Dawn Report – January 12, 2022

Sometimes it feels like there is one world layered upon the other.

In the “metaverse,” the digital world that is being created by several companies who believe our shopping, social interactions, and work will be done online, there is already a “real estate” boom.

Companies are investing hundreds of thousands of dollars into buying parcels of land in the metaverse. For example, one plot in the online environment called “Decentraland” sold in November for $2.4 million.

That’s a lot of money to pay for something that most people don’t really understand. It almost makes NFTs look sensible.

Meanwhile, in the real world, negotiations continue between the United States and Russia over one of the most dangerous territorial disputes.

Russia has annexed Crimea – but Ukraine (and the West) have never recognized it. Currently, hundreds of thousands of Russian troops are on the borders of Ukraine (well, what’s left of it) and another shooting war in Europe isn’t outside the realm of possibility.

The metaverse is a target for both political and economic action. At the same time, “old-fashioned” concerns like energy and territorial acquisition are coming back in a big way.

The future belongs to those who can confidently act in both environments.

Don’t miss today’s “Spy Tale” from one of those who can navigate any environment, Dr. Kent Moors.

Though it covers the initial Russian actions against Crimea, it could be ripped from the headlines today – and may provide a guide to what’s coming next.

Keep moving,

Another great episode packed full of critical information for options traders of all levels. This week Chris discusses the prediction of the Santa Rally and how the market was telling us to get ready for some time. He keys in on the power market analysis using the put-call ratio, futures, and $TICK charts to determine likely reversal points. According to Chris this is a critical time to make money as things will get more difficult as the year progresses. In his words, “making money isn’t difficult, but keeping it is.”

Click Here for Episode 53: “Options Trading – Profitable Mistakes, PC Ratio, and Following Signals”


DOJ Moves On Domestic Terror, Dimon All Smiles, Fed Targets Inflation

  • “Transitory” No More – Federal Reserve Chair Jerome Powell told the Senate Banking Committee that “if we have to raise interest rates more over time, we will.” The committee hearing was not without controversy – Democrats repeatedly expressed concerns that rate hikes could handicap attempts to boost hiring and lead to unemployment for vulnerable groups. Powell shot back that inflation is just as likely to hurt America’s poorest.

  • Jamie Dimon Projects Optimism – JPMorgan Chase head Jamie Dimon gave a rosy projection of America’s immediate economic future. “We’re going to have the best growth we’ve ever had this year, I think since maybe sometime after the Great Depression,” he said. Interestingly, Dimon also said that inflation might not be as bad as people think – but also that the Fed could raise rates more than four times this year. Of course, if interest rates go up, banks tend to benefit.

  • Domestic Terror Takes Center Stage – The Justice Department is bringing the War on Terrorism home by forming a specialized unit focused on domestic terrorism. “We have seen a growing threat from those who are motivated by racial animus, as well as those who ascribe to extremist anti-government and anti-authority ideologies,” said Assistant Attorney General Matthew Olsen. However, because there is no statute that covers what exactly is “domestic terrorism,” both progressive and conservative critics worry about the possible impact on Americans’ civil liberties.

  • Americans Falling Into Debt – While Jamie Dimon may be happy with the way things are going, many Americans are struggling. Median income has fallen by 3% over the last two years even as the cost of living has increased by almost 7%. The biggest offenders – housing and medical care. By the way, did I mention COVID-19 hospitalization in the United States just hit another record? COVID-19 patients now fill about 30% of all hospital beds in the country.


HOT SPOTS: What’s Going on in Geopolitics

  • Kanye West May Meet Putin – As Russia and the United States struggle to make progress on peace talks that could prevent a world war, the globe knows only one man can save it – Kanye West. The rapper will be traveling to Russia to host a Christian “Sunday Service” event. There are conflicting reports about whether Kanye West will meet Russian President Vladimir Putin. I mean, stranger things have happened. Remember Dennis Rodman in North Korea?

  • The End For Boris Johnson? – Perhaps more than any other individual, British Prime Minister Boris Johnson bears responsibility for Brexit. However, his successful quest for power may be at an end. Repeated reports that the PM is breaking his own government’s COVID-19 lockdown rules are leading to calls for his resignation from his own party.

  • Troops May Leave Kazakhstan – The intervention by Russia and other powers to squelch a popular rebellion in Kazakhstan appears to have worked for now. President Kassym-Jomart Tokayev said troops would be leaving over the next 10 days. However, he’s not going back to the status quo. The president is going to be targeting the wealthy supporters of his predecessor, implementing a new government, broadening social services… and beefing up security forces to prevent a repeat.

CUTTING EDGE: Whats Happening In Tech

  • End Of Omicron? – Good news everyone! Some scientists are arguing that there will be a major drop in the omicron infection rate in the United States and the United Kingdom. The bad news… it’s because it spread so fast that it is running out of people to infect. “It’s going to come down as fast as it went up,” said Professor Ali Mokdad of the University of Washington.

  • Macron Targets Foreign Social Media – French President Emmanuel Macron is facing a tough challenge from the right in this year’s presidential race. In his new year’s speech, Macron is setting out one of his key themes of the election – combatting online “propaganda.” “Online platforms, influencers, and also citizens who sometimes take a considerable place in the public debate” must have a “framework of responsibility that has yet to be built.” That might be bad news for American-based social media companies, which Macron says must be subject to French law.

  • IMF: Crypto No Longer A Hedge – In research published Tuesday, the International Monetary Fund claimed that the value of cryptocurrencies tends to track the stock market and is therefore a poor hedge. “The correlation of crypto assets with traditional holdings like stocks has increased significantly, which limits their perceived risk diversification benefits and raises the risk of contagion across financial markets,” wrote two IMF analysts.

The new economy looks a lot like the old economy


“I was re-reading Grandmaster Rickson Gracie’s autobiography, ‘Breathe: A Life in Flow,’ a few days ago, and there are many lessons that apply directly to trading.”

Trading isn’t just something you do. It’s a way of life. That means the things that work best in your life will work best for your trading success. Your Options Coach Chris Hood cites some of the lessons from one of the greatest mixed martial artists in history… and how you can use them to make a profit today.



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