RSI or relative strength index measures the speed and change of price movements in the underlying stock, we can use this to evaluate if the stock is overbought or oversold and aid us in our trading strategies The values of RSI and what they mean The RSI move between 0 and 100. Typically the RSI indicates that a stock is considered to be overbought when it is above 70 and oversold when it is below 30 This number is open to adjustment depending on each characteristic of each individual stock, if the RSI of a stock is repeatedly over 70 over let's say a week, we might want to adjust this to 80 as a resistance level In a bull market, the RSI tends to remain in the 40 to 90 range however during a bear market the RSI will usually stays between the 10 to 60 range.  If the underlying stock pr

News just came in that PCAOB, public company account oversight board set up by the US government to oversee audit of US public companies has just been given full access to inspect and investigate financial records of China companies listed in US Great news for NIO, BABA, PDD, BIDU This is major news because is the first time in history that China allow audit papers to be taken out of China for inspection, following through on the agreement signed back in August. I think this greatly reduce the risk of China companies listed in US being de listed although another major factor will be the discrepancies if any found in the audit papers. Nonetheless this is yet another great news after China begin to open up their country after relaxing covid19 restrictions. Thoughts I believe C

Elon Musk just launched a poll to ask if he should step down as head of Twitter, this is after taking much heat from the recent banning of accounts that dox live location of other's including himself and also demand from Tesla shareholders accusing him of abandoning work at Tesla Thoughts Shareholders of Tesla probably would rejoice if he is to step down as he had got himself into this discussion on controversial issues on Twitter which not just divided opinion of him but also has hurt Tesla's brand and share indirectly.  Telsa share fell 20% last week, one of the biggest drop in recent time was also partly due to Elon selling 3.5 billion of Tesla shares likely to fund day to day operations of Twitter.  He bought Twitter in o

Probably the most edgy earning call for a very long time. Wall Street is expecting EPS of $1.15 and a revenue of $24.24 billion More questions than answers The recent run from $100 to $140 is great news for Tesla shareholders but it will be short lived if many issues that surfaced recently or issues that exist for sometime remain unanswered or is given an unsatisfactory answer. Questions I hope can be given a satisfactory answer in this earning calls would be What is the timeline for cybertruck production, specification and pricing.  We have been teased for many years on the release Tesla Cybertruck only to have it delayed on multiple times. 2023 looks set to be the year we can get our hands on Cybertruck although no specific date is announced yet. With the release

Earlier this morning, Elon Musk made a surprise appearance at Twitter space(live audio conversation) hosted by StockMTKNewz where he answered a variety of questions including current macro environment and tesla progress. Not selling anymore Tesla shares until 2025  Specifically he comment that he won't sell anymore tesla shares until 2025 and that the recent selling was to get some dry powder in case things got bad for Twitter.  "I will not sell stock until at least two years from now. certainly not next year under any circumstances" I thought this is great news for Tesla shareholders as we already experienced the negative effect on Tesla share price whenever he start selling shares, more specifically a few months back when he acquired Twitter and also th

Came across a chart showing how unique 2022 is for investors, only two other years, one in 1931 and the other in 1969 resulted in both stocks and bonds having negative return. We came off a peculiar event in our history that is the pandamic now, where the FED step in and took extreme steps to greatly ease their monetary policy preventing a financial collapse of the world economy. Every decision has a cause and effect and the actions taken by the FED has resulted in many adverse effect and the major one being rampaging inflation we are seeing now. I just want to give a shoutout to my fellow investors to stay on course, not quitting and don't be disheartened if your portfolio is down this year. Let's take this opportunity to seek out great companies that has fallen to reasonable valuation an

