To The Moon

After Fed Chair has commented that rate hike might not be in the horizon, and we saw oil futures and the yield on the 10-year Treasury note were lower. Gold prices rose. The U.S. dollar lost ground to the euro and yen, but gained versus the pound. Most major cryptocurrencies traded lower. But what I would like to discuss in this article is how bond yields and gold are related and how we can plan our investing and trading strategy around it. Bond Yields and Gold Positive Relationship Not Confirmed? If we were to take a look the relationship between Gold and the bond market, there is not really confirmation of a positive relationship. The chart below presents the price of gold and the 10-year Treasuries (we took the yields and inverted them). As one can see, the price of gold was rising

Yesterday we saw the major stock indices experienced limited fluctuation in early trading as investors awaited key market events. The advance-decline line showed a slight preference for advancers at both the NYSE and NASDAQ. Market initially showed little reaction after the Federal Open Market Committee's (FOMC) unanimous decision to maintain the fed funds rate at 5.25-5.50%. But stocks start to rally after Fed Chair Powell indicated that a rate hike was unlikely in the near future. This statement prompted a drop in market rates, with major indices subsequently rising by over 1.0%. But the market ended yesterday session with only Dow Jones in the green. The short rally after Fed Chair comment evaporated quickly. Treasury Note Yield Fell After Fed Funds Rate Changes. The yield on the 2-yea

Ah, Block (SQ), a digital chimera weaving through the labyrinth of fintech. With its stock price doing the limbo from its 2021 heights, everyone's playing detective, wondering if SQ is about to rise like a phoenix. Let's don our Sherlock hats and unearth what's cooking beyond the surface. Peeking Under the Hood: Block’s Strategic Chess Moves Finance meets urban vibrancy in Block's digital ecosystem Square, now Block ($Block(SQ)$), isn't just about card readers and the usual fintech fluff. It's all about Cash App, a digital wonderland with 40 million users doing everything from stock trading to tax filing. It's like a financial Disneyland, especially for the underbanked and those who've had their fill of traditional finance. The Moolah Mystery: Can

On Thu, 25 Apr 2024, $Intel(INTC)$ announced its much anticipated Q1 2024 earnings. This comes hot on the heels of Wall Street stretching its necks out and hoping for a feel-good alibi to pump Intel’s stock price higher. And the results ? Q1 2024 Earnings. In summary, Intel first-quarter earnings has beaten Wall Street expectations for earnings per share (Yay!). Unfortunately, sales came up light (uh-oh!). Then the bomb, Intel gave a weak forecast for current quarter - Q2 2024. (ka-boom!) Intel earnings vs LSEG consensus expectations: Earnings per share: $0.18 adjusted vs. $0.14 expected. Revenue: gained +9% at $12.72 billion vs $11.7 billion YoY, vs $12.78 billion expected. Q2 2024 Forecast. Earnings per share (forecast) : $0.10 vs $0.25

We saw a significant downturn in the stock market yesterday, with NASDAQ experiencing a 2.0% drop, more than the S&P 500 and Dow Jones Industrial Average, which fell by 1.6% and 1.5% respectively. The decline was exacerbated towards the close due to a wave of end-of-month selling, reflecting a broader trend of de-risking throughout April. We also saw Gold contract going below $2,300 and the Crude Oil WTI also fell below $82 per barrel. Significant Losses From Tech Stocks Notable losses were recorded by NVIDIA (NVDA) and Meta Platforms (META), despite both companies showing early gains during the day. NVIDIA closed down at $864.02, a 1.5% decrease, after initially peaking with a 1.2% gain. Similarly, Meta Platforms ended the day at $430.17, down 0.6%, after an early increase of 1.6%. R

$Block(SQ)$ is expected to release earnings on 02 May 2024 after the market closes (AMC). Like many of the fintech firms, Block has been struggling to get their stock prices up. Block stock has been trading around $70 (±$20) for almost the last two years. If we look at Block, we could see that Block is actually one of the companies that was seen as a high-growth alternative to $PayPal(PYPL)$ with the drawback being that this company did produce the kind of profits PayPal did. And Block’s core business has shown no substantial slowdown in growth, and management appears to be executing very well. The drawback to me is no longer a cause for concern, as Block has recently turned profitable

Bitcoin Illuminates Future: Cryptocurrency and Technology Convergence Ah, the wild world of crypto and its quirky companions - MicroStrategy ($MicroStrategy(MSTR)$) and Coinbase ($Coinbase Global, Inc.(COIN)$). Strap in, dear investors, for this rollercoaster ride of financial frolics! Decoding MSTR: More Than Meets the Bitcoin Let's kick off with MSTR, the Bitcoin belle of the ball. Picture this: a business intelligence firm with a Bitcoin binge habit. Yes, you heard me right - they're like that friend who's always telling you about the latest crypto craze. But here's the twist - MSTR is also a software wizard making money from non-Bitcoin sources. It's like juggling oranges and lemons while balancing o

Healthcare Stocks Couldn't Bandage This Red Trading Day The market was overwhelmingly red on Tuesday despite some healthcare earners holding up indexes.  The Nasdaq Composite index sank more than 2% and S&P 500 and Dow Jones Industrial Average fell nearly 600 points as markets awaited Wednesday's interest-rate decision from the Federal Reserve. The $NASDAQ(.IXIC)$   fell 325.26 (2.04%) to a 15,657.82 close, while the $DJIA(.DJI)$   gave up 570.17 points (1.5%) to 37,815.92. Meanwhile, the $S&P 500(.SPX)$   shed 80.48 ticks (1.6%) to

TLDR: Tesla has a high probability of trading around $190 this week. If there is a significant deviation on Thursday or Friday, it may be worth considering buying options to speculate on a potential squeeze. $Tesla Motors(TSLA)$ surged 15% on Monday, which should theoretically indicate bullish market sentiment. However, after battling market makers for so long, the first thing I checked was the open interest data for put options. As expected, the open interest for puts with strike prices between $195 and $185 saw a substantial increase.On the call side, the strikes with the largest increase in open interest were mainly above $200. But the $190 to $200 strike range already had significant open interest. Therefore, this week's Tesla price action is

Major U.S. stock indexes rallied, with Tesla surging 15% and boosting the consumer discretionary sector. Apple rose 2.5% on an analyst upgrade, though investors remained cautious ahead of the Federal Reserve's rate decision and April jobs report.The Fed will hold its two-day policy meeting on April 30-May 1, with several officials previously signaling no urgency to cut rates. Markets are pricing in a 97.6% chance of the central bank standing pat.Options market data suggested expectations for reduced near-term volatility in the S&P 500, with a downside bias this week. For QQQ, focus was on bets for an outsized move in either direction, with expectations of a 1%+ decline or 3%+ rally over the next two weeks. Small-cap Russell 2000 options saw continued accumulation of far-dated