When John identifies a strategic exit point, he will send you an alert with specific trade information as to what security to sell, when to sell it, and at what price. Most often, it will be to TAKE PROFITS, but, on rare occasions, it will be to exercise a STOP LOSS at a predetermined price to adhere to strict risk management discipline. Read more
When John identifies a strategic exit point, he will send you an alert with specific trade information as to what security to sell, when to sell it, and at what price. Most often, it will be to TAKE PROFITS, but, on rare occasions, it will be to exercise a STOP LOSS at a predetermined price to adhere to strict risk management discipline. Read more
Global Market Comments
August 13, 2024
Fiat Lux
Featured Trade:
(AUGUST 15 LONDON ENGLAND STRATEGY LUNCHEON)
(THE MAD HEDGE DICTIONARY OF TRADING SLANG)
Come join me for lunch for the Mad Hedge Fund Trader’s Global Strategy Update, which I will be conducting in London at 12:00 PM on Thursday, August 15, 2024. A three-course lunch is included.
I’ll be giving you my up-to-date view on stocks, bonds, currencies commodities, precious metals, and real estate.
And to keep you in suspense, I’ll be throwing a few surprises out there too. Enough charts, tables, graphs, and statistics will be thrown at you to keep your ears ringing for a week. Tickets are available for $298.
I’ll be arriving early and leaving late in case anyone wants to have a one-on-one discussion, or just sit around and chew the fat about the financial markets.
The lunch will be held at an exclusive restaurant on the north side of Hyde Park, the details of which will be emailed to you with your purchase confirmation.
I look forward to meeting you, and thank you for supporting my research.
To purchase tickets for this luncheon, please click here.
Mad Hedge Technology Letter
August 12, 2024
Fiat Lux
Featured Trade:
(UNLOCKING THE FUTURE OF TECH)
(TSLA), (NVDA), (AMZN)
Unshackling the restraints on human labor – that is where tech is headed.
I’m talking about AI.
Robots aren’t able to perform complicated tasks and that is the holy grail of AI.
If headway is made just on this one issue then the sky is the limit.
Profits are then unlimited and the world will change into something we could have never imagined.
If stakes weren’t high enough, the next explosive leg up in tech shares is now centered on this concept.
There is only so much balance sheet maneuvering can add to the bottom line.
Magnificent 7 stocks who are experts are juicing up the balance sheet will gradually run out of levers to pull.
Technology stocks demand that management move the needle along because the alternative is that the company will get left behind.
When the Department of Defense commenced its robotics challenge in 2015, the stated goal was to develop ground robots that can aid in disaster recovery with the help of human operators.
Nearly a decade later, generative AI is accelerating that learning curve, pushing human-like machines to pick up new tasks in real-time.
And in June, Tesla (TSLA) presented an updated version of its Optimus robot at Tesla’s Investor Day and showed it roaming a factory floor. CEO Elon Musk touted the robot’s potential, saying it had the ability to push the company’s market cap to $25 trillion.
Humanoids that can adapt to existing environments have long been seen as the ultimate test if they can work alongside humans in spaces built for them.
Nvidia (NVDA) is driving rapid development through an ecosystem built specifically for humanoids. It combines high-powered chips that process data at high speeds with a digital world that allows users to train robots on skills applied in the real world.
Just last month, Nvidia unveiled “NIM Microservices,” a visual training ground that allows generative AI models to visually interpret their surroundings in 3D.
Nvidia’s ecosystem now enables robots to train using text and speech input, in addition to live demonstrations.
Humanoids have already begun taking their first steps into reality. Musk has said two Optimus robots are working at Tesla’s Fremont factory, and he expects a few thousand to be deployed by next year. Amazon (AMZN) has partnered with Oregon-based Agility to utilize its Digit robot at a test facility. Apptronik is working with Mercedes-Benz to integrate Apollo into its manufacturing line.
The goal is to adapt humanoid for the future which will allow them to operate beyond industrial use. They could become as ubiquitous if companies are able to scale and bring costs down to $10,000 per machine.
Technology is still in the stage of calculating how they bring the expenses under control.
It is not very cost-effective if a company needs to spend 5 times the actual cost of running the AI division on retrofitting the environment for a humanoid and resetting the language models for different tasks.
Much of these technical aspects are being worked out, and these companies are inching their way closer to a day when companies might be able to work fully without a human worker or alongside a minimum amount of workers.
Tesla is a company long-term that needs to be looked at and this assumption is solely based on their robotics and humanoid business. It is highly plausible that Elon Musk is at peace with sacrificing his EV business in the medium time as long as moving up the value chain to become the leader of what is next which is looking more like robotics using AI.
Musk is skating to where the puck is next and that is where the future will be.
When John identifies a strategic exit point, he will send you an alert with specific trade information as to what security to sell, when to sell it, and at what price. Most often, it will be to TAKE PROFITS, but, on rare occasions, it will be to exercise a STOP LOSS at a predetermined price to adhere to strict risk management discipline. Read more
When John identifies a strategic exit point, he will send you an alert with specific trade information as to what security to sell, when to sell it, and at what price. Most often, it will be to TAKE PROFITS, but, on rare occasions, it will be to exercise a STOP LOSS at a predetermined price to adhere to strict risk management discipline. Read more
(ALL EYES ARE ON THE CPI DATA THIS WEEK)
August 12, 2024
Hello everyone.
