Time for a Better Newsletter 🤔
Still needs a name...
Good Morning ☀️
Took us some time, but we’re back. Why? Wanted to bring something different, you can get a market roundup anywhere. You get the what happened, but you want to know what it means and that’s where we come in and try to lay it out, for educational purposes only of course.
It’ll be sent out twice a week, one with a quick hitting bites of info/articles, snippets of our hot takez, and what we’re trading then another over the weekend that’s hits a new theme each week that looks for opportunities in different industries (think 3-5 minute read). Without further ado, the now nameless newsletter. Enjoy!
What we’re reading this week:
Job openings outnumber the unemployed… (WSJ) - dont need skills to pay the bills, just stimmies
Why Xi Jinping Waited Years to Launch His Crackdown on Tycoons… (Bloomberg) - the new Mao?
JPow may not get a second term if some liberals have their way… (WSJ) - thought the Fed was an independent entity?
More Fed officials talking tapering… (Reuters) - slow rolling the market
Senate votes infrastructure bill and crypto regulation within it… (Bloomberg) - crypto fanatics aren’t happy
Other People’s Mistakes… (Collaborative Fund) - best fintwit/thinking writer out there
Bernie Madoff’s final days… (MarketWatch) - i don’t feel sorry for him
What are we thinking about this week:
CPI and PPI reports. Continuing jobless claims. Earnings reports from U, FUBO, PLTR, NIO, SONO, BMBL, BIDU, CELH, WISH, DASH, DIS, ZIP.
Methinks with energy costs and certain commodity prices (like lumber) subsiding, inflation should be down a bit. But with demand being what it is for housing and vehicles, it may have a larger impact on numbers on the higher skew. Higher wages may increase producer inflation since they have to build in the costs into pricing. I’m still a believe that this inflation is transitory until supply catches up (manufacturing, logistics, and labor), then we’ll have a deflationary event with demand slowing and supply growing. Sit on your cash until then.
I’d like to see if the Delta effect has increased DASH usage, lessened BMBL. Is ZIP busier due to job openings and hirings? How’s the Chinese crackdown affecting BIDU? Are U and FUBO growing their respective industries in different ways than before (advertising w/in gaming and betting through your platform streaming live events)? Can PLTR blow a quarter out of the water and get my portfolio out of the gutter? Are people using WISH? It’s the worst e-comm site I’ve ever seen. CELH has massively grown in the fitness drink market, can it continue if people aren’t going back to the gym? I’m interested in what DIS has up their sleeve for content going into 2022.
What we traded last week:
I’ll go over what we did over the last week. I try to keep my trading to a minimum since gains can be erased in an instant, but also there’s so much to learn that if your head isn’t in the game, then you already lost. For transparency and educational purposes only:
LYV 8/20 $90c: I know this industry due to having events biz, they blew out ER, but expectations are now a little iffy with Delta. 85% gain, bought more on 8/9 on big pullback. .39 cent premium cost.
BGFV: Snagged after they tanked after a great ER. Made 12%, but down 75% on 8/20 $30c though.
GBTC: Bought on BTC weakness. Sold after 5%, shame because it’s up 16% since I sold.
PRTS: Car parts industry has been flying, owned into ER, company is heavily shorted, rode it for 21% gain.
TDOC 9/3 $165c: Got stopped out on Friday at $2 on $2.50 premium, giving up a 40% gain earlier in the day. Bought back in yesterday with a $1.70 premium, so still down from initial trade.
NH 8/20 $2.5c: Was in 9/17 $5c because of its basing, waste of money, down 50% in both. May just ride out til its worthlessness is complete.
Added shares to WISH, PLTR, TDOC, MRO, SCHB. Sitting 20% cash.
Thanks for reading, please comment or ridicule us @OrchardTraders on Twitter.