Dawn Report – January 28, 2022


The best economy in two generations…

I can’t help but express some doubt here.

A solid two-thirds of Americans think that the economy is getting worse.

Politically, the Democrats are facing an electoral challenge even more formidable than that which the president’s party traditionally faces in the midterms.

Inflation is surging as a major issue to the public…

And let’s face it, you can’t but notice some empty shelves sometimes.

Yet despite it all, economic growth is higher now than it has been since Ronald Reagan was president. Apple just posted record results… and the company sees its own future as bright, increasingly free of supply chain problems.

It’s not just about having a certain perspective. Measuring whether the economy is “good” or “bad” is something of a fool’s errand, because there’s no one measure that works.

It’s the same when it comes to the stock market. There are always specific plays you can make in order to profit from an overall market decline.

And as Apple’s results show, the fundamentals still matter most underneath it all… and it’s even better if you have some technical tools that show you an opportunity that most people are missing.

I may have found one that I describe below…

And I outline a pattern-based system of analysis that could help set you on the road to lasting success.

That’s how you consistently profit in times of high uncertainty and volatility… paradoxically as it seems, on an unshakeable foundation of solid analysis.

Keep moving,

Rising inflation, interest rate hikes, and extremely volatile chop. How do you make money in this situation? Listen closely…

Click Here for Episode 56: “Shorting with Options, Risk-Reward Concerns, and Why I Hate Economists”


Best Quarter Ever, Best Economy Since 1984, Invasion Imminent?

  • “Prepare For Impact” – President Joe Biden spoke to Ukrainian president Volodymyr Zelensky and reportedly told him to “prepare for impact” as a Russian invasion was going to happen. Official White House remarks did not suggest anything close to this. However, a Ukrainian official reportedly told CNN that talks between Ukraine and President Biden “did not go well.”

  • Blistering Economic Growth In 2021 – The American economy grew by 5.7% in 2021, generating a record 6.4 million jobs. It was the best economic growth since 1984. That said, a Gallup survey this month found less than 30% of respondents said the economy was improving, with 67% saying it was getting worse.

Does it feel like the best economy in two generations?

  • Apple Posts Record Quarter – Apple (AAPL) posted record quarterly results, with shares up 4% in after-hours. It crushed expectations… but investors should consider CEO Tim Cook’s assurance that supply constraints will ease over the coming months.

  • Robinhood Collapses In After-Hours Trading Robinhood (HOOD) estimated a 35% decline in first-quarter revenue from 2021. Active users have also declined by more than 1.5 million from the last quarter. Shares declined about 15% in after-hours trading.


HOT SPOTS: What’s Going on in Geopolitics

  • Chinese Revenue Key To Apple’s Success – Apple’s stronger than expected revenue partially rested on a 21% increase in revenue from China. Apple is now the top-smelling smartphone vendor in the world’s biggest handset market.

  • Army Orders 101st To Be Ready – The storied 101st Airborne Air Assault unit at Fort Campbell has been ordered to prepare for possible deployment as the United States braces for a possible Russian invasion of Ukraine. While President Biden has ruled out American ground forces in Ukraine, deployments to NATO allies could be very likely.

  • Spain Joins Western Nations Warning Of Sanctions – Spanish Prime Minister Pedro Sanchez warned Russa that a military invasion “would have massive and serious consequences for its economy from EU sanctions.” His words had additional importance because he was with Finland’s Prime Minister Sanna Marin. She emphasized that while Finland has no immediate plan to join NATO, Russia does not get any veto power over this decision.

CUTTING EDGE: Whats Happening In Tech

  • Amazon Lobbies For Legalizing Marijuana – Amazon (AMZN) is putting its formidable lobbying power behind a bipartisan effort to legalize marijuana. Specifically, the company endorsed a bill by Republican Rep. Nancy Mace of South Carolina that would end federal prohibition. Some suspect that this is part of an effort that will allow AMZN to expand its workforce.

  • Repurposed Cancer Treatment Shrinks Tumors In Muscle – An immunotherapy already used by the UK’s National Health Service has been shown to dramatically shrink tumors in mice after new improvements are added to the process. Certain tumor-fighting cells can already be multiplied and reinjected into patients, though they are of limited effectiveness. A new technique improves performance of the cells, theoretically opening the door to far better results in cancer patients. The research is being undertaken by Northwestern University in Illinois.

  • Musk Offered Teen Money To Stop Tracking His Private Jet – Last fall, Elon Musk offered a teenager $5,000 to end the Twitter handle @ElonJet. The account uses public data from the FDA to track the Tesla Tecnoking’s private jet. Jack Sweeney, who runs the account, declined the offer.

Sweeney reportedly “joked” he might have closed
the account in exchange for a Model 3.


“From above the 200sma to below it in about 15 minutes…
That may have been one of the quickest fake-outs in the SPY that I’ve seen in a while.”

It’s a time of high volatility, extreme emotions driving pessimism, and uncertainty from both Wall Street and Washington. In this kind of environment, you want something solid you can use in the future. Corey Snyder outlines a trading idea you can use now and an analytic framework you can use for the long-run.