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
October 4, 2024
Fiat Lux
Featured Trade:
(JOIN ME ON CUNARDS QUEEN MARY 2 FOR MY JULY 11 TRANSATLANTIC SEMINAR AT SEA LUNCHEON), (EUROPEAN STYLE HOMELAND SECURITY)
Mad Hedge Technology Letter
October 4, 2024
Fiat Lux
Featured Trade:
(TECH WANTS TO GET RID OF LABOR COSTS)
(TSLA), (NVDA)
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 just recently, 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 this past summer, 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 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
(A LOOK AT ISRAEL’S AIR DEFENSE SYSTEM & THE COUNTRY’S TIES WITH BOEING)
October 4, 2024
Hello everyone
Israel’s Iron Dome air defense system is one of several systems the country has developed to protect itself from missiles since the Gulf War in 1991.
It also uses Arrow interceptions, and a system called David’s Sling.
The short-range Iron Dome air defense system was built to intercept the kind of rockets fired by Hamas in Gaza.
It was developed by Rafael Advanced Defense Systems, an Israeli state-owned company, with US backing, and became operational in 2011. Each truck-towed unit fires radar-guided missiles to blow up short-range threats such as rockets, mortars and drones in mid-air.
A naval version of the Iron Dome to protect ships and sea-based assets was deployed in 2017. The system determines whether a rocket is on course to hit a populated area; if not, the rocket is ignored and allowed to land harmlessly.
What is David’s Sling?
David’s Sling system is designed to shot down ballistic missiles fired from 100 to 200km away.
It was developed and manufactured jointly by Rafael Advanced Defense Systems and the US company RTX, formerly known as Raytheon.
The system is also designed to intercept aircraft, drones and cruise missiles.
What is the Arrow system?
The long-range Arrow-2 and Arrow-3 interceptors, developed by Israel with an Iranian missile threat in mind, are designed to engage threats both in and outside the atmosphere.
It operates at an altitude that allows for the safe dispersal of any non-conventional warheads.
State-owned Israel Aerospace Industries is the project’s main contractor, while Boeing is involved in producing the interceptors.
Israel said it had used the system on October 31 last year to intercept a surface-to-surface missile fired from the area of the Red Seas towards its territory.
Boeing and Israel have a long history that goes back more than 75 years – to the founding of the State of Israel. Since then, Boeing has worked closely with Israeli and commercial and military customers and suppliers and has developed many lasting partnerships.
Israel has a large and modern air force and a successful commercial aviation sector. The Israeli aerospace industry in the public and private sectors provides a high level of innovation and expertise in the design and manufacture of a wide variety of defence, space and communication products. Its position as a world aerospace leader makes Israel an important market and partner to Boeing.
El Al = Israel’s flagship airline.
QI CORNER
SOMETHING TO THINK ABOUT
Cheers
Jacquie
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
Come join me in the grand appointments of the Cunard Line’s luxurious flagship Queen Mary 2 on an adventurous seven-day cruise across the Atlantic Ocean.
The ship departs from the Brooklyn Cruise Terminal at 10:00 AM on Tuesday, July 8, 2025 and arrives in jolly old Southampton, England on the morning of Tuesday, July 15. On day three, the ship will pass over the wreck of the Titanic.
There, I will be conducting the Mad Hedge Fund Trader’s Strategy Luncheon where I will discuss the future of the global financial markets.
I’ll be giving you my up-to-date view on stocks, bonds, currencies, commodities, precious metals, energy, and real estate. I’ll highlight the best long and short opportunities. And to keep you in suspense, I’ll be tossing a few surprises out there too.
Tickets are available for $499 for the seminar only.
Attendees will be responsible for booking their own cabin through Cunard. They offer everything from an inside stateroom from $899 per person to $26,780 for Q1 deluxe two-bedroom apartment with its own gym and two butlers. Please note that Cunard offers its biggest discounts of the year on November 29 Black Friday.
Just visit their website by clicking here, or call them directly at 800-528-6273 to make your own arrangements. Only reserve cruise number M519.
The weather this time of year is usually balmy with the Atlantic as smooth a Mill pond, depending on our luck. A brisk walk three times around the boat deck adds up to a mile where I often see spouting whales and frolicking dolphins. Space X Starlink Full Internet access will be available, for a hefty price, to follow the markets. It’s unlikely we will see another ship during the entire seven days at sea.
Two dinners during the voyage will be black tie, so bring two tuxes or formal dresses. Don’t forget to bring your Dramamine and sea legs, although the 21-year-old, 148,528 tonne, 1,132-foot-long, 131-foot wide ship is so big I doubt you’ll feel the roll of the sea. The ship cost $800 million to build in 2003 and carries 3,000 passengers and 1,000 crew.
The event will be held at the ship’s luxurious Owners Suite, 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 the seminar alone, please click here.
See You Onboard
The English are feeling the pinch in relation to recent geopolitical events and have therefore raised their security level from "Miffed" to "Peeved."
Soon, though, security levels may be raised yet again to "Irritated" or even "A Bit Cross." The English have not been "A Bit Cross" since the blitz in 1940 when tea supplies nearly ran out.
Terrorists have been re-categorized from "Tiresome" to "A Bloody Nuisance." The last time the British issued a "Bloody Nuisance" warning level was in 1588 when threatened by the Spanish Armada.
The Scots have raised their threat level from "Pissed Off" to "Let's get the
Bastards." They don't have any other levels. This is the reason they have been used on the front line of the British army for the last 300 years.
The French government announced yesterday that it has raised its terror alert
level from "Run" to "Hide." The only two higher levels in France are "Collaborate" and "Surrender." The rise was precipitated by a recent fire that destroyed France's white flag factory, effectively paralyzing the country's military capability.
Italy has increased the alert level from "Shout Loudly and Excitedly" to
"Elaborate Military Posturing." Two more levels remain: "Ineffective Combat Operations" and "Change Sides."
The Germans have increased their alert state from "Disdainful Arrogance" to
"Dress in Uniform and Sing Marching Songs." They also have two higher levels: "Invade a Neighbor" and "Lose."
Belgians, on the other hand, are all on holiday as usual; the only threat they
are worried about is NATO pulling out of Brussels.
The Spanish are all excited to see their new submarines ready to deploy. These beautifully designed subs have glass bottoms, so the new Spanish navy can get a really good look at the old Spanish navy.
Australia, meanwhile, has raised its security level from "No worries" to
"She'll be alright, Mate." Two more escalation levels remain: "Crikey! I think we'll need to cancel the Barbie this weekend!" and "The Barbie is canceled." So far, no situation has ever warranted the use of the final escalation level.
-- John Cleese - British writer, actor, and tall person.
2015 in Marrakesh, Morocco
“Bonds are priced artificially because you’ve got some guy buying tens of billions of dollars’ worth a month. That will change at some point, and when it does, people are going to lose a lot of money,” said the Oracle of Omaha, Warren Buffett.