January 3, 2024.  

Click here to UNSUBSCRIBE 


Dust off your history books, traders, because the US debt just embarked on a journey through "Moby Dick"-sized numbers, continue reading to find out! Buckle up, not for a wild ride, but a slow, inexorable ascent, where every tick on the counter adds more weight to the question: how high can it go?


Chillax though, we've got the maps and compasses (charts!) to navigate this uncharted territory. First stop: "Moderna's Road to Recovery" – a chart that'll tell you if the biotech giant's recent stumbles are just speed bumps or warning signs. Plus, we've got market-moving news, random (but weirdly relevant) tidbits, and enough financial analysis to make even the most seasoned economist raise an eyebrow.


Sharpen your pencils, polish your trading bots, and join us on this journey where numbers become stories, and trends become opportunities. It's time to make heads (and portfolios) from tails.



Today's Market Mood: Moderately BULLISH

The Bear/Bull Meter


Daily Market Roundup: A New Year, a Fresh Start (and Maybe a Few Speed Bumps)


The champagne corks may have popped on New Year's Eve, but Wall Street took a more cautious sip of morning coffee.


Tuesday's trading painted a picture of profit-taking and sector rotation, with the S&P 500 dipping 0.6% and the Nasdaq taking a 1.6% tumble. Apple, the tech titan usually leading the charge, took a 3.6% nosedive after an analyst downgrade, dragging its sector down with it.


But hold the bearish headlines. This dip isn't necessarily a sign of doom. Think of it as a portfolio cleanse after a year of record gains. Remember, the S&P 500 soared 24% in 2023, so a little breather is to be expected. As our research team puts it, "It's like hitting the gym after indulging in holiday feasts – sometimes you need to adjust your routine and focus on different muscle groups."


So, what's next? Well, the "muscle groups" in focus now seem to be energy, health care, and utilities, sectors that lagged behind last year. Think of it as a shift in priorities: from chasing tech darlings to seeking stability and dividends.


Of course, there are always wild cards. The Apple downgrade threw a curveball, and the semiconductor sector took a beating after news of US-China chip restrictions. These bumps could create opportunities, especially for those who can stomach a little volatility.


Don't panic about a few red arrows. Stay calm, diversify, and remember, sometimes the best investments are made with a cool head and a long-term view.


Strategies to consider:


  • Take profits selectively: While the market might be adjusting, it doesn't mean you have to sell everything. Identify stocks that have run up significantly and consider taking some profits to rebalance your portfolio.
  • Look for value in overlooked sectors: Energy, health care, and utilities might not be the flashiest, but they could offer stability and dividend income in a volatile market.
  • Stay informed: Keep an eye on geopolitical and economic developments that could impact your investments. Be prepared to adjust your strategy as needed.


Remember, this dip might just be Wall Street's way of getting ready for another record-breaking year. Keep your heads up, and remember that the best returns often come after a bit of turbulence.


Today's Newsletter is Sponsored By

Legendary Trader Tom Busby is a friend of ours and he is getting ready for the big reveal of his new project: Everyday Income.

It’s a brand new way for folks to target extra cash each and every day the stock market is open…


And no, you don’t need to wait months or even weeks to see the payouts…


In fact, almost ALL of them come overnight.

Now look, if you’re reading this right now - you’re no dummy.


You know that with all trading and investing there’s going to be winners and losers along the way… And I want to be clear that no strategy is absolutely perfect.


But what Tom is about to share with you today has worked on over 100 private signals with a remarkable 72.5% success rate


No backtest. No curve fitting. Real signals.


And over the last few weeks, Tom and his team have been able to fine tune the strategy to make it even better.


That’s what gets us so excited about the broadcast that is happening right now.


Click here to login.


Disclosure: The profits and performance shown are not typical, we make no future earnings claims, and you may lose money. From 1/1/23 through 8/14/23 the win rate is 72.5%, based on a $2,500 starting stake the average return is $258 and the average winner is $735.


