EM LATAM CREDIT: Telefonica Moviles Chile: Acquisition Interest - Positive

• 11,187 TYG6 110.5/112.5 3x2 put spds, 109 net ref 112-10

• RES 4: 158.87 High Jan 10 and a key resistance
• RES 3: 158.29 2.618 projection of the Sep 17 - 26 - Oct 1 price swing
• RES 2: 158.00 Round number resistance 
• RES 1: 156.58/157.89 High Nov 28 / 20 and the bull trigger 
• PRICE: 155.90 @ 16:40 GMT Dec 8
• SUP 1: 154.35 Low Dec 5 
• SUP 2: 153.41 50-day EMA  
• SUP 3: 152.82 Low Nov 7 
• SUP 4: 151.54 Low Oct 29 

Recent weakness in USDJPY is considered corrective. The deeper retracement has allowed an overbought condition to unwind. An extension lower would expose the 50-day EMA at 153.49 and the next important support. Moving average studies remain in a bull-mode position, highlighting a dominant medium-term uptrend. A resumption of the trend would open 158.00.

• Stocks are extending late Monday lows as headlines regarding a takeover bid by Paramount Skydance of Warner Bros Discovery continued to make the rounds. Currently, the DJIA trades down 257.36 points (-0.54%) at 47695.75, S&P E-Mini Futures down 32.75 points (-0.48%) at 6844.75, Nasdaq down 82.5 points (-0.4%) at 23493.44.
• Senator Warren called the hostile bid a "five alarm antitrust fire" after Fortune reported Jared Kushner’s "fully owned private equity firm, Affinity Partners, as one of four outside financing partners backing the offer, alongside the sovereign wealth funds of Saudi Arabia, Abu Dhabi, and Qatar."
• Stocks were paring losses just prior to the Paramount headlines after Semafor reported the US Department of Commerce will ease export restrictions of NVIDIA GPUs to China.
• Weaker stocks were also partially tied to a decline in projected rate cut pricing after what may prove to be a contentious FOMC meeting (25bp rate cut still largely expected but with a hawkish guidance).
• Communication Services and Consumer Discretionary sector shares led late session declines: Netflix declined -3.89% after Pres Trump expressed concern over a $72B take over bid for Warner Bros was announced late last week), while T-Mobile US declined -2.52%, Alphabet -2.56% and Comcast -2.33%.
  • Conversely, Paramount Skydance surged +7.33% and Warner Bros Discovery +3.36% (not the same as WB) after the former announced a $108.4B hostile takeover bid for WBD.
  • Meanwhile, Lululemon Athletica -4.89%, Tesla -4.22%, DR Horton -3.05%, Royal Caribbean Cruises -2.92% and Ralph Lauren -4.19% weighed on the Discretionary sector.
• On the positive side, Information Technology and Industrials sector shares outperformed in the first half:
  • Hewlett Packard Enterprise +2.64%, ON Semiconductor +2.50%, Lam Research +2.46% and Broadcom +2.35%.
  • Huntington Ingalls Industries +2.65%, Lockheed Martin +2.28%, Boeing +1.96% and EMCOR Group +1.20%.