The term “Black Friday” has two meanings to investors…
Obviously today is the day when retail traditionally moves into the black, i.e., starts making profits.
But there is also that other “Black Friday” – which goes all the way back to an 1869 stock market crash.
There’s also Black Monday (1987), Black Tuesday (1929), and Black Thursday (also 1929).
(In the United Kingdom, there’s Black Wednesday, when the pound collapsed and financier George Soros built a huge fortune by “breaking the Bank of England.”)
We’re entering today in an optimistic mood. Futures were up early this morning.
But it’s a shortened trading day and it’s likely to be fast and furious. Three major things to keep an eye on today:
1. We have the potential for major productivity disruptions in China as the government struggles to contain a COVID-19 outbreak.
2. Ukraine faces a possible refugee crisis as winter hits a population that is without power.
3. Binance is trying to stabilize the entire crypto industry… but one gets the feeling a single link breaking could throw this whole thing apart.
Obviously, times have changed, and “Cyber Monday” may even be more important than Black Friday when it comes to looking at sales. Traditionally the days around Thanksgiving are positive for the markets.
Let’s close out strong but be ready to regroup – with the railway strike situation still unresolved, we might be heading for a winter like none other..
WORD ON THE STREET
Strike Deadline, Saving Crypto, Musk’s War
- Tyrannical TecnoKing? – The hit pieces are flying fast and furious against Elon Musk. A 2018 survey that found employees thought him an “unapproachable tyrant” is getting new media attention. Meanwhile, Elon Musk is broaching an “amnesty” for banned user accounts, with activist groups furious about their loss of control over speech. One man’s tyrant is another man’s liberator I suppose.
D-Day – If the end is coming, at least we know exactly when it’s coming. Railway unions have aligned on a December 9 strike deadline if they can’t strike a deal with management. The next few weeks are likely to feature furious rounds of negotiation, as a strike could cost the economy up to $2 billion per day.
Binance Steps Up – While Binance backed away from bailing out FTX, it is not abandoning the crypto sphere. The exchange announced a $1 billion recovery fund for the industry. It also said it could release up to $2 billion “if the need arises.”
Global Doomerism – The Institute of International Finance predicts global economic growth in 2023 will be as weak as it was in 2009. The organization said Russia’s occupation of Ukraine could become a “forever war.” It projects global economic growth of just 1.2% in 2023.
HOT SPOTS: What’s Going on in Geopolitics
- Chinese Opposition Grows Against COVID Lockdowns – Walkouts by workers, open protests, and heated online criticism are all signs that China is losing control over its people by trying to enforce its “zero COVID” model. With record cases raging in the country, Beijing may need to find a way to lighten up without endangering its credibility.
Bolsonaro Challenge Shot Down – A Brazilian judge rejected an attempt by allies of President Jair Bolsonaro to challenge the results of the recent election. For good measure, the judge imposed a $4.3 million penalty. Will Bolsonaro take it? His followers are openly calling for the military to keep him in power after his narrow defeat.
Most Ukrainians Without Power – As temperatures plummet, most people in Ukraine lack electricity to fight the cold as of this writing. NASA satellite images show Ukraine looking like North Korea, a black void in brightly lit Eastern Europe. Russian forces continue to hammer away at Ukrainians in Donetsk, with limited success.
CUTTING EDGE: What‘s Happening In Tech
- Remember To Always Negotiate Medical Bills – The FDA has approved Hemgenix, an intravenous therapy for hemophilia type B. Clinical trials showed impressive results, with the drug from CSL Behring and uniQure cutting bleeding events expected over a year by more than half. The cost for such a benefit? Only a modest $3.5 million per dose – making Hemgenix the most expensive medication in the world.
Strikes At Amazon For Black Friday – In countries around the world, workers at Amazon warehouses are planning a strike. Stars and Stripes reports employees in more than 40 countries will take part in the “Make Amazon Pay” campaign to force the company to provide better wages.
- Latest Tech Layoffs Coming At HP – Printers never work and ink is insanely expensive for some reason. These and other problems are unlikely to be solved by HP Inc. (HPQ), as the company is going to be shedding up to 6,000 employees over the next three years.
FOR YOUR CONSIDERATION
“When you find a winning trend, be sure to cash in while you can. Get as much profit as you can before it breaks.”
The Art of the Trade is, above all, the art of timing. That’s all stock and commodities trading is, when you get down to it.
The gains you don’t make are often more painful than the losses you take. Chris Hood shows how to get the most out of your winning trades… and make sure you’re leaving as little as possible on the table.
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