Get on with it J. Pow

Good morning!

Wall Street’s on track for another downer of a day after yesterday’s extraordinary point swing. I can’t say I am surprised … despite a higher finish yesterday, there was still more negative volume than positive volume, although greatly reduced from the 9:1 negative we saw early on.

Here’s my playbook.

1 – What it’ll take to clear the decks

The Fed starts its two-day meeting today and is widely expected to issue more statements about their willingness to fight inflation.

Here’s a thought Chairman Powell … why don’t you actually DO something about it. Get it over with … the entire world knew inflation was out of the bag while you jaw-boned about it being transitory. (Read)

Meanwhile, buying more puts and adding to inverse funds makes all kinds of sense.

I think the markets will retest yesterday’s lows because that’s what will be needed to clear the deck ahead of the Fed. There’s still way too much leverage in the system and the only way that comes out is for the Fed to pull the punchbowl.

2 – Ford shuts off orders for the $20k Maverick truck

I’ve long said that the first company producing a cheap EV or at least a hybrid would take home all the marbles and, on Jan 12 I tweeted this. Then, got blown out by a hostile mob who insisted it was ugly, underpowered, and just downright not worthy of the Ford truck reputation.

Yep – all true … and Ford has now taken so many orders in search of more affordable new vehicles that they’re being forced to shut down the ordering process!!! (Read)

Ford’s a stock I’d love to own, but when the selling stops and at lower prices. Selling puts and LowBall Orders …

3 – A ride to nowhere

Peloton just can’t catch a break. Mr. Big of HBO Sex and the City fame died after a heart attack on one of the company’s bikes. The company was featured in “And Just Like That.” Now, Mike “Wags” Wagner has a heart attack while riding his Peloton on “Billions.”

The company, of course, denies providing equipment or allowing it to be used naturally; I have a hard time believing that but I digress. What catches my attention is that activist investor Jason Aintabi of Blackwells Capital has called for CEO John Foley to be sent packing and for the board of directors to consider selling the company.

The stock is done. Maybe – just maybe – it’s worth about $15 a share.

4 – The last thing I want to see

Dyspatch, an email startup, is combining email tools to create tools that increase engagement rates. Frankly, that’s the last damn thing I want to see personally … more email designed to trick me into opening it. The real jump is going to be AI that sends you what you’re really looking for, not a collection of slickly designed crap. (Read)

Google, by the way, is facing any number of lawsuits for reportedly continuing to track users after they opted out of location tracking. Wonder what they’ll do when somebody figures out the email thingy. (Read)

5 – Slurpee subscription

Even 7-11 is taking a page from tech. The company’s announced a 7Now Gold Pass and for $5.95 a month you can choose from more than 3,000 items for home delivery. No word on whether you can mix flavours or get one of those cool spoon straws I loved as a kid, though. (Read)

Bottom Line

There are a lot of people who are getting extremely upset about current market conditions and I get that. But doing so plays right into Wall Street’s hands.

Wall Street has spent billions studying how to push your buttons. They know that creating volatility, scary headlines and ratings that are more cooked than a Christmas goose makes you emotionally unstable and prone to bad decision making.

Don’t give the bastards the satisfaction.

If you’ve got doubts, zoom out.

Buy the best companies making products and services the world cannot live without. Then, manage risk at all times to ensure you’re on track. Invest consistently and often.

I will be with you every step of the way.

You got this – I promise!


Keith