Weekly Catalyst: Watch Lots of Fed Events, China Protests, Casino License Renewal, Energy Sell Off
Written by Moneypig Trading
Hello traders and investors!
1. Fed SOMA balance and market summary
Fed decreased its SOMA balance from $8.16 tn to $8.11 tn in the past 7 days.
2. Federal Reserve speaker and key event this week
Lots of Fed speakers this week. Powell's speech Wednesday will be the key
The market will be choppy, volatile, and driven by the economy data and the Fed speakers' attitude.
5:30 am EST, Dec 1st, the PCE data will help us determine how bad the inflation is and drive the market for the next move
3. Individual Charts to watch
Upside: 74.93 breaks, room to 80.73, 83.44, 85.15
Comment: The Chinese government announced that it has tentatively renewed the casino licenses of MGM Resorts (NYSE:MGM), Las Vegas Sands (NYSE:LVS), Wynn Resorts (NASDAQ:WYNN), Melco Resorts & Entertainment (MLCO) for 10 years. This news takes off the biggest risk for these casino stocks. We are expecting these stocks will move a lot higher.
However, this weekend, Chinese citizens are protesting China’s zero COVID-19 policy all around Mainland China. This civil unrest might bring some uncertainties in the short term. But $WYNN and other casino stocks are undervalued here, and they could easily double from here in the long term
Possible Action (no action yet):
Long $WYNN for the long-term investment
$WYNN weekly 82c long if 80.73 breaks above and hold
3.b. $CL Crude oil
Downside: 72.69 key weekly EMA support. Breaks, room to 70, 68
Upside: 75.97 breaks, room to 76.14, 77.91
China's lockdown is pretty much 2M barrel per day demand drop and hence bringing down the crude oil price quickly. Over this weekend, Chinese citizens protest China’s zero COVID-19 policy all around Mainland China. More factories in China could stop operating due to the protests. $CL crude oil future breaks the year low!
Possible Action (no action yet): $USO weekly 64p long when $CL breaks 72.69
Similarly, we can short energy stocks $XLE $FANG $XOM $OXY
Downside: 534, 529.87
Upside: 540.8 breaks, room to 546.34, 551.3 this week
Comment: Daily chart forms a beautiful bull flag. Technology will likely be choppy this whole week due to all the Federal Reserve events and China protest headlines. Investors are more likely to put their money into more stable stocks like insurance companies such as $UNH.
Possible Action (no action yet): $UNH 529.87 holds in the 15 mins chart & $SPY holds $400, $UNH weekly 540c or 545c long lotto can be considered.
4. Marijuana stocks on the watch
SAFE Banking Act might transform the sector ultimately. Watch our latest youtube videos:
US Marijuana Legalization Could Boost the Cannabis Stocks 5X Part 1
Marijuana Stocks Introduction 2: Canada Marijuana Companies Tilray $TLRY Potential +100%~400% Upside