05-MAY 07-2021

Mother's Day_4Good morning.
Hedge funds have been selling their tech stocks for 9 of the past 10 sessions, based on brokerage data.  What’s more, these funds have been selling more than they own, essentially going short.  That’s a huge reason for the weakness in tech in the past few weeks, even as the overall markets remain near all-time highs.
The last time funds were this short was back in late December, right before a surge in some smaller-cap tech names in January and February.  Based on this data, traders may want to look at some call options on the tech space in general, or look to buy calls on some of the most heavily-shorted stocks, as that strategy could generate some serious alpha in the coming weeks.

Now here’s the rest of the news:

Silver Demand To Climb To 6-Year High In 2021 
Silver Institute’s forecast expects demand to pour in from all sides and climb to 1.033 billion ounces this year, a 22% leap compared to 2020.  A wide base of demand for physical silver has one surprising source well in the lead… [Read Here]

Economists Explains True Cost of Biden’s Spending Plans Could Be $17.1 Trillion: 3x Higher Than Advertised –Brad Polumbo,FEE.org
Hidden costs include excess burden, what in economics would be called deadweight loss, associated with tax increases.  And that pushes the true price even higher… [Read Here]

May 07, 2020

Just one more thing!Good morning.
The ADP report that came out yesterday is a grim reminder of how big a predicament that we’ve put ourselves in by closing the economy.  Like the closures or hate them, I’m not sure many had though enough about what may lie ahead.
The market is beginning to weigh these factors, but the conclusions are diverging.
Tech up, financials down, gold down, oil down, bonds down, and dollar up.  Which is the odd man out?

→  Neither Amazon nor Home Depot comes close to the amazing performance of online merchant Wayfair (NYSE: W).  Since bottoming out below $22 on March 19, Wayfair soared above $180 at the start of this week.  That’s a gain of more than 700% in less than two months.  Wayfair (W)
As for me, I’m going to sit this one out.   Although I feel Wayfair has become grossly overvalued, I have learned the hard way that logic does not always prevail on Wall Street.  If I were to play on Wayfair’s demise … within the next month … buying a put option that expires in June would be the least ex-pensive way to go.  On May 5, a put option on Wayfair that expires on June 19 at the $160 strike price could be bought for $18.  [One put option is on a minimum 100 shares equals $1800] … however, if Amazon were to acquire Wayfair … the $1800 would go up in smoke!!!

Quote - Did You Know

May 07, 2019

Today’s quote comes from David Bach:

“You’re richer than you think, you’re more powerful than you know, and small amounts of money can change your life.”

Cows and coffee are the key to Catherine’s success… I was part of Maria Isabel’s success; sharing her quick story below…

Invite friends to Kiva

So little can mean so much!

I encourage you to check out Kiva.org

You choose who you will help.  Make a difference!

Provide the financial means for displaced people to rebuild stable lives.

Women … on average, reinvest 80% of their income in the wellbeing of their children.  🙂

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Come From Aways, Do You?

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