DHUnplugged #534: The Algo Wobble

Algos working overtime – doing the Wobble.

Markets looking past the weak unemployment number as hope for stimulus is growing.

More companies moving out of CA – what will the state do?

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Congress still bickering over stimulus details – is it a plan to keep markets up?
Markets are dancing the Wobble (baby!) Algo Wobble
December is starting to shape up – rally continues
Still wondering – When will the election be over?
More Good News on Vaccine Front
USD remains under pressure
ANNOUNCING – The Winner of the GLD Closest to the Pin – You are Not Going to Believe who won…

Market Update
Employment Report Friday – Weak, but rate at 6.7% – Markets say: “oh well”
Wobble – One day Banks and Cyclicals, next day Tech and Healthcare (Rinse & Repeat)
S&P 500 up near 3,700 – only 8% until 4,000 – Year End Target?

Stream and Chatroom
– We don’t mention this often enough – Live at 9PM Tuesdays with listener chatroom (dhunplugged.com)

San Fran – Stay At Home
– How is that going?

Markets – Technicals
– S&P 500 companies – 435  450 over 200 day moving average – Highest level since May 2013
– Uptrend – buy what is down, hold what is up…

Market Fundamentals

FORWARD PE CHART

P/E CHART 1

TRAILING PE CHART

P/E Chart 2

Covid Update
– TUESDAY – AstraZeneca confirms AZD1222 Oxford Phase III trials interim analysis results published in The Lancet; demonstrated that the vaccine is safe and effective at preventing symptomatic COVID-19 and that it protects against severe disease and hospitalization  
– One thing – UK announced first dosing of 90 year old with vaccine (PFE)
– President Donald Trump’s lawyer Rudy Giuliani has tested positive for COVID-19, Trump said on Sunday, after a wave of travel by the former New York mayor seeking to persuade Republican state lawmakers to overturn the election results.
— Trump announced – is that a HIPPA concern?
– Arizona and Michigan? Closed their legislature for a week after Giuliani visits

Stimulus Update
– $900 Billion?
– Some want president Trump to Veto latest bill if it does not include direct $1,200 p/p checks
-Where is the $1,200 come from?
– Something will be done – Post Christmas cliff (no one in Congress will want that fail on their resume)

StitchFix
– Moved to profitibality (a surpise compared to expectations)
– Dan Jedda – New CFO (From Amazon)
– Stock up BIG – ATH +35% A/H
— JCD – Ever check this service out?

Tesla – Was Waiting for This
– Tesla (TSLA) entered into an equity distribution agreement to sell shares of common stock having aggregate sales proceeds of up to $5.0 bln through an “at-the-market” offering program
– Stock off 2%

Tesla Compare

More TESLA
– Moving Out of California?
– Musk has told friends that he plans to move to Texas
—- UPDATE: Tesla CEO Elon Musk at WSJ conference confirms he has moved from California to Texas  
– NY, CA – what will become of these cities/states?

LEFTOVERS

Biden Picks – Communications
– Jennifer Psaki, a veteran Democratic spokeswoman, will be Biden’s White House press secretary, one of seven women who will fill the upper ranks of his administration’s communications staff.
– It is the first time all of the top aides tasked with speaking on behalf of an administration and shaping its message will be female.

Leslie Van Houten
– Charles Manson follower Leslie Van Houten who is serving a life sentence for her role in the grisly double murder of a Los Angeles couple more than 50 years ago has lost her latest bid at freedom after California’s governor overrode a parole board’s decision granting her release.
– Ms. Van Houten, 71, qualified in July for release from a state prison, but California law gives the governor final say over whether an inmate is suitable for parole.

NASDAQ – Enforcing Diversity?
– The exchange operator said it aims to require listed companies to include women and people of diverse racial identities or sexual orientation on their boards.

