Dear Trader:

The Xtrade team is wishing you a profitable trading day. To help you make right financial decisions, we want to draw your attention to the trends, news, and analysis that are influencing the stock market this week. Knowing what forces are moving stocks will make your trading easier and rewarding.

Trade with Us

Wall Street Continues Its Downward Trend
September was notoriously rough for the US major indices. All three stock benchmark – the Nasdaq, Dow Jones, and the S&P 500 – finished the month in the red, having slipped more than 1%. The general downtrend is being carried over to the beginning of October. This week on Monday, US stock futures were under pressure and should be watched closely, because they might continue moving lower.

Treasury Yields Rise ahead of Jerome Powell’s Speeches
The yields on the 10-year and 30-year were 1.5% and 2% higher on Monday, boosted by falling bond prices, as they usually move in opposite directions. August durable goods orders came in better than expected. To analyzed the market’s movement with better precision, traders are advised to listen to the speeches of Federal Reserve Chairman Jerome Powell. On Tuesday, Powell is testifying before the Senate and before the House on Thursday. He is also talking on a European Central Bank panel on Wednesday. Powell’s speeches might sway the market in either positive or negative direction.

Weekly News Conference

Traders should also watch Congress this week. Lawmakers will try to pass a funding plan to avoid a government shutdown on Friday. They will also discuss the debt ceiling, but do not expect the issue to be resolved just yet. Congress might be putting off this question for a couple of weeks. But you should expect the $1 trillion bipartisan infrastructure bill passed this week.

Brent Oil Prices Might Rip Higher

Brent $200 calls for September 2022, options that would profit traders from a rally toward that level, traded 1,300 times last week on Wednesday. If there is a spike in prices this winter, the contracts will profit greatly. Those of you who trade options can bet that an energy crunch this winter may push oil prices up.

We will be back with updates from the markets to cover the second part of the present week. Meanwhile, we hope that this news will make your trading profitable.

The XTrade Team.