Financial News vs. Noise
We are ringing the closing bell on the CBOE on 5/23 for the Brendan Wood Top Gun ETF (BWTG) in Chicago. Cocktail reception to follow. If you are going to be in Chicago and would like to come let me know.
Eventful couple of days to be away. I thought the market would need some pretty good news on inflation to continue moving up, I was wrong. After a brief dip below the 50 day, the S&P has moved up with a vengeance.
Not a lot of data so wouldn’t be surprised to see the overall markets churn around while the real action is beneath the surface.
Something interesting from WMT earnings yesterday…
“Many consumer pocketbooks are still stretched and we see the effect of that in our business mix as they're spending more of their paychecks on non-discretionary categories and less on general merchandise."
"In terms of the consumer, it's been pretty consistent, I think is the best word we would use, consistent spending across income groups. We've had more growth, as we mentioned in the earlier remarks, on the high-end consumer."
The low end consumer being stretched and the high end consumer moving down doesn’t seem bullish on the economy to me.
Speaking of the consumer…
The U.S. Consumer Is Starting to Crack. Why Income Investors Should Worry.-Barron’s
“We’re definitely starting to see additional pockets of stress as the savings cushion people built up during the pandemic is depleted,” says Shannon Saccocia, chief investment officer at NB Private Wealth, the wealth management arm of Neuberger Berman.
The past few days I have been buying the dips in the law and order names—GEO, CXW, and AXON. GEO and CXW paid off yesterday, AXON still in a downtrend.
Earlier in the week I also bought the dips in the Argentine stocks. DESP looks like they announced some good earnings and will be looking to take profits on that one.
EEM is almost 27% China. IMHO the areas of focus are China and Argentina. I currently have puts on FXI (short term overbought trade) and took profits on PDD the other day and BIDU yesterday. Will look to get back in on dips. Emerging-Market Stocks Are Breaking Out, and Could Beat the S&P 500 From Here-Barron’s.
We are currently long HOOD. I do think it is a “safer” way to play the meme stock run. Robinhood May Be the Last Meme Stock Standing-Barron’s
The events of the week put broker Robinhood Markets, whose trading app is popular among retail investors, back in the spotlight—and its stock could be the real winner.
In Mag 7 names I bought dips in AMZN, MSFT, and META yesterday. Will be looking at NVDA and TSLA today, also looking to add to my AMZN.
Copper has been a hot area. I bought the dip in FCX yesterday and will be looking to add today.
Jeff Currie Says Copper Is the Best Trade He’s Seen in His Career-Bloomberg
The world is going to need a lot more copper to power everything from electric vehicles to updated grids and datacenters. At the same time, getting new mines online is an extremely slow process, one that’s made all the more difficult by political and environmental concerns.
In gold miners I bought the dip in GFI and will be looking to add today.
Been nibbling in the oil names and will be looking for spots to add there as well.
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Matthew Tuttle is the Chief Executive Officer and Chief Investment Officer of Tuttle Capital Management, LLC.
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