| | | | Is the momentum trade dead?
Over the last year, you could slap any number of trending taglines like "crypto mining", "EV", or "food delivery" to a ticker and you were almost destined for stock market greatness...
We just witnessed this over the past couple of weeks with NFTs, or non-fungible tokens.
But dead? More like a short-term coma...
There are several reasons why this is the case, but one in particular stands out the most: "Chop".
In other words, there's no crystal clear direction in which the market is trending at the moment and the thrashing seems as if it's never-ending.
Still, if you were to take an aerial view of the market, the overall trend is up, at least for now...
But recent momentum trades could be taking center stage again soon and "Mr. X" talks about one of the main industries to watch in his newest article...
Read it below.
Keep moving, |
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| | | | | | | | | | | | | | | Bulls, Bears... Tigers?, Rent Extensions, Annoying Whistles
- Margin Calls. They're Grrrrrreat! – Investors of Baidu (BIDU), ViacomCBS (VIAC), and others have grown furious over the past week as they watched their stocks plummet seemingly without reason. But yesterday, it was confirmed that Bill Hwang of Archegos Capital Management, known as a "Tiger Cub" for his work at Tiger Management, is the feline to blame. Margin calls aren't unheard of, but when Wall Street hears your fund couldn't cover a 5x leveraged position in confidential derivative securities that led to an over $30 billion liquidation, the world pays attention. A number of banks including Goldman Sachs (GS) and Credit Suisse Group AG (CS) pulled the plug on the firm, causing a massive sell-off that has put other funds and institutions on edge. Wasn't Tiger Cub convicted of insider trading a few years ago?
- Uncle Sam Pays the Rent – After almost a year of housing evictions being tagged as off limits due to pandemic-related financial hardships, the Biden administration has decided to push back the moratorium's end date, now through June. With millions of Americans falling short on rent and mortgage payments, housing experts have pressured the Federal government to extend the length of the postponement as it was set to expire within the week. Income limitations will still apply, so if you're a millionaire, you may have to wait until the next coronavirus.
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| | | - Donald Duck Instrument Goes SPAC – Piggybacking off the success of digital used car dealerships like Carvana (CVNA) and CarLotz (LOTZ), the British version, Cazoo, announced it would make its way onto the NYSE via SPAC. The company will undergo a reverse merger with blank check company AJAX I (AJAX) in a deal that will give the company an equity valuation of over $8 billion. Cazoo is headed up by Alex Chesterman who was a key player in introducing Amazon's (AMZN) Prime Video and estimates that revenues for 2021 are on track for $1 billion. Still a horrible name.
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Free at Last – Hoards of Egyptians clapped and cheered yesterday as the Suez Canal situation came to an end. With numerous tugboats tugging and engineers working overtime, the Ever Given was set free and moved north to anchor. The reopening of the canal allowed the over 400 idle ships to begin moving through and offloading cargo. But the biggest concern is the backlog of shipping which has put many companies weeks behind. We can only hope that history doesn't repeat itself.
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| | | | | | | | HOT SPOTS: What's going on in geopolitics
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| - ISIS Returns: It's a comeback no one sane was asking for. ISIS has returned and taken over a town in Mozambique. A successful attack by militants has devastated the town of Palma, killing dozens. The attack seems to have successfully shut down an attempt to build a natural gas pipeline that would run through the area.
- Child Seizes Strategic Command Twitter Account: The good news is that foreign hackers didn't take over U.S. Strategic Command's Twitter account. The bad news is that a child did. According to a Freedom Of Information Act request, the person in charge of the Twitter account left the computer unattended for a moment. The operator's child then typed out gibberish. It could happen to anyone. Of course, if my kid does it, I might need a new job. When Strategic Command does it, you get a global panic.
- Putin Seizes North Pole: Well, not exactly. But close. Completing a difficult naval maneuver, three Russian submarines traveled to the North Pole and simultaneously punched through the ice. The submarines are participating in a research expedition which includes civilian personnel. But the difficult maneuver also shows Russia's increasing capability to dominate the polar region, which President Putin has identified as of high strategic interest.
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| | | CUTTING EDGE: What's Happening In Tech
- Canceling The Apocalypse - We might have to deal with pandemics, terrorism, or the possibility of a major war - but we don't have to worry about meteors. At least that's what NASA says. Its meteor tracking system says there is nothing coming to kill us within the next century. One close call (by which I mean 20,000 miles) will be the Apophis asteroid arriving in 2029. You'll be able to see it without binoculars. Still, scientists assure us it will miss. If all the billionaires start evacuating the planet in 2028, then they are probably lying.
- A Pill To Cure Cancer? - That would be the dream. We're all familiar with the usual course of cancer treatment. It's detected, there's treatment, it works for a while, the cancer changes to beat the treatment, and eventually there's just nothing more you can do. However, what if you had a pill that prevented the cancer from avoiding treatments? ResistanceBio is working on a pill that can neutralize the tumor's defenses found in its "resistance profile." If that can be achieved, we wouldn't have to keep looking for new treatments - for many cancers, the cure would already be in our hands.
- New Covid Vaccines Needed In A Year - I mean, let's be honest, we knew how this would end. It wouldn't. The novel coronavirus is mutating rapidly. According to a survey of medical experts taken by the "People's Vaccine Alliance," which encompasses groups including UNAIDS and Amnesty International, we will need new vaccines in less than a year. A significant group polled say that we will need them in less than nine months. So if you got your vaccine, don't be too quick to celebrate. Yearly shots will probably be part of the "new normal," especially if the Biden Administration moves forward with its reported "vaccine passports." At least you can profit off dystopia by investing in vaccine makers.
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| | | | | | | | It's not going to end, just get more complicated |
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| | | FOR YOUR CONSIDERATION
"ARKX seems to be counting on energetic competition and even tension when it comes to militarization and national defense. However, it also seems to assume globalization will continue."
Ark dominated the market in 2020, and it's offering a new ETF beginning today. However, has Ark peaked? And does extraterrestrial capitalism have a fatal contradiction at the heart of it? Mr. X gives his take from Washington. |
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| | | | | | | | | | Toughbuilt Industries (TBLT) is a retail play that has come a long way since last September's low of $0.62.
But as with most earnings reports, the stock sold off...
The first thing to notice on the chart is the massive gap down in the gray bubble, although it did find support at the 200-day simple moving average (green).
At the bottom of the chart are two gold arrows pointing first to the increased selling volume with the second on the RSI, showing what looks like oversold territory.
So long as the support remains at the 200sma around $0.90, TBLT should fill the gap soon.
-Corey
(Disclosure: I hold no position in TBLT.)
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| | | | | | | | | | Copyright © 2020 Rogue Investing. All Rights Reserved. There is a very high degree of risk involved in trading. Past results are not indicative of future returns. Rogue Investing.com and all individuals affiliated with this site assume no responsibilities for your trading and investment results. The indicators, strategies, columns, articles and all other features are for educational purposes only and should not be construed as investment advice. Information for any trading observations are obtained from sources believed to be reliable, but we do not warrant its completeness or accuracy, or warrant any results from the use of the information. Your use of the trading observations is entirely at your own risk and it is your sole responsibility to evaluate the accuracy, completeness and usefulness of the information. By downloading this book your information may be shared with our educational partners. You must assess the risk of any trade with your broker and make your own independent decisions regarding any securities mentioned herein. Affiliates of Rogue Investing.com may have a position or effect transactions in the securities described herein (or options thereon) and/or otherwise employ trading strategies that may be consistent or inconsistent with the provided strategies. An InvestPub Company. |
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