macron’s job as president of Europe, announced new measures against more than 400 Russian units or citizens, including the 300 members of the Russian parliament. And to add a layer, he also banned gold transactions with Russia.

Stop or again?

After blocking oil, here is the US blocking the yellow metal, a new problem for Vladimir Putin to deal with. Especially since Russia is one of the largest holders of gold on the planet, and this cuts off a new method of financing. Biden also suggested a further sanction against Russia:

Remove country from list of G20 countries !!!!

Oh God !!!!!

The highest penalty. Imagine for a second you were transposed into the karmic driven world of Earl. Imagine for a second you were transposed into the karmic driven world of Earl. Not to mention that you will not be able to participate in the group photo, nor play the game of who has the biggest ego, nor have the chance to meet Emmanuel Macron, who will not be able to explain to you how big, handsome and intelligent he is since he takes himself for Kennedy. I do not know how Putin will find himself in this situation, and it is more than likely that a withdrawal of Russia from the G-20 would have much more historical effect than the landing of the GIs in Normandy in 44.

That plus the fact that Russia will not be able to participate in the next Eurovision song contest, we feel the end of the war is near.

World Tour of Biden

No matter what I think, and no matter what you think, Wall Street yesterday focused on Biden on a world tour to show that he was too good to be the world president and a cop on the planet, on the fact that the oil was down – yes, yes, the barrel lost 2%, I know you can not see it at the pump, yesterday I went to fill up, and they had to revive me at the checkout when they had to pay – and then we bumped also on the fact that unemployment claims were at their lowest in 52 years !!!

So what are unemployment requirements? It’s still a financial figure, which gives a feeling that is not necessarily accurate, but which is more than enough for the average trader to make an investment decision in the next 8 minutes … at least. Basically, when people can not find a job, they will register as unemployed, and Jobless Claims rise, and when they find one, they resign, which means that the economy is booming, that they will receive a huge salary. , can afford Teslas, iPhones and invest in the stock market.

A thriving economy

No matter what a Russian general on the other side of the planet does, and regardless of the price of gasoline, you were told that the guy in question should buy a Telsa, not a Ford Raptor or a Grand Cherokee with a 700 horsepower engine under the bonnet. It is therefore really good economic data that makes you want to buy the market. Not to mention that when one has such numbers, numbers that are at their lowest in 52 years, when we come out of a pandemic that has brought the planet to its knees, that we are told that the pandemic is back in question in the month of June, and that a mad dictator and a war criminal set Eastern Europe on fire and blood. That still means it’s too great to live in the United States with a thriving economy, jobs on every street corner, and money falling from the sky every 45 minutes, even when the weather is good. .

These figures are weekly, not always accurate, but as of yesterday, there were “only” 187,000 people applying for unemployment during the week, that was 28,000 fewer than last week, and it was 23,000 less than analysts’ expectations that the oil increased “only” 846% since mid-April 2020, and that it was unlikely that a Russian would win the Eurovision Song Contest, there was no reason not to buy the market, drive the technology up and drive Apple up for the eighth session in pull and blow up the semiconductor sector in the air.

Semiconductors

Yes, because yesterday we suddenly realized that technology would continue to evolve, and that we would always need electronic components, and that what companies like Nvidia or AMD, or even Intel, sold, c was still for Cool. It was enough to look at the sector performance chart to realize that today’s worst performance in semiconductors was a 2% UP, and the best was Nvidia with a performance of 10%. Incidentally, it’s pretty crazy, because Nvidia presented their future strategy 2 days ago, and no one liked it as year 40, but suddenly yesterday it seems that they have discovered the Grail, and that Nvidia will suddenly be able to to turn lead into gold and Samsung smartphones into Apple iPhones.

In short, yesterday was a good day for increases in the US, a day for nothing in Europe, but the world police are on the scene and even though nothing fundamentally has changed, it is still war, oil is still too expensive and inflation is simply uncontrollable and obviously not about to fall, yesterday we still rose for the sixth time in eight days.

Asia

This morning, Asia is relatively calm, the indices doing nothing except Hong Kong, which is making a profit and has fallen 2.3%. We can not blame him given the performance of the last few days.

As for the “rest”, it should be noted that the sanctions against Russian gold have not even moved gold – or barely enough, as the latter is traded at $ 1962. Oil drops to $ 112 and pushes the market higher, and Bitcoin breaks resistance at $ 43,000 and looks “technically” heading for much higher – could this be the long-awaited start? It must be said that the positive comments from the head of BlackRock on the subject are good – as the governments, according to him, will be more and more interested in cryptocurrencies in case of a crisis.

Today’s news

For the rest of today’s news, we will note a return of passion for cannabis with a spectacular recovery in the sector as the US Congress next week is to vote on the federal decriminalization of cannabis. However, there is still some way to go, since then it has to be accepted in the Senate and then by the President, and we know that despite long work from the lobbies, it is not super hot. But maybe by that time he’s forgotten he was not super hot, or he will have forgotten what cannabis is.

And then, still on the geopolitical chapter, Europeans are asking the Chinese to use all their influence to stop Putin and his war. It remains to be seen whether the Chinese will not destroy Taiwan before arresting Putin, just to beat two birds with one stone. And still in China, version 2.0 of the Omicron variant, called BA.2, which has not yet got a Greek letter, continues to spread rapidly. But obviously no one cares as we are still in “back to the world before” mode and we prefer to deal with blinders at the moment.

On the economic side, there will be the IFO, and otherwise the “European leaders” will meet in the presence of the world policeman, and then they will go for a walk along the Ukrainian border, a digestive walk where Macron will do anything to give Biden a hand. and show that he has been his great comrade since he thinks he is Kennedy.

Futures are almost nothing and it looks very calm and everything is quiet. So I want to wish you a good weekend and see you again on Monday, as usual !!!

Thomas Veillet
invest.ch

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