President Fed, Jerome Powell, submitted a quarterly testimony to the Chamber of Deputies yesterday and today will testify to the Senate. The market reaction was minimal, its speech was largely a meeting of the meeting and the FOMC press conference last week.
As is the case in general during these quarterly presentations, they will present an identical testimony with two chambers of congress. As a result, we are likely to learn very little during the deposition of Mr. Powell before the Senate.
Here are several key elements you can remember:
- The economy weakens: Mr. Powell notes that the economy is weakening, but that it is not yet in the recession. In addition, it describes the labor market as follows: ‘The labor market remains solid, although we observe certain signs of slowing, with an unemployment rate that is still historically low, but which gradually increases as economic growth slows down.
- Inflation and customs tariffs: Mr. Powell said inflation remained greater than his 2 %goal. In addition, he expressed his optimism about the fact that he would achieve his goal without provoking economic slowdown. However, it remains concerned that customs tariffs could have a short inflation impact, which would make their task more difficult in the coming months.
- Federal funds: Powell repeated the latest quarterly FOMC screenings and said he was expecting two basic points this year. As we show below, the market is equal to the Fed.
- Geopolitics: He notes that the growing hopes of a ceasefire between Israel and Iran alleviate them. This therefore reduces inflationary risks.
Will be monitored today
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Economy
Update of market transactions
Yesterday, we noticed that the market was straightened after the mixed reaction of Iran to an American attack on its nuclear installation. In particular, this reflection allowed the market to exceed “Haussier Corner” Which was created, which gave the bull the opportunity to push prices up yesterday.
At the opening of the event, they advanced and encountered the initial resistance of the peaks of December. At the end of the quarter, however, the market shows great dynamics and coverage of short positions, so it is very likely that prices will reach unrivaled peaks. It is important to note that there is not much to stop the market progress after a successful support test and exceed the recent consolidation.
Any weakness of the market by the end of the month should be purchased. July tends to be one of the strongest year, so the increase in the exhibition should be beneficial over the next 30 days. The profit season before the start of the holiday of 4 July, there is no reason to be too careful in terms of allocation or exhibition.
In search of actions in the material sector (CTVA)
The simple chart below decomposes the absolute and relative score of 10 main titles of the ETF in the materials sector (). As we can see, Corteva (NYSE 🙂 and Newmont (NYSE 🙂 are relatively excessive compared to the market. On the other hand, most other titles in the material sector lose speed.
Newmont, a golden minor, benefits from a strong ascending trend. Corteva (CTVA) is a less known society. Let’s use Simplevisor to learn more about this company.
The following screenshot Simplevisor is a description of CTVA activities:
Corteva, Inc. It operates in the agriculture industry. It works through two segments, seeds and culture protection. The seed segment develops and provides genetic equipment and advanced figures that create optimal performance for farms. It offers character technology that improves weather resistance by weathering, diseases, insects and herbicides used in the fight against weeds, as well as food and nutritional characteristics. This segment also provides digital solutions that help farmers decide to optimize product selection and maximize performance and profitability.
The culture protection segment offers products that protect against weeds, insects and other pests and diseases that improve the health of surface and underground crops thanks to nitrogen control technology and seed technologies. This segment offers herbicides, insecticides, nitrogen stabilizers and herbicides for the treatment of pastures and routes. It is in the service of the agricultural entry industry. The society is present in the United States, Canada, Latin America, Asia-Pacific Region, Europe, the Middle East and Africa. Corteva, Inc. It was founded in the company in 2018 and its headquarters is in Indianapolis in Indiana.
The second picture below shows that CTVA, by 31 % since the beginning of the year, overcame it to a large extent. The third chart causes caution. It shows that the event has been relatively stable in the last ten years. In addition, the procedure, at $ 74.44, is negotiated by more than twice the real value of $ 30.22.
The turnover is not indicated, but also has minimal growth. The latest graph combines two Simplevisor pages. The first compares the award of the company with the values of its main competitors. The second provides a general technical summary. No wonder the event is highly listed in the purchase, but as we assumed according to its relative score, it is very beyond. CTVA is mainly negotiating all its key mobile media. Traders can use these levels and key points to identify potential areas of support.
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