Market Mischief


Did you hear the one about the chipmunk and the semiconductor shortage?


Seems the little fella went nuts hoarding microchips, hoping to corner the market and trade them for sunflower seeds later. Now he's got a mountain of silicon and a belly full of regret, because apparently, chipmakers aren't big fans of bartering with rodents. Moral of the story: even in the market, sometimes greed gets you nowhere (except maybe with a tummy ache). Just remember, diversification is your friend, not a nut-hoarding chipmunk!


Chart of the Day

$MRNA Chart Tells a Story: From Pandemic Plunge to Promising Peaks


Forget flatlining EKGs, Moderna's chart is a thrill ride of its own. After a rough 2023, it's surged back into the limelight, fueled by an Oppenheimer upgrade and a future brimming with possibilities beyond just the good ol' COVID jab.


Technical analysis tells a tale of resilience. Breaking free from its downward slide, Moderna clawed its way back to $86.84, a mini-victory lap with more to come. The indicators whisper cautious optimism, with support at $70 and resistance at $118 painting a picture of potential growth. Think of it as a springboard, not a ceiling.


This biotech's got more tricks up its sleeve than a magician's hat. A diverse pipeline of treatments stretching far beyond pandemic shores is the real story here. Watch out, Moderna's charting a course for exciting times ahead.


Debt Beast Roars: US Debt Hits a Record High


Just in time for New Year's fireworks, the US Treasury unveiled a dazzling (if unsettling) spectacle: a national debt exceeding $34 trillion for the first time ever. It's a number so big, it deserves its own ticker symbol. And for those keeping track, that's $11 trillion added in just the past four years – an exponential climb that makes Everest look like a speed bump.


Remember the "good old days" of 2009, when a mere $10.6 trillion separated us from financial sanity? Ah, simpler times. Now, trillion-dollar deficits seem as predictable as January snowflakes. In fact, in the third quarter alone, while the economy supposedly waltzed to a 4.9% growth tune, the budget deficit sashayed to a record $622 billion increase. Talk about inflation – that's the kind that comes wrapped in red tape and printed on green paper.


So, what's the endgame for this runaway debt train? Some might say denial is the new economic policy. Others, armed with pitchforks and charts, are preparing for the hyperinflationary tango. And then there's the "polish the Titanic brass" school of thought – just sit back, watch the iceberg approach, and hope the band plays a decent dirge.


Whatever your coping mechanism, one thing's clear: the $34 trillion beast is out of the bag, and ignoring it won't make it disappear. This isn't a market blip, it's a tectonic shift. Brace yourselves for choppy waters ahead, and remember, in the game of debt, the only winners are the ones holding the printing press.


But hey, at least we have memes, right? Let's laugh while we still can, because with a debt dragon this size, the punchline might just be on us.


Market Movers: A Day of Ups, Downs, and Future Footwork


Tuesday's trading wasn't a synchronized swim team, but rather a bunch of solo routines with varying degrees of grace. Here's the scoop on who strutted and who stumbled:


Citigroup (C): +3.1% - Wells Fargo gave them a thumbs-up, predicting rising rates will be like sunshine on their bottom line.


GoodRx Holdings (GDRX): -16% - Bank of America delivered a harsh reality check, downgrading them thanks to growing competition from the pharmacy giants.


Moderna (MRNA): +13% - Oppenheimer gave them a standing ovation, betting on a future filled with new product launches and higher sales.


Rivian Automotive (RIVN): -10% - Their delivery hiccup, despite increased production, had investors slamming the brakes.


Tapestry (TPR): +3.6% - JPMorgan gave Coach a big hug, citing holiday cheer and adding TPR to their "A-list."


Earnings on Deck: This week, food giant Conagra Brands and pharmacy chain Walgreens Boots Alliance take the stage. Walgreens, last year's Dow Grinch, aims for a redemption arc.


The Fed Bingo: Despite Tuesday's wobbles, the market still sways to the "soft landing" tune, hoping for falling inflation and rate cuts. But a misstep here or there – stubborn inflation, a stumbling economy – could throw the whole dance off.


