Monthly Archives: May 2022
Showing articles 21 - 30 (35 total)
10May3:07 pmEST
Crouching Tiger Fund, Hidden Systemic Risk
Tiger Global Management, a sizable hedge fund based out of New York and run by Chase Coleman, III., has been part of the buzz lately due to the drawdowns the fund has suffered. You can see their latest holdings here , which should shed light on how aggressively they are positioned into tech and growth stocks. Hence, due to the nature of the...
10May10:10 amEST
Lay of the Land
The major indices are recovering most or all of yesterday's drubbing after an overnight squeeze in the futures market. We will hear from President Biden later this morning on the hot button topic of inflation, which should be a market sensitive event leading up to tomorrow morning's CPI print. I am going to guess his speech writers will have...
09May2:38 pmEST
Not Every Safe Stock is Safe Here
With a Price/Earnings-to-Growth Ratio now over 3 (anything over 1 tends to turn off value investors), a forward PE in the 20s, and a multi-year chart which is as steep as the quarterly PEP seen below, you would be hard-pressed to make a sound case right now that Pepsico represents compelling value. Instead, the more likely bull case is that...
09May10:38 amEST
You Fell Victim to One of the Classic Blunders
Bear markets are notorious, in their relatively early stages, for creating a narrative as to why a certain bearish outcome simply cannot happen. Many market payers, due to prior conditioning of the bull market (especially this one) assume the former glory leaders like the "FAANG" gang will roar back to new highs as inflation recedes and growth...
07May10:51 amEST
It's OK to Be Wrong; It's Not OK to Stay Wrong
Cathie Wood said as recently as last week that her greatest fear right now is that her flailing stock holdings in the the ARKK funds would get bought out at (what she perceives) low prices. Retail investors continued to pour money into markets as recently as Thursday despite the wild price swings and lack of progress buyers have been...
06May11:34 amEST
Still Waters, Deep and Dangerous
The old English expression, "still waters run deep," often implies someone who seems rather unassuming on the outside but is quite capable of a great many things on the inside. In Italian, this expression manifests itself as "‘l’acqua cheta rovina i ponti," which translates as, "still waters ruin bridges." The Italian version has a far more...
05May3:28 pmEST
Operation: Live to Fight Another Day
I am 100% cash in my trading account here, tempted to take on some shorts overnight and press for a wipeout. That said, after my thinking that commodity stocks were ripe to extend a fresh rally clearly petered out rather quickly today, I am going to respect the wild indecision and daily price swings we are seeing now until we get more clarity...
05May10:16 amEST
Playing the Triangle Offense
In addition to the UGA gasoline ETF chart we have been teaching, both crude oil and wheat, on their respective ETF and fund charts, below, are sporting bullish-looking triangle consolidations in the context of prior uptrends. In light of The Fed's pussyfooting around its "fight" against historically high inflation, the only two ways out of it...
04May3:20 pmEST
Be Careful with Your Birds, Jay
After sloshing around for the first forty minutes or so after the FOMC decision to raise by fifty basis points and commence a baby step QT program next month, stocks catapulted higher as Fed Chair Jay Powell in his presser decisively said a seventy-five basis point rate hike was not even under consideration. While Powell also made...
04May10:53 amEST
Expect Head Fakes
With such a widely-hyped FOMC later today, at 2pm EST, one simply has to brace for the seemingly inevitable post-decision whipsaws and likely head fakes to come. Also note we have a Chair Powell presser starting at 2:30pm EST, which is sure to be market moving as he potentially drops hints at the size of the rate hike in the June FOMC, too. In...
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“chessNwine” has been a popular trader and financial blogger since 2009. His work has appeared in The Wall Street Journal Online Edition, Yahoo Finance, TheStreet.com, Josh Brown’s The Reformed Broker blog, AbnormalReturns.com, Barry Ritholtz’s The Big Picture blog, and the “Suggested” stream on Stocktwits.com.
