To The Moon

1. Indexes and Macro Highlights

Although the $S&P 500(.SPX)$ and the $NASDAQ(.IXIC)$ regained some of the ground lost in the previous week’s sell-off, markets were choppy and returns varied widely across asset classes. The$DJIA(.DJI)$ fell slightly and instability in segments of the U.S. and European banking industries kept investors on edge.

For the second week in a row, U.S. small caps lagged their large-cap peers, the Russell 2000 Index $iShares Russell 2000 ETF(IWM)$ fell 2.6% for the week; over the past two weeks, its decline was more than 10%.

As of last Friday, the $Straits Times Index(STI.SI)$ lost0.18% last week and$S&P/ASX 200(XJO.AU)$ dropped 2.1% weekly.Last week’s market volatility was driven primarily by the fallout from two U.S. bank failures $SVB Financial Group(SIVB)$ $First Republic Bank(FRC)$ and stresses at a midsize lender that secured a $30 billion deposit pledge on Thursday from a consortium of 11 large banks.

In addition, a troubled European bank $Credit Suisse Group AG(CS)$ received emergency assistance from Switzerland’s central bank. Latest news on local time March19th, $UBS Group AG(UBS)$ announced that it will acquire $Credit Suisse Group AG(CS)$ , with a total consideration of 3 billion Swiss francs (about 3.25 billion US dollars), a roughly 40% discount to Credit Suisse's market capitalization on last Friday.

Current risks involving segments of the banking system have injected fresh uncertainty into the next meeting of FED on Wednesday. Earlier expectations for another rate hike of either a 25bps or a 50bps have been thrown into doubt, with some observers suggesting the Fed may keep rates unchanged.

On the macro front, because many bank stocks are in a "crisis", the market expects the Fed's interest rate hike in March to drop to 25bps, and the market expects at least one rate cut in 2023.

2. Sectors and Stocks of $S&P 500(.SPX)$

Last week, the communication services sector rose the most, then technology and utilities sector ranked second and third. The biggest drop was in the energy sector, followed by a 4.83% drop in the financial sector as a whole.

According to the table above, we see that the weekly gains of $Microsoft(MSFT)$ and $Alphabet(GOOG)$ larger than 12%. $Amazon.com(AMZN)$ , $Meta Platforms, Inc.(META)$ has a weekly increase of more than 8%, and $Apple(AAPL)$, $Tesla Motors(TSLA)$，$Eli Lilly(LLY)$ has an increase of more than 4%. Specifically, Microsoft released the 365 office software copolite which stimulated the market's positive expectations.

The top 10 winners of $S&P 500(.SPX)$ are $Advanced Micro Devices(AMD)$ , $Illumina(ILMN)$ , $Newmont Mining(NEM)$ , $Alphabet(GOOG)$ ,$MarketAxess(MKTX)$ , $Microsoft(MSFT)$ ,$Alphabet(GOOGL)$ , $NVIDIA Corp(NVDA)$ , $Arista Networks(ANET)$ , $Intel(INTC)$

Data from Tiger Broker

3. Other Focuses：

Inflation Moderation: U.S. inflation slipping to the lowest level since September 2021.The government’s CPI recorded a 6.0% annual rate in February, down from 6.4% the previous month and in line with most economists’ expectations.

Bitcoin surge: The price of Bitcoin rose to nearly $27,000 on last Friday, its highest level since last June, as the most widely traded cryptocurrency surged 34% for the week. On a year-to-date basis, Bitcoin was up 61% as of Friday.

Bond price rally: Prices of U.S. government debt surged for the second week in a row, sending yields sharply lower, the yield of the 2-year U.S. Treasury note fell to around 3.82% on Friday. As recently as March 8, it had been as high as 5.07%.

Oil slick$Light Crude Oil - main 2305(CLmain)$ : The price of U.S. crude oil tumbled below $67 per barrel on Friday, slumping to the lowest level in more than 15 months. Oil fell around 13% for the week as instability in segments of the banking industry added to recessionary fears, which could weigh on demand for oil.

Gold$Gold - main 2304(GCmain)$ :Gold price has printed a fresh 11-month high at $1,988.33 as it is being treated as a safe-haven amid the banking fiasco.Gold price is further approaching the horizontal resistance plotted around $2,070.54.

4. The week ahead: March 20-24

On the earnings side, results from $Foot Locker(FL)$ on Monday, $Nike(NKE)$ on Tuesday, $Darden Restaurants(DRI)$ on Thursday will offer updates on the state of the U.S. consumer.

Monday

• No major reports scheduled

Tuesday

• Existing home sales, National Association of Realtors

Wednesday

• U.S. Federal Reserve Board concludes two-day policy meeting, Chair Jerome Powell holds press conference

Thursday

• New home sales, U.S. Census
• Weekly unemployment claims, U.S. Department of Labor

Friday

• Durable goods, U.S. Census Bureau

How is your trading plan in this week？

​​Any special focus？

​​​Please join the the Daily Discussion with Tigers​​​

​