220409 US Morning Wrap

Looking at the pre-market session, we see futures are pointing downwards for DJ's and S&P. We should expect a lower start today for the market. Taking cues from the currency market, we see the market sentiment is obviously taking the risk averse theme, with the risky currencies all falling from their highs from yesterday. We also see the yen and dollar strengthening to confirm this view.

Despite Geither's comment yesterday over banks have adequate capital, comments over increasing bad debts over credit card loans and other consumer loans from banks and having the stress test result on Friday, we should see the financials to be weighing the market today.

Moreoever, Nestle 1Q take forex hit, CPU maker AMD posts loss with CEO doubting PC market has bottomed, while Yahoo continued to cut staff. This confirms the delicate status on the economy, and provides an opinion that the previous gains on the market will be short lived.

Looking at the resources/ materials, looking at cues from the industrial metals and crude, I also believe the energy sector will end up in the reds.

Looking ahead for today, we shall also anticipate the housing price index due to be released will also weigh on the market.

Personally I believe the financials shall be a seller, while the tech's will also be weighing on the market. We shall see a DJ and S&P to lower between 1.5-2.5%.

The trade recommendation today looks for shorting citigroup (C) and long into defensive names.

ongy out.