Mad Hedge Hot Tips
May 22, 2019
The Five Most Important Things That Happened Today
(and what to do about them)
1) Fed Minutes Out at 2:00 PM EST. Now we find out what they REALLY think in this review of their last meeting six weeks ago. Will a stock market crash force them to cut interest rates? Or will a China-induced slowdown of economic data do it first? Expect the market to be dead until the release, as it usually is. The data is pre-trade war so there are still giant shoes to fall. Click here.
2) Nordstrom Gets Slaughtered, with the stock down 10%, thanks to collapsing sales and earnings. It seems no one buys shoes in Seattle anymore. Half of retailers won’t be around in a year, with the sector in a complete trade war-induced meltdown. Avoid (JWN) like the plague. There is no place to hide. Click here.
3) Existing Home Sales Shed 0.4%, to only 5.19 million units in April, despite year-low mortgage interest rates. The good news is that inventory shrank to 4.2 months. A lot of homes are now for sale at “aspirational” prices, with sellers hanging on to last year’s prices. I don’t understand why investors are buying the homebuilder stocks, unless its anticipation of the return of SALT deductions in two years. Click here.
4) Three Chinese Airlines Sue Boeing, over loss of use of the 737 MAX. The headaches are only just beginning. (BA) stock is still looking for a final bottom. Click here.
5) Heard at SALT. Some $3 trillion is spent on US Healthcare annually, 14% of GDP, but only 2% goes to prevention. Talk about aiming at where the targets AREN’T. At least 75% of human illnesses are self-induced. Click here.
Published today in the Mad Hedge Global Trading Dispatch and Mad Hedge Technology Letter:
SPECIAL ARTIFICIAL INTELLIGENCE ISSUE
(HERE’S AN EASY WAY TO PLAY ARTIFICIAL INTELLIGENCE)
(BOTZ), (NVDA), (ISRG)
(TUESDAY JULY 5 CAIRO EGYPT STRATEGY DINNER)
(WHY YOU NEED TO CONSIDER ALIBABA)