Stock Power Daily — Weekly Wrap: Conflicting Signals

Stock Power Daily: February 5, 2023.

Weekly Wrap: Conflicting Signals Chad Stone, Managing Editor Dear Loyal Reader, I work with some brilliant minds that have helped me understand the ebbs and flows of the market and economy. And I’m glad I do because I find the same question running through my head lately: “What the heck is going on?!” On Friday we found out: Nonfarm payrolls for January blew estimates away by almost three-fold (517,000 reported versus 187,000 expected). U.S. credit card debt soared 18.5% in the fourth quarter of 2022 to a record $930.6 billion. Something doesn’t add up there… And regarding markets: Beaten-down tech stocks rocketed higher, even as the Federal Reserve hiked its fed fund rate another quarter-point. Over the last week: Meta Platforms Inc. (Nasdaq: META) climbed past the 30% mark... Peloton Interactive Inc. (Nasdaq: PTON) was up 40% at one point... And Carvana Co. (NYSE: CVNA) rocketed more than 50% higher amid volatile trading… That looks like a huge missed opportunity. But our chief investment strategist, Adam O’Dell, broke down what’s really going on there. Here’s an excerpt from his Friday piece in The Banyan Edge: Plainly, these rallies are not to be trusted. If you think you should buy shares of Tesla (TSLA) just because the stock was up 40% in January… Or that you should buy Carvana (CVNA) after its 115% surge… You are far more likely to be the “sucker” of those moves than the benefactor. See, there’s a simple explanation for how an enticing rally in the market’s “worst” stocks happens in the first place… It’s called “short covering.” Go read the rest of his piece here. I had a much clearer picture of “what the heck is going on” after I reached the end, and I think you will too. And of course, take a moment to catch up on anything you missed in Stock Power Daily below. Research analyst Matt Clark has uncovered stocks on both ends of the spectrum: some that are ignoring the market noise and climbing higher — and others that should be dumped immediately. World's 3 Richest Men Are Raving About "Imperium" — Why? Take a look at this image of the Bloomberg Billionaires Index… The four men circled here have a combined net worth of over $600 billion. And right now, they have ONE thing in common. They’re all throwing their weight behind a new technology I call “Imperium.” Musk says Imperium is “amazing” … Gates says it will be “one of the most powerful technologies of the 21st century” … and Bezos and Zuckerberg are invested to the tune of billions of dollars combined. Want to know why? Click here to discover why the world’s richest men are piling into Imperium… Here are some highlights from last week’s Stock Power Daily: $10 Billion Breakfast Industry Boosts This 93-Rated Stock: Matt apparently isn’t a huge fan of the most important meal of the day (I jest), but that’s not stopping this strong brand from outperforming the broader market. Why Intel Stock Is Now “High-Risk”: This semiconductor company’s recent earnings report was brutal. And it tanked its Stock Power Ratings even lower. Check out where it lands within our system now. 93-Rated Homebuilder Loves This Mortgage Rate Trend: Certain housing markets are still red-hot, and Matt found a “Strong Bullish” company that’s building new homes in four of these metro areas. And that’s boosting its stock price big time. That’s all for this edition of your Weekly Wrap. Do you have your own theories on what’s going on with the economy or markets? We’d love to hear your take. Feel free to email us at StockPower@MoneyandMarkets.com. Have a fantastic week. Until next time, Chad Stone Managing Editor, Money & Markets Privacy Policy The Money & Markets, P.O. Box 8378, Delray Beach, FL 33482. To ensure that you receive future issues of Money & Markets, please add info@mb.moneyandmarkets.com to your address book or whitelist within your spam settings. For customer service questions or issues, please contact us for assistance. The mailbox associated with this email address is not monitored, so please do not reply. Your feedback is very important to us so if you would like to contact us with a question or comment, please click here: https://moneyandmarkets.com/contact-us/ Legal Notice: This work is based on what we've learned as financial journalists. It may contain errors and you should not base investment decisions solely on what you read here. It's your money and your responsibility. Nothing herein should be considered personalized investment advice. 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