cup of fresh cappuccino near laptop keyboard and notebook

In our weekend digest, we summarize the best pieces published from the working week. These can be read in full by clicking on the link over the name/ticker.

Editor’s Picks – looking for short squeezes

Short Interest Data – 25/03/22

Robert provides the handy update of a list of the most shorted stocks from the US, using our own data compilation from sources including Bloomberg.

Stocks – quieter week as ranges formed

HSBC (LSE:HSBA) – 22/03/22

The main reason for the gains in the HSBC share price is the tightening of monetary policy from central banks around the world. Over the past six months, chatter had picked up on the need and desire from the major central banks to start reducing asset purchases and increasing the base rate. In fact, only last week we saw both the US Fed and the Bank of England raise rates by 0.25% respectively. 

Kroger (NYSE:KR) – 23/03/22

“We’ve got the worst inflation in decades, which is bad news for the whole industry except Kroger, which we know is coping just fine with inflation and even has expanding gross margins,” the “Mad Money” host, Jim Cramer, said.

Kroger also recently entered into a strategic collaboration with Nvidia Corp for artificial intelligence-enabled applications and services. The parties will build a state-of-art AI lab and demonstration center to expand Kroger’s freshness initiatives and improve shipping logistics.

Tilray Brands, Canopy Growth Corp (TLRY, CGC) – 25/03/22

Much depends on the outcome of next week. In the run up to this, the sector and the above names will continue to see high volume as the attention turns to them.

Assuming the bill passes (as it did the last time it came up for a vote, in December 2020, by a vote of 228 to 164), it will move to the Senate for consideration. Last time, this was what kicked off the sector and big moves were seen.

FX – dealing with rate hikes and range breaks

The FX Review – 20/03/22

Phil runs through the big events from last week which are still being discussed by players this week. Namely, the central bank hikes from both the US and the UK. The divergence in views going forward (Fed looking to hike more aggressively vs the BoE being more conservative) is the main talking point here.

Short USD/JPY Trade Idea – 24/03/22

We think that the technical picture will start to hamper gains. The 2016 resistance level should offer a tricky test for the already overbought pair to take out in the short term.

The weekly RSI (relative strength index) is the highest since the end of 2014. We’ve also seen a several sigma move outside of the Bollinger bands, which suggest a mean reversal is due.

We intend to hold this position for several days, waiting for a pullback to exit. A sustained break above 121.65/70 would cause us to rethink and close out the position.

To find individual disclaimers on specific stocks, please read the specific article.
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