Financial News vs. Noise

Our ETFs

This morning we launch 2x Long (MSTU) and 2x Short (MSTZ) MicroStrategy.

Yesterday's Webinar: How to Buy Stocks Before Top Money Managers Do.

(Passcode: #ii0yrfC)

Yesterday's episode of The Watchlist

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Today is FOMC, and for the first time in a while we really don't know what they are going to do. We also don't know how the market will react to what they do. We have also had 7 higher closes in a row in the S&P 500. The market is obviously hoping for something, 50 bps perhaps. If they get it will we see buy the rumor sell the news? If they don't get it will we see a selloff? Lots of uncertainty here. If you haven't hedged yet, I would. I have no idea whether we rally or not, just think you need to be careful.

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More evidence that you want to be invested in AI....

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BlackRock, Microsoft Partner on Massive New AI Infrastructure Fund-WSJ

The systems powering new AI products are highly energy intensive. The recent frenzy to build data centers to serve the exploding demand for AI is causing a shortage of the parts, property and power that the sprawling warehouses of supercomputers require.

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Interestingly, most of our short watch list this morning is oil companies and XLE and XOP. Oil was up yesterday, probably at least in part based on the story below. Don't piss off the Mossad.....

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Hezbollah Pagers Explode in Apparent Attack Across Lebanon-WSJ

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If I were trading the chart of XLE and was looking to short, I would want to see a failure at the 200 day.

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Way better ways to guard against a market downturn. Whenever you find edges they are likely to eventually be arbed away. The only edges that stick around are either structural, psychological, or have some sort of moat around them. All the smart beta stuff has been around for so long, if there ever really was an edge, it's gone at this point.....

These ETFs Can Guard Against Downturns. It’s What They Do Otherwise That Hurts.-Barron's

Some investors are revisiting an old strategy to stay fully invested in stocks while mitigating the impact from market swings: low-volatility exchange-traded funds. Sometimes called minimum-volatility ETFs, the funds use so-called smart-beta strategies to rejigger market-cap-weighted indexes, using academic research to find less-volatile stocks and to excise the most mercurial names. The theory is that low-volatility ETFs will outperform broader markets during selloffs by losing less.