$CrowdStrike Holdings, Inc.(CRWD)$  $Snowflake(SNOW)$   CrowdStrike fell as much as 20% after releasing their earning reports. Let's solely look at the negatives in the earning report to analyze if this massive drop is justified.  Soft guidance  CrowdStrike issued a relatively soft guidance for Q4, raising on EPS but lowering guidance for revenue.  Overall revenue guidance for FY2023 remains unchanged with a slight increase in EPS expected.  ARR (Annual recurring revenue)  The very core of the business was below expectations.  Although ARR grew 54% YoY, it is not shown that ARR merely grew 10% QoQ "Total net new ARR was below our expectations as increased

I am not here to deny that tesla cutting the price of its electric car won't impact their margin but if this solves the demand issue and they continue to able to sell every car they produce at full capacity I will take this as a win.  Price cut solves the demand issue overnight In the first week of Tesla price cut in China, sales of Tesla cars according to insurance registration grew from 2k the week before to 12k Shortly after the announcement of price cut in China, Tesla did a similar move in US resulting a drop in 51% of their US inventory First price cut after raising prices multiple times  Let's not forget Tesla has been raising their car prices for years before the recent price cut. The price cut is in line with the easing of supply chain issues and the drop

Came across JP Morgan playbook for today at Bloomberg. They are seeing a 50% chance of inflation coming in at 7.2 percent - 7.4 percent which is in line with expectations and a S&P gaining 2-3% on this as investors cheer a drop 0.8% in inflation over the last two months. The concern will be the 25% chance of inflation coming in hotter which will be very bad for the market.  VIX is up 25% over the past 5 days shows how uncertain the environment is before CPI release.  Let's wait in anticipation!  $SPY(SPY)$ $S&P 500(.SPX)$ $QQQ(QQQ)$ 

Who is Micheal Burry Michael Burry the famous investor who correctly predicted and profited from the subprime mortgage crisis in 2007 by shorting the mortgage bond market, making himself over $100 million and $700 million for his investors. Inflation peaked but it will be backed His recent views suggest that inflation has peaked and we will be getting lower CPI from now, this has to be great news for the stock market as this suggest that FED will likely have to change their stance to boost the economy and stimulate growth especially in a deflationary environment.  Thoughts  Is it that straightforward? If things played out like Micheal Burry predicted, we might see a massive recovery of the stock market into 2021 levels and see a repeat of t

My oh my! Sea Limited (SE) had a remarkable earning beats for Q4 2022, exceeding earnings expectations due to significant cost-cutting measures. The management team made swift and decisive decisions to improve profitability, which ultimately paid off. Let's take a look Drastic cost cutting measures One of the most notable actions taken was the CEO and top management team forgoing their salaries until the company turns profitable. While it may have been a small expense savings it sent a powerful message of the management team's commitment to the company's success. Another significant move was the various rounds of job cuts, reducing Sea Limited's workforce by about 10%. The company is also seeking a replacement tenant for its massive 200,000 sq ft leased space, which will help tri

News just came in that bank of Japan has adjusted their yield control curve for their 10 years bonds from 0.25%-0.5% This is to say that they will allow their 10 years bonds yield to be between 0-0.5% The increase in this curve is quite similar to an interest rate increase as older 10 years bonds will see their bond price falling due to becoming unattractive to investors which shows the inverse relationship between interest rate and bond prices Is BOJ a Hawk now? Although BOJ increasing the yield curve control is a hawkish sign, signaling and acknowledging the rising cost that is happening, I don't think it has turn into a hawk yet. The short term interest rate is still - 0.1% and the yield curve control is just giving themselves more space to move in case rising cost ran out of contr

We will hoping to find out through the minutes if there is any discussion between members on how much they want to raise rates in February meeting, but the minutes provide none of that.  FED officials will remain hawkish "Participants noted that, because monetary policy worked importantly through financial markets, an unwarranted easing in financial conditions, especially if driven by a misperception by the public of the Committee's reaction function, would complicate the Committee's effort to restore price stability" Above statement indicates the hawkish tone FED members will give during public speaking or interviews in the near term future. Will keep tightening until significant progress, rate cuts in 2023 is out of question  The FED stressed that they will keep tightening