Financial News vs. Noise
Following Powell’s lead the Swiss National Bank unexpectedly lowered it’s interest rates and while the Bank of England held it’s rates steady, they also came out dovish. Central bankers it seems are favoring economic growth over fighting inflation. Throw in Micron’s earnings and you had another pop in the markets. The only downer was the department of justice going after AAPL.
As expected, my countertrend model for AAPL triggered a buy. History tells you to buy dips on AAPL but you could certainly see it test some support spots in the 168s, 167s, or the October low of 165.24.
Of more interest to me yesterday was the 10 yr rates not really doing anything.
And gold and the miners down.
Something to keep in the back of your mind.
DWAC vote is today. As usual I have talked to a ton of reporters about it. Here is my Newsweek quote:
Donald Trump's Stock Spikes on Important Deadline
Investment strategist Matt Tuttle, founder of Tuttle Capital Management, told Newsweek on Thursday that he believes the merger will indeed be approved, offering Trump potential liquidity.
"He could theoretically use his stake in some way, either get someone to lend on it, [or] have the company allow him to sell," Tuttle said.
Tuttle added: "I think given the choice of selling some stock or having [New York] take over his property, it's an easy call," implying Trump would prefer liquidating part of his DWAC stake rather than succumb to the civil penalties brought on by New York State Supreme Court Justice Arthur Engoron after New York Attorney General Letitia James filed and eventually won the lawsuit.
The implications of Friday's vote reach beyond the immediate merger. DWAC is the "election stock," Tuttle previously told Newsweek, suggesting that any approval would mark Trump's amplified presence in the public market, an arena where he has had a checkered past with his previous venture, Trump Hotels and Casino Resorts, which ultimately filed for bankruptcy.
I know Schwab had no borrow the other day, which is not a huge deal as they suck for hard to borrow. I did see people tweeting that Interactive Brokers, who does not suck at hard to borrow, also had nothing. Really have no idea if this turns into an epic short squeeze or a buy the rumor sell the news event. I have shares because the options spread sucked when I went to buy it.
Couple of the themes we have been following continued to run yesterday. The law and order names stayed strong, looks like I took profits early. Argentina also continued strong and I did sell one name, IRS, but still have YPF, LOMA, and GGAL.
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Matthew Tuttle is the Chief Executive Officer and Chief Investment Officer of Tuttle Capital Management, LLC.
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