DHUnplugged #622: Box The Whites

Put away the white pants - box up the white shoes - summer is over.

Deeply Oversold - Quick bounce potential is high (Happened last week and today already 3 times)

New study on talking to plants

PLUS we are now on Spotify and Amazon Music/Podcasts!

Click HERE for Show Notes and Links

DHUnplugged is now streaming live - with listener chat. Click on link on the right sidebar.

Love the Show? Then how about a Donation?

Follow John C. Dvorak on Twitter

Follow Andrew Horowitz on Twitter

Warm Up

- Back from NOLA - FSU/LSU game - unreal weekend

- Putting away the White pants and shoes - post Labor Day

- Europe is in trouble - Russia playing hardball with energy flows

- Germany rethinking Nuclear energy

- New study on talking to plants

- Reminder of CTP that is closing for entries Friday

Market Update

- Deeply Oversold - Bounce Potential High (Happened last week and today already)

--- Seems that 3.3% 10Yr is near-term cap?

- QQQ bounce from low in June to high 23%, now eroded to 8%

- Turmoil at BBBY

- China lockdowns and OPEC production cuts

- Apple Sept 7th launch event

BIG ANNOUNCEMENT - TEASE REALLY - TriggerCharts Indicators - New Distribution, New platforms..! NOW TRADINGVIEW.. Launch 1st week of September - Tradestation, eSignal, TradingView!

RSS Feed - FIXED

Yields - 10yr Treasury at June Highs - 3.342%

Market/Sectors Update

Sectors - YTD

When the going get tough

- Throw out all Climate concerns

- Germany keeping 2 nuclear power plans active (Uranium URA?)

- Germany will keep two of its three remaining nuclear plants available for power production as part of a reserve scheme recommended by power transmission grid operators (TSOs) that stress-tested electricity supply

- Economy minister Robert Habeck said the risks of nuclear technology mandated holding on to the exit plan but restrictions in Russian gas deliveries justified the reserve measure.

Oil Production

- OPEC cannot seem to make up its mind - a group of some of the world's most powerful oil producers on Monday agreed on a small output cut from next month, surprising energy markets at a time of considerable turmoil.

- OPEC and non-OPEC partners, an influential energy alliance known as OPEC+, decided to cut production targets by about 100,000 barrels per day from October.

- Oil spiked then dropped after the news (Economic realities and China lockdowns)

Russia Playing Hardball

- On Friday, Russian energy supplier Gazprom said it would not resume its supply of natural gas to Germany through the key Nord Stream 1 pipeline, blaming a malfunctioning turbine.

- The euro fell below 99 cents for the first time in 20 years Monday, after Russia said it would shut off its main gas supply pipeline to Europe indefinitely.

- The EU's common currency was trading around 0.9915 versus the dollar by 1:00 p.m. London time (8:00 a.m. ET), having climbed off lows of $0.9881 hit earlier in the day.

- The dollar index, which measures the greenback against six major currencies, also breached a fresh two-decade high as the British pound slid on fears over energy supply and European economic growth.

Last Item

- Looking at European Gas prices - just to be clear

- Lower gas flows from Russia ahead of and following its February invasion of Ukraine have already pushed up European prices by nearly 400% over the past year, sending electricity costs soaring.

Crude Oil Futures

California Rolling Blackouts?

- Highest rates since 2020

- Potential for rotating outages to conserve

--- How does this work for Electric cars? Supposed to be cheaper alternative

China Lockdown

- Some districts of China's southern tech hub Shenzhen extended curbs on public activities, dining out and entertainment venues on Friday, but city officials stopped short of a full lockdown

- Most of Shenzhen's nearly 18 million residents are now under COVID controls amid the city's most serious outbreak since spring.