Week ahead calendar
Monday, August 12
2:00 p.m. Treasury Budget (July)
8:30 a.m. Australian Consumer Confidence
Previous: -1.1%
Forecast: 0.5%
Tuesday, August 13
8:30 a.m. Producer Price Index (July)
2:00 a.m. UK Employment Rate
Previous: 4.4%
Forecast: 4.5%
Earnings: Home Depot
Wednesday, August 14
8:30 a.m. Consumer Price Index (July)
8:30 a.m. Hourly Earnings final (July)
8:30 a.m. Average Workweek final (July)
Earnings: Progressive
Thursday, August 15
8:30 a.m. Export Price Index (July)
8:30 a.m. Import Price Index (July)
8:30 a.m. Initial Claims (08/10)
8:30 a.m. Empire State Index (August)
8:30 a.m. Philadelphia Fed Index (August)
8:30 a.m. Retail Sales (July)
9:15 a.m. Capacity Utilization (July)
9:15 a.m. Industrial Production (July)
9:15 a.m. Manufacturing Production (July)
10:00 a.m. Business Inventories (June)
10:00 a.m. NAHB Housing Market Index (August)
2:00 a.m. UK GDP Growth
Previous: 0.7%
Forecast: 0.6%
Earnings: Applied Materials, Walmart, Tapestry, Deere & Co
Friday, August 16
8:30 a.m. Building Permits preliminary (July)
8:30 a.m. Housing Starts (July)
10:00 a.m. Michigan Sentiment preliminary (August)
Previous: 66.4
Forecast: 66.7
Volatility in the US markets early last week moderated by Friday. Monday saw the biggest volatility shock in equities since the onset of the pandemic. Forex markets experienced similar volatility, with an initial flight to “safe haven” currencies like JPY and CHF, followed by a stabilization in USD as markets recovered. USD traders are now looking to Wednesday’s CPI inflation data release, where headline inflation is expected to dip into the 2% range for the first time since 2021. A sharp decline in this data could reignite recession fears, similar to July’s employment report, as traders worry the Fed has waited too long to begin cutting interest rates.
UK data, including employment, inflation, and GDP figures will be closely watched by traders.
MARKET UPDATE
S&P500
Upside potential ahead, but it could be choppy. We could argue that an Elliott Wave 4 has now been completed and that this could signal the resumption of an uptrend and advance on to new highs for the year.
Resistance = 5450/5470 area. If we see a break above these levels then we can see the market rallying toward 5, 570/5,670 area.
Support = 5,200/5,110. If these levels give way, risk reverts to the downside, and we will be eyeing the key 4,950 support area of April 19.
GOLD
Uptrend is in progress, but momentum has slowed.
We should be watching the support level of $2,365/$2,360 area. If this level is broken, then we may see a corrective sell-off back toward the $2,290/$2,275 area.
If the market is able to rally through the $2,500 level, then there is potential for the metal to rally to around $2,550, en route to $2,670.
BITCOIN
It is not yet certain whether Bitcoin has completed its corrective structure from its mid-March peak of $73,794 to last week’s low of $49,577. There could still be a lot of churn. It is possible that we could revisit the lows of last week (or close to it) or even around the $40,000 level before a new bull rally begins, and we move out of this corrective structure. It could be September/October before we see any significant rally in Bitcoin.
QI CORNER
PSYCHOLOGY CORNER
BE PATIENT AND DON’T OVERTRADE
If most traders would learn to sit on their hands 50 percent of the time, they would make a lot more money.” (Bill Lipschutz)
The lesson we can take away from Lipschutz’s quote is the importance of the art of patience. A very common mistake for beginner traders, eager to make a quick profit, is to overtrade. This, inevitably, always leads to increased losses.
Devise a trading strategy/plan and stick to it. Be patient and disciplined and only enter trades where your predetermined conditions have been met. In this way, you can be sure to avoid many unnecessary losses.
Bill Lipschutz, unfortunately, learned this lesson the hard way, He began his trading career as a student, after receiving an inheritance of stocks with a value of $12k. He liquidated these stocks, began trading with the funds, and managed to turn them into $250k.
However, his early success was short-lived. A poor trading decision caused him to lose it all. But he did not give up. This is another lesson we can take from Lipschutz. He continued trading and upon graduation, he joined the Foreign Exchange Department at Salomon Brothers, where he went on to earn an average of $300 million a year for the firm. He is now the Director of Portfolio Management at Heathersage Capital Management, which he co-founded.
SOMETHING TO THINK ABOUT…
Cheers
Jacquie
When John identifies a strategic exit point, he will send you an alert with specific trade information on what security to sell, when to sell it, and at what price. Most often, it will be to TAKE PROFITS, but, on rare occasions, it will be to exercise a STOP LOSS at a predetermined price to adhere to strict risk management discipline. Read more
