Joel Elconin – Inflation, Retail Sales Expectations, The Rotation Out Of FAANGs , And The Crypto Crash
Joel Elconin, Co-Host of the Benzinga PreMarket Prep Show and Editor of the PreMarket Prep website, joins us to discuss the continued rally in equities, and the rotation trade out of sector leading FAANG stocks, and the importance of diversification in one’s portfolio. We start off by recapping the market take on the recent CPI and PPI inflation data from the last 2 weeks, and how this shifted expectations for Fed policy moving forward.
Next we shift over to the retail sector, and how Walmart raised the bar for the holiday season, on to have Target dash those dreams shortly thereafter, with many other stocks following a similar pattern of a big pop, followed by a drop. The discussion then gets into the huge valuation mismatches still seen in many of the tech and growth stocks, only compounded by this recent rally in many sectors and stocks. We postulate that after this there may be a rotation out of the FAANG stocks, and into other market sectors, as investors seek new leadership in many indexes. We wrap up by getting the technical levels and trajectory that Joel is looking at as far as the cryptocurrencies.
Tom Brady’s FTX Partner Admits $16Bn Crypto Blunder on Twitter: ‘I’m Sorry’
Emma Mayer – Friday
“Cryptocurrency company FTX is at risk of losing billions, and CEO Samuel Bankman-Fried, who often goes by his initials, SBF, admitted to the blunder on Twitter, offering an apology.”
On Wednesday, Bankman-Fried wrote a series of 22 tweets, explaining the situation and apologizing to his followers.
“I’m sorry. That’s the biggest thing. I f***** up, and should have done better,” he posted.
“FTX investors and token-holders, including Tampa Bay Buccaneers quarterback Tom Brady, who closed an equity deal with FTX in June 2021 and became a prominent face of the cryptocurrency company, along with his then-wife Gisele Bündchen, have had to wrestle with the repercussions after rival company Binance walked away from a deal to rescue FTX.”
We said it on here when it happened, that when Tom Brady got “laser eyes” on his online pictures (typical of the crypto pied pipers like Michael Saylor and Anthony Pompliano who this time last year saw themselves as demigods…), and when Matt Damon started doing crypto commercials that it was a bell ringing for the next crypto implosion.
What is crazy is that this FTX debacle is not the first exchange related malfunction. We’ve already seen a half dozen different crypto exchanges get hacked, have funds and withdrawals frozen, or shut down as scams with the people running for cover overseas. It’s criminal, it’s tragic for those of the herd that put their money into these 3rd party exchanges to be the custodians of the actual crypto being bought and sold, and somehow, very few ever get prosecuted.
What is interesting about SBF is that he had been brought into to speak in front of congress, was throwing his weight around in politics back the Biden administrations campaign with millions of dollars, and had bought up all this advertising and signage in major sporting events. He was seen as a “good guy” but clearly, by playing games with the money people gave his exchange to try and do trading and squeeze more money out things instead of just keeping it on hand, and then getting caught swimming naked when the crypto tide went out…. it illustrates he is a “bad guy.”
So while tons of crypto investors and institutions lost huge sums of money due to his fiscal malfeasance at FTX, hey…. at least he apologized. That will make everyone whole again… right? 😉
“I’m sorry. That’s the biggest thing. I f***** up, and should have done better,” he posted.
Yeah, Sammy boy…. you should have done much better…. now you should ponder this behind the stiped bars… but alas… he fled the country. “Diamond hands.”
But…but he said he was sorry. Try that in front of a jury. Make sure they are invested in cryptos first.
“I’m sorry!” https://www.youtube.com/watch?v=BGLR25EJtfE
Oh, the poor Brady’s, having made their wedding vows before God Almighty, why now comes millions meltdown??
Divorce is not acceptable. Work it out superior fools———–
Crypto Bros Are Getting Exactly What They Want Out Of The Market
Jesse Felder – The Felder Report – November 16, 2022
“We all play all Wile E. Coyote at one time or another in our lives, chasing something that somewhere deep inside we know is unattainable but we simply can’t resist the urge to throw all caution to the wind and plunge ahead in pursuit of it. In the markets, we see it time and time again. From paying more than the value of a high-end Holland home for a single tulip bulb to sending Japanese real estate prices so high that the ground beneath Tokyo’s Imperial Palace (consisting of just 0.44 square miles) becomes more valuable than the entire state of California, investors fail to resist the temptation of easy money and, in doing so, fall prey to the inevitable consequences of unbridled greed.”
“The latest example of this is the cryptocurrency craze. As an investment, cryptocurrencies make very little (if any) rational sense; in fact, there’s little reason to believe they are anything more than elaborate ponzi schemes. What they do offer, however, is a strong sense of community, a feeling of intellectual superiority, hope of an easy path to financial freedom and, perhaps most importantly, the thrill and agony of wild volatility.”
“As Seykota suggested over 30 years ago, Joe Crypto is getting exactly what he wants out of the market. Rather than a solid investment, he gets, ‘a lot of excitement, he gets to be a martyr, he gets sympathy from his friends, and he gets to be the center of attention.’ In truth, these are priorities he holds above succeeding in the markets and, for this very reason, these are exactly what he manifests.”
Continuing the journey to the bottom of the range. I wonder what side of the trade the Banks and Hedge Funds are on.
The winning side…
Statement from CEO of FTX: We got “over confident and Careless”.
Translation: we stole too much too fast.
Biggest Glitch: when copying the Central Banking business model, they failed to get a money printing machine to cover crimes as they went.
Bottom line: gold positive outside the alternate universe.
Printing, like on paper? I thought cryptos were just electronic ones and zeros on the information superhighway.
They maybe didn’t have a helicopter as they don’t grow on palm trees.
All companies in the world are bad today. All shorting inside trading algos are good. (Fundamental Assessment)
Thanks to Emerita I am back to even for the day. shouldn’t have mentioned it
Emo has turned…
Emo turned again. Now if I can get more than 5 miners in the green. Should happen as all of Wall Street getting one more weekend in FTX condos in Bermuda before the Bankruptcy Courts move in full time
Emo finished up but not my account. Still range bound until my handlers get sick and die.
Ponzi, Ponzi, Ponzi! The fall of FTX and the rise of CBDC’S (Central Bank Digital Currencies) Explained. Kevin O’Leary lost a lot of money in FTX, in this video he talks about that. Listen to the guy running this scam, Sam? and his girlfriend. LOL! Make something out of nothing like the banks do. If you are in crypto’s you especially need to listen in here, Red Flag, Red Flag, Red Flag! Enjoy! LOL! DT
https://www.youtube.com/watch?v=r2N2YJEcpEk