Friday's Paycheck Party: December's job report is this week's headliner, influencing the Fed's next move and the market's rhythm in early 2024. Strong job growth could be the buzzkill that leads to fewer rate cuts than traders are hoping for.


The Betting Game: Investors are putting their money on five or six Fed rate cuts this year, while the central bank's own forecast suggests a more cautious three-step shuffle. The FOMC's January meeting will set the record straight.


Random Musings and the Time Machine


Random Musings:


Apple's Core Dilemma: Is Cupertino facing an iPhone fatigue epidemic, or are recent stumbles just a blip on the tech titan's radar? Meanwhile, semiconductor shortages remain a spicy chipotle crunch in the global supply chain, adding extra intrigue to this tech tango.


Market Movers & Shakers: Citigroup waltzing to higher rates, GoodRx swallowing a bitter analyst pill, Moderna pirouetting with future product launches, Rivian hitting the delivery brakes, and Tapestry primping Coach for the holiday ball. Remember, diversification is your disco ball – it keeps your portfolio reflecting even when the market spotlights shift.


Fed's Fairy Tale Conundrum: Will the central bank cook up a "just right" soft landing, or will inflation be too hot, the economy too cold, and the rate cuts just a lukewarm bowl of oatmeal? Stay flexible, traders, this fairy tale may have multiple endings depending on Friday's job report.


AI vs. Analyst? The Future of Forecasting: Can algorithmic analysis relegate traditional spreadsheets to the financial museum, or will human intuition and strategic thinking forever be the secret sauce in navigating the market maze? Place your bets – this poker game's just heating up.


Debt Trick or Debt Disaster?: As the US debt balloon inflates, whispers of a potential financial reckoning grow louder. Can creative policy pirouettes and economic growth keep the music playing, or are we all guests at a party nobody RSVP'd for? Buckle up, traders, this long-term waltz could have some real consequences.



On This Day in History, January 3:


January 3rd, 1957: Elvis Presley's "Jailhouse Rock" ignited a rock 'n' roll revolution, proving even kings sometimes face financial blues (just ask Graceland).


January 3rd, 1980: Apple Computer Inc. was born, paving the way for iPhones, iPads, and that annoying notification sound we all… tolerate.


January 3rd, 1995: eBay launched, democratizing online auctions and reminding us everyone's got something to sell, from Beanie Babies to barely-used treadmills (guilty!).


January 3rd, 2009: Bitcoin emerged, ushering in the era of cryptocurrency and proving even digital gold can have volatile price swings (remember that pizza that cost millions?).


January 3rd, 2022: Google Fiber scaled back its internet expansion plans, reminding us even tech giants sometimes bite off more fiber optic cable than they can chew (literally!).



The Final Ledger


The market today was a mixed bag, with some stocks sprinting uphill while others stumbled onto the sidelines. But don't get tripped up, investors! Remember, the market's winds are always shifting. Stay agile, spread your bets across different sectors, and keep a parachute handy – unless you're a long-term player, in which case, grab a comfy seat and enjoy the scenic route.


As someone once said, "The market is a place where people exchange money for their opinions. But sometimes the opinions are not worth the money." So, do your research, trust your gut, and don't be afraid to laugh at the occasional absurdity of it all. Because in the end, it's not about predicting every twist and turn, it's about staying in the game and dancing to your own financial rhythm.


Until next time, traders! Keep those portfolios healthy, and remember, even a bad day in the market is better than a good day at the office (unless you work for Warren Buffett, then maybe not).


On this website we use first or third-party tools that store small files (cookie) on your device. Cookies are normally used to allow the site to run properly (technical cookies), to generate navigation usage reports (statistics cookies) and to suitable advertise our services/products (profiling cookies). We can directly use technical cookies, but you have the right to choose whether or not to enable statistical and profiling cookies. Enabling these cookies, you help us to offer you a better experience.