Good Morning,

Wall Street stocks experienced a sharp downturn following an initial rally, as gains in the technology sector diminished despite a boost from Nvidia's earnings. Additionally, U.S. jobs data complicated the labor market outlook. The Nasdaq reached its lowest closing point since September 11, while the S&P 500 hit its lowest since September 10. Meanwhile, the Cboe Volatility index (VIX), known as Wall Street's fear gauge, closed at its highest level since April 24.

Nvidia shares (NVDA.O) ended the day down by 3.2%, having previously risen by up to 5% earlier. Other companies in the chip industry also performed poorly, with the semiconductor index (SOX) declining by 4.8%.Palantir lost 7% and Rigtti 11%. Volumes were massive at 21 billion shares traded.The GER40 is trading at 23k. 

The clear cause for the was unclear, but looked like profit taking, deleveraging and overall risk averseness. We seem to be trading in a glass half empty environment.

Japanese yields are off the recent highs and their US counterparts calm, the USD index is little moved but precious metals took another beating over night, Gold fell to 4060, Silver 49.70, Bitcoin is trading at 85k  Oil extended declines as Zelenskiy agreed to work on a US- and Russia-drafted peace plan

Japan announced a 135 stimulus package over night, the largest since the covid period, this was basically expected.

Donald Trump removed his 40% tariffs on Brazilian food products, including beef and coffee, initially imposed to penalize Brazil for prosecuting Jair Bolsonaro. This reversal, following a similar move last week, aims to lower US food costs

USDJPY peaked at 157.89 before retreating, easing concerns for Japanese officials. Japan's Chief Cabinet Secretary and Finance Minister expressed urgency over FX moves,

Koen took a look at Netflix: Netflix after the stock split: how investors can set their own entry price

Netflix’s lower post-split share price invites renewed interest, yet timing a purchase still matters. We explain a simple, structured way for investors to define the price at which they would be comfortable buying the shares.

Netflix after the stock split - how investors can set their own entry price | Saxo

Rubens took a look at the defense sector:

Inside Saxo’s defence theme

Defence demand is structural and multi-year, not a quick cycle.

• Spend clusters in munitions, air defence, drones, and logistics.
• Saxo’s Defence Theme provides a curated, diversified view of global defence companies across the value chain.

What do we expect today? The only really significant releases are the PMI, these will need to be a real outlier to grab attention from the overall nervousness in the market.

On the one hand, traders will be asking themselves what could spark the next round of optimism if Nvidia failed to provide it, on the other, this may be a great opportunity for bargain hunters and FOMO buyers. It will come down to the overall sentiment.

Remember that options can be a great way to gain exposure with limited risk or to provide protection of your assets.

Trade safely

Friday November 21

Japan CPI, UK Reetail Sales. International PMI.

Speakers: Bar, Jefferson, Logan