Good Business or?
– U.S. cryptocurrency platform Coinbase facilitated MicroStrategy’s $425 million bitcoin buy earlier this year, the exchange said.
– MicroStrategy became the first publicly traded company to acquire a large chunk of bitcoin to hold on its balance sheet as a primary treasury reserve asset.

BREXIT
– Sky News reporter Adam Parsons tweets “According to EU source, Michel Barnier told a meeting of ministers this morning that the chances of a deal were now “very slim”
– Never going to get done….

Porn Problems
– Mastercard Inc said on Sunday it was investigating allegations against Pornhub.com following a newspaper column which said many videos posted on the adult website depicted child abuse.
– The New York Times column, written by Nicholas Kristof, described videos on Pornhub that the author said were recordings of assaults on unconscious women and girls.
– Pornhub denied the allegations.
– Billionaire investor Bill Ackman called on Mastercard and Visa Inc to temporarily withhold payments to Pornhub following the newspaper column.
– Ackman also asked American Express Co to take action, though the company’s cards aren’t accepted on the site.

PPP – What to make of this?
– Media all ove this: Tom Brady’s sports performance and nutrition company received a Paycheck Protection Program loan of $960,855 from the federal government, according to data released by the U.S. Small Business Administration.
– It was the company – NOT Brady (Media Shaming)

Needs Mentioning – What Are They Thinking?
– Apple launches $549 new AirPods Max, pricier than some iPhones, to boost holiday sales
– Apple Inc on Tuesday unveiled its new AirPods Max, a set of wireless over-ear headphones at $549 apiece, pricier than some of its other popular phone and tablet products, in a measure likely to boost sales over the December holiday period.
– The new AirPods, which will have up to 20 hours battery life
– Lots of fancy colors… Sky Blue, White, Green, Space Grey, Pink

Not Good
– FireEye, one of the largest cybersecurity companies in the United States, said on Tuesday that is has been hacked, possibly by a government, leading to the theft of an arsenal of internal hacking tools typically reserved to privately test the cyber defenses of their own clients.
– Beyond the tool theft, the hackers also appeared to be interested in a subset of FireEye customers: government agencies.


420 Stocks …

CLICK for list of “Pot Stocks”

Stocks to watch: CGC, STZ, TLRY, CRON, MJ, NBEV

 


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WINNER!
Closest to the Pin for Gold ETF

*** NEW INTERACTIVE CHARTS ***

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PLUS a one-of-a-kind DHUnplugged CTP Winner’s certificate..

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UPDATE – NEW ETF – Global X Millennials Thematic ETF Challenge!

The top holdings of Global X Millennials Thematic ETF (MILN) include stocks many investors would expect, such as Facebook, LinkedIn and Amazon, which take advantage of the tech tendencies of millennials. But some names might be more surprising like real estate investment trusts AvalonBay Communities and Equity Residential, and Home Depot, which could benefit from millennials moving out of the home of their parents.

We are creating the DH Old Codger Index Portfolio to compete against this new ETF to see how “old school” stocks do in comparison. Companies in our index will include: (updated names as of 8/29/16)

We have the performance summary running (daily and since inception of 5/6/16) – DHOCI vs. Millennials ETF Battle


Feel Good Story
– A blind man completed a 5-kilometer (3.1-mile) run in New York’s Central Park without a guide dog or human help this week. His navigation aid? Artificial intelligence through headphones plugged into a smartphone.
– He worked with the Alphabet Inc unit to create a research program. A smartphone camera picks up a painted ‘guideline’ on a running track. An app detects the runner’s position and gives audio guidance through an earpiece.

Fed Limericks

Mystery Limerick’r
The Short sellers are gong to drown
As the Fed slams rates back down
If inflation gets too hot
They’ll change rules on the spot
And we all be moving uptown

John’s Score ()

Peter Winter
Yellin is Biden’s choice
To be his Treasury voice
Mnuchin is out
Losing his clout
Time for Powell to rejoice.

John’s Score ()


See this week’s stock picks HERE


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