Dawn Report – January 7, 2022

While politics dominated yesterday, the markets had my attention.

It was a fairly hopeful day. If you were paying attention to the headlines, it was all doom, conflict, and controversy.

And yes, both the Dow and the NASDAQ composite lost ground.

Still, it wasn’t a wholesale collapse. The NASDAQ composite almost gained and futures were up late last night, though they are declining this morning. It is a mixed picture and both bulls and bears have reason for hope.

The fact is that any news about interest rates tends to make the markets overreact.

It’s reading the tea leaves… making speculative guesses on what might happen with the overall economy.

Investigating specific companies brings the problem to a more measurable level.

It’s not just that there’s always a bull market somewhere, it’s that there are explosive opportunities each and every day.

It’s my goal to provide at least one of these to you Before the Bell… free.

Just click here to subscribe.

Yes, there it’s a great deal of unrest in the market. But where others see turmoil, I’m optimistic.

And I’ll give you reasons why every trading day… before the action on the Street has even begun.

Let’s prosper together.

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”


Division In DC, SBUX Walkout, NFLX Heading Down?

  • President Biden Blames Trump – President Joe Biden accused former president Donald Trump of having “created and spread a web of lies about the 2020 election.” However, from March to September 2021, the number of Republicans who thought that law enforcement should prosecute those who entered the Capitol dropped by 22%. Former president Trump fired back with his own statement, calling President Biden divisive. If a rematch were to be held today, most polls show Donald Trump would win.

  • Living With COVID – Perhaps one of the reasons why President Biden is having a hard time is because, fairly or unfairly, many thought the Biden Administration would bring an end to the COVID-19 pandemic. That no longer seems like a possibility. Politico reported sources from both outside and inside the Administration say that “there’s little new left for the federal government to do but hold on and hope the worst is over soon.”

  • Starbucks Walkout Doesn’t Dent Stock – The only unionized Starbucks in the United States is suffering from a walkout by staff. According to one barista, 1/3 of the employees are out because of COVID-19. Still, SBUX rose slightly during the trading day and even more during after-hours.

  • NFLX Faces Danger, Says Analyst – JPMorgan analyst Doug Anmuth reduced his target on NFLX to $725, arguing that the smash hit “Squid Game” may have led to a number of subscriptions that can’t be retained. Subscription growth had slowed as the year ended. NFLX was down more than 2.5% yesterday.


HOT SPOTS: What’s Going on in Geopolitics

  • China Denies Nuke Buildup – Fu Cong of the Chinese Foreign Ministry said that it was “untrue” that China was “expanding dramatically its nuclear capabilities.” The Defense Department reported in November 2021 than China could have more than 1,000 nuclear warheads by 2030.

  • No Surrender In Taiwan – Taiwanese soldiers trained in urban combat in preparation of an invasion from the mainland. “Any future battle to protect Taiwan will be an urban warfare,” said Kiwi Yang of the country’s Army Infantry School.

  • Russians Paratroopers Enter Kazakhstan – As part of a regional alliance, Russian paratroopers have entered Kazakhstan to help end violent protests. Though both sides are obviously putting out their own propaganda, there are reports of both police and protesters being killed.

CUTTING EDGE: Whats Happening In Tech

  • Ark Sells TSLA, Buys PLTR – Cathie Wood’s Ark Investment Management sold about 4,620 shares of Tesla (TSLA), helping push the stock to a more than 2% decline. However, Ark also bought about 430,000 shares of Palantir (PLTR) – though PLTR declined more than 1%.

  • Good Work If You Can Get It – A new report shows that Apple (AAPL) CEO Tim Cook made about $100 million last year in compensation – mostly in the form of restricted Apple stock units. It was about 7 times what he made the year before.

  • GameStop Is Doing The Thing Again – You thought meme stocks were over? You thought wrong. GameStop (GME) surged in double-digits during after-hours trading as The Wall Street Journal reported that the company is starting a Non-Fungible Token (NFT) division. AMC was also up, as “apes” (as some meme traders sub themselves) mused that the cinema chain might use a similar tactic to cut down debt.

Who needs returns when you can have a NFT?


“Investors should go forward with eyes open.”

Don’t bet against Elon Musk. It’s a lesson that short sellers have internalized over the last few years. Tesla (TSLA) is an EV titan. But has Musk finally bitten off more than he can chew? Mr. X breaks down the political challenges that the TecnoKing has brought on himself – and why shareholders need to be aware of the dangers.


Is Bitcoin The Greatest Ponzi

Scheme of All Time?