Dawn Report – January 18, 2022


Welcome back, but there’s no time to wait.

We hit the ground running this Tuesday morning.

In Israel, reports are coming in that even a fourth vaccination is not enough to stop the spread of COVID-19.

In Ukraine, there is still fear of a full-fledged war.

In the United States, there is a massive political shift underway to the advantage of the Republican party… but the Biden Administration is looking to make a major reset.

All of this means an extremely volatile trading environment.

This is good news. While “capital is a coward” and most businesses want a stable environment, traders may not necessarily feel the same way.

Mr. X agrees. (Don’t miss his deep dive on a new biotech play below. )

Opportunities arise when the “experts” don’t know what is going to happen next and when the Big Money hasn’t already locked down the Big Gains.

The technical approach I use locates these opportunities before the market opens… and gets them to you every trading day.

If you are subscribed to the free Before The Bell service, you already know the play I have in mind for today…

And if not, subscribe now.

I’m saying this because events are going to be moving faster and faster.

They used to say this was the End of History.

In fact, it looks like the interesting times may have just begun.

Keep moving,


This week Chris covers how options traders with less than 8 or 9 years of experience could be in for a rude awakening in 2022. It could be a year where only nimble traders with a tight plan survive…

Click Here for Episode 54: “Options Trading – Profitable Mistakes, PC Ratio, and Following Signals”


WORD ON THE STREET 

Democrats Worried, GOP Gains, Crypto.com Drama

  • Democrats Want A Reset – Leading Democrats from Sen. Bernie Sanders to Rep. Tim Ryan are calling for their party to change course and gear up for the midterm elections. Talks within the party over the president’s Build Back Better legislation are reportedly continuing but there is far more pessimism about a breakthrough. For its part, the Biden Administration is calling for patience. “The truth is – an agenda doesn’t wrap up in one year,” said Press Secretary Jen Psaki.

  • Matt Damon Did Warn Us It Would Be Dangerous – Crypto.com, which became a massive topic on social media following an ad campaign featuring Matt Damon, might want to cut money from marketing and focus on security. It suspended withdrawals over what it called “unauthorized activity” on some accounts. “All funds are safe,” it reassured investors. However, that might not calm users who reportedly said that their account balances had mysteriously changed (or vanished) over the last few days.

  • 2021: Year Of The Elephant – 2021 began with a public relations disaster for the GOP in the form of the Capitol riot, but it hasn’t hurt the party. Democrats enjoyed a nine-point lead in a Gallup poll that measured party identification in the first quarter of 2021. By the end of the fourth quarter, that had changed to a five point Republican advantage. It’s especially significant because Democrats have historically led in the party identification poll barring extraordinary circumstances. The question remains if this advantage will last until the midterms for the Republicans.

  • Ben & Jerry’s Owner To Buy Biotech? – Unilever, which owns everything from Dove soap to Ben & Jerry’s ice cream, has reportedly made a $68 billion bid to take over health care company GlaxoSmithKline’s (GSK) consumer division. It has reportedly been rejected. Unilever shareholders seem opposed to the move, with the stock declining as news broke. Nonetheless, Unilever is reportedly talking with banks about securing additional financing. That’s unlikely to improve shareholders’ mood.

 



HOT SPOTS: What’s Going on in Geopolitics

  • President Of El Salvador To Moody’s: “DGAF” – No, seriously, that’s his message. President Nayib Bukele tweeted out that his country “DGAF” about Moody’s downgrading the country’s sovereign debt due to El Salvador’s embrace of Bitcoin. The downgrade came back in July but Moody’s reportedly raised new concerns recently. El Salvador has a $800 million bond that should mature in January 2023. Whether it can pay may depend on what happens with crypto.

  • Germany Warns Russia Of Price If It Invades – These countries have quite a history. German Foreign Minister Annalena Baerbock said that Germany would not compromise on “basic principles such as territorial inviolability, the free choice of alliances and the renunciation of the threat of violence.” However, Germany’s last foreign minister, Heiko Maas, rejected a request by Ukraine for weapons last summer. Whether Germany would actually use military force if Russia invades Ukraine seems out of the question… for now.

  • SOMEONE Is Doing A “False Flag,” But We Don’t Know Who – Perhaps both countries are. Following an American accusation that Russia is preparing a “false flag” event that will justify a military invasion, Russia fired back with its own claims. Foreign Minister Sergey Lavrov said the American statement was “total disinformation.” Russia is expecting a response this week from the United States and its allies about Russia’s demand that NATO forces not be stationed in Ukraine.


CUTTING EDGE: Whats Happening In Tech

  • Maybe Five Shots Will Do It – The good news is that it boosts antibodies. The bad news is that it may not be enough. Israel has approved a second “booster” shot for vulnerable groups in the country, meaning that some have gotten four COVID-19 shots in total. However, preliminary research shows that even this may not be enough to prevent infection.

  • Houthis Attack United Arab Emirates With Drones – The United Arab Emirates is one of the world’s financial and tourism hotspots, but that doesn’t mean it is exempt from the politics of the region. The Houthi group in Yemen, backed by Iran, has reportedly launched an attack on the UAE. What makes this difference is the use of drones, a sign of how new technology is affordable enough even for non-state actors to use them. If drones become a standard part of every group’s arsenal, America’s relative military advantage could face a major challenge.

  • Space Poisons Blood – All right, it looks like launching mass colonization of the galaxy may have to wait. We have a problem. “Space anemia” is plaguing astronauts, with red blood cells being destroyed 54% more often in orbit than on Earth. Worse, this isn’t because of gravity changing the way the body works, but has something to do with being in outer space itself. The root cause remains unknown.


Terrifying aliens? No, our own cells – the biggest enemy to space flight

FOR YOUR CONSIDERATION

“Biotech stocks notoriously rise and fall on trial results. Usually, large biotech companies protect themselves from collapse via a robust pipeline. Smaller companies that concentrate on one disease are far riskier plays, but can reap great rewards if they are bought by larger companies.”

A new IPO just hit, and it is for a company that Dawn Report readers may be familiar with. We’ve discussed it before… and the opportunities could be huge now that it’s available for purchase. Mr. X breaks down the risks and rewards.

 


ROGUE RECCOMENDS

Is Bitcoin The Greatest Ponzi

Scheme of All Time?