Monday, August 30, 2021

đź‘€Beware the Ungovernablesđź‘€

Good morning. Many retail investors are still upset over being locked out of buying...
It's the monthly jobs numbers today and they're not going to be pretty and will be possibly the tip of the iceberg as we head into May.

Good morning. Good morning. Many retail investors are still upset over being locked out of buying shares of companies like GameStop (GME) or AMC Entertainment (AMC) back in late January. They're still around, as evidenced by how shares of those companies haven't gotten back to their pre-gamma-squeeze prices.

Much like those who supported Bernie Sanders or Donald Trump, what's going on is a sort of populist movement that now has the power to both move markets and expose how the big players rig the game in their favor time after time.

This remains one of the biggest yellow flags to the market, as these ungovernable traders could eventually win big, then take their winnings to cash or the crypto markets, leading to a drop in stocks. With market valuations high and breadth of new all-time high stocks low, it's another reason to be cautious going into the autumn season.

Now here's the rest of the news:

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MARKETS
DOW 35,454.81 +0.69%
S&P 4,509.40 +0.88%
NASDAQ 15,129.50 +1.23%
*As of market close
Stocks jumped higher on Friday, thanks to relatively dovish comments by Fed Chairman Powell.
Oil rose 1.9 percent, closing at $68.72 per barrel.
Gold rose 1.5 percent, last going for $1,822 per ounce.
Cryptocurrencies traded higher, with Bitcoin at $48,359 at the stock market close.

Today's TOP TIPS
A Perfect Way to Play the Next Crypto Rally?

After a swift drop earlier in the year after hitting all-time highs, cryptocurrencies have surged higher in prior weeks. The space is pausing again, but may be on track to resume its rally soon.

While many companies have embraced cryptocurrencies, the trend is still early. But investors who want exposure to the space without having to buy and store their own have a few solid opportunities.

» FULL STORY


Insider Trading Report: Cree Inc. (CREE)
Loan Le Duy, a director at Cree Inc. (CREE), recently bought 1,000 more shares. The buy increased the holdings by nearly 6 percent, and came to a total price of just under $85,000.

That marks the second insider buy of the year, also from the same director. Overall, insiders have been sellers of shares over the past 2 years, with insiders last buying in late 2019.

» FULL STORY

Unusual Options Activity: Opendoor Technologies (OPEN)
Real estate platform company Opendoor Technologies (OPEN) has been trending down since February. However, one trader sees the potential for a rebound in the next year and change.

That's based on the January 2023 $23 calls. With 508 days until expiration, over 35,013 contracts changed hands, a 71-fold jump in volume from the prior open interest near 490 contracts. The buyer of the calls paid about $3.60 to make the buy.

» FULL STORY

IN OTHER NEWS
Powell Hints at Tapering Later in the Year

Speaking virtually at the Jackson Hole Symposium, Federal Reserve Chairman Jerome Powell stated that the economic recovering is continuing, and that the central bank would start to wind down its economic stimulus program soon. While no specific date was set, the market has priced in a tapering of the Fed's monthly bond purchases by the end of the year.
Household Income Rises in July

US household income rose 1.1 percent in July, the biggest jump in March. Part of the gain is likely due to the expanded child tax credits. While household income rose overall, spending slowed in July to 0.3 percent, a significant decline from June's increase of 1.1 percent, suggesting that Americans are still being cautious with their cash.
PCE Inflation Rises 3.6 Percent, Tying Record Jump

Personal consumption expenditures, a measure of inflation, rose 3.6 percent compared to a year ago. That met analyst expectations, but also tied with the highest jump in 30 years. The Fed views PCE as the broadest measure of inflation, and on a monthly basis, the inflation estimate rose just 0.3 percent.
Brazil Raises Interest Rates

While most investors are focused on the Fed, a number of smaller countries battling inflation have already started to raise interest rates. In Brazil, the country's central bank rose rates to 5.5 percent, up from 2 percent in March. Economists estimate that rates will hit 7 percent by year-end, to stave off typically higher rates of inflation in the South American nation.
DOJ Subpoenas Peloton Over Treadmill Injuries

The Department of Justice, and Homeland Security have subpoenaed Peloton (PTON) over its treadmill injury reporting. Over 70 injuries from using the company's treadmill products have been reported. The company has recently released a cheaper line of treadmill products, and cut prices on its higher-end models.

S&P 500 MOVERS
TOP
OXY 6.708%
XEC 6.549%
COG 6.356%
APA 5.907%
FCX 5.79%
BOTTOM
MRNA 4.404%
DLTR 2.776%
AZO 2.752%
AAP 2.337%
ETR 1.764%

Quote of the Day
Markets don't like uncertainty and the uncertainty in Afghanistan is high and feels like it's rising
- Bob Doll, chief investment officer of Crossmark Global Investments, on the potential for a black swan event related to foreign policy that could weigh on markets in the coming weeks.

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