#137 - Mortgage Rates, Elon Musk 3D Twitter Chess and Biden's Call for Canadian Oil
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In this week's episode of Reformed Millennials, Broc and Joel discuss how markets are reacting to an inverted yield curve, Biden’s Call for Canadian Oil and Elon’s Investment in Twitter.
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👉 For specific investment questions or advice contact Joel @ Gold Investment Management.
The indexes ran to their February highs, gapped slightly above them to force the last remaining shorts to cover and cause some FOMO; then they reversed lower. Breakouts stopped… breaking out over the last few days which signals that the market is stalling and in need of some consolidation.
It’s normal to see a reaction after multiple days of rallying from the bottom.
The question is which stocks will make higher lows and continue higher and which ones will keep pulling back to new lows.
Semis and financials already tested their 20dma. So far, the bounce attempt is very tepid.
Retailers broke below their 20dma and are looking the most vulnerable. The latter makes sense. Raging inflation will impact not only people’s purchasing power but also their willingness to spend.
The main indexes, SPY and QQQ printed inverse weekly candles. It would not be the worst thing in the world if QQQ pulls back to 350 and SPY to 445-440 and let their rising 20-day moving averages catch up with price.
Don’t get overly bearish. This minor pullback in the indexes seems like another sector rotation.
The weakness in semis, banks and transportation stocks on Friday coincided with strength in biotech. 63 stocks went up 10% or more last week vs 23 that went down 10% or more (priced over $15, average daily volume of 500k shares).
We haven’t cared about inflation since 1981. It’s now bubbling up in every day conversation. It matters and we’re at risk of blowing up a booming economy if the central banks don’t handle this situation with care.
I think it’s important to address why we had 4 decades of flat to down inflation
Technology and this is not even close to going away but probably accelerating.
Unemployment is sub-4%, cruise lines just had their best week ever and Las Vegas casinos are totally mobbed.
I'm not convinced yet that this economy is as bad as it was in 2009.
💸Reformed Millennials - Post of The Week
I am in a lot of Telegram rooms dedicated to crypto.
A lot of the technical banter goes right over my head, but I am starting to read about more apps and products that I would use myself. The infrastructure layer is here.
The other day in the 6th man Ventures Telegram they were talking about a fitness app called ‘Stepn‘ and it immediately made sense to me.
Here is their ‘Litepaper‘. The gist: https://stepn.com/litePaper
All this makes me wonder why Nike and the other fitness companies have not yet offered products for the metaverse that work like ‘Stepn’, but maybe they will now that they see this working.
What makes all this so extra cool is that ‘Stepn’ is already trading on the exchanges. The early users and adopters and people in the community can own the tokens.
In the month that it has started trading the ‘green metaverse’ token has gone from 15 cents to $2.60.
I have no idea how to value these type of coins/communities/ecosystems, but this is the new financial and digital world we are living in right now and I am trying to take part in it.
At minimum, I completely understand why a whole generation of investors has moved over to crypto.
🌊 Canadian Companies To Peruse 🌊
Shopthing.com - “No more waiting in lines or frustrating try-ons! Our team of Live Shoppers hunt for the best luxury deals daily. All your favorite brands are available via 24 hour flash sales in our iOS App and IG Stories”
Raised $10m CAD Series A March 23rd (launched marketplace app March last year) - betakit article announcing the funding says they have 500,000 users
🔮Best Links of The Week🔮
Why Shein Might Be Worth 100b in 4 charts - Business of Fashion
The Yield Curve Just Inverted…Now What? - Of Dollars and Data
A Checklist for corrections - Compound Advisors
How People Think - Collaborative Fund
Netflix Should Start Adding Commercials? - Ben Thompson