Next Big Thing

Don’t be surprised if there’s not a lot of upside for stocks between now and the next Fed meeting on June 14. The S&P 500 has come a long way to challenge its 52-week highs, a little breather makes sense. And if the market decides to pull back, it doesn’t mean that this rally was all BS hype. Use weakness to add quality stocks.

Bring on the Bull!

Consumer sentiment is terrible, one article said. Market breadth is much too narrow, another article said. Inflation is too stubborn and rates are headed higher, bond yields are precarious, banks are still in danger of failing, earnings aren’t rebounding, manufacturing surveys are weak, consumer credit is too high and delinquencies are spiking – they droned on and on with “proof” that there’s just no way there could actually be a new bull market in the works…

An AI Bubble?

You get a 25% one day post-earnings ramp job that adds $200 billion to an already mega-cap tech stock that’s smack in the middle of an emerging tech trend, and yeah, you’re gonna get some grumpy folks yelling “bubble!”

Position Updates May 15, 2023

Both of the AI stocks I’ve recommended, (NASDAQ: AI) and Schrodinger (NASDAQ: SDGR) are looking good. is flying today after it pre-announced a better than expected quarter. The stock was crushed 6 weeks ago by a hatchet job from short seller Hindenburg Research. But shares found support at the 200-day moving average. And this quarterly earnings report should help convince investors that the Hindenburg short report was a bunch of hooey.

AI – Artificial Inflation

Pepsi’s Frito-lay division reported a 16% gain in revenue even though sales volume was flat from the year before. It would be interesting if I could tell you that the revenue gain came from some startling Artificial Intelligence application that boosted margins for Dorito’s. But there was another kind of AI at work – artificial inflation.

Today’s Trading Plan March 8, 2023

I turned the TV on just after 10 am yesterday to watch Fed Chair Powell’s annual appearance before the Senate yesterday. It was a shameless display of self-serving Senators grandstanding to reinforce the entrenched beliefs of the various constituents that voted them into their lavish positions Makes it 5 for 5

In Monday’s article “Today’s Trading Plan” I told you that (NASDAQ: AI) had beaten earnings expectations in each of the last four quarters. I suggested it for a trade because the share price was squeezing down into the corner of a pennant and a big earnings related move looked likely.

The Case for

It’s not unusual for an emerging investment trend that’s been percolating to burst onto the scene with a frenzy of hype after a momentous event. This happened for Artificial Intelligence (AI) two weeks ago when Microsoft released a flurry of news about the ChatGPT AI app.