Just yesterday, he discussed recent issues for one of Tesla's big projects. And today, we're sharing an essay from our friend Sean Michael Cummings over at our corporate affiliate Stansberry Research, who also warns about getting swept up in hype surrounding Musk...
Sean's essay was originally published in the March 30 edition of Stansberry's free DailyWealth e-letter. He shares more reasons to be cautious... and discusses a good strategy to protect your money and keep your emotions in check amid hype.
Please also note that the markets and our Chaikin Analytics offices will be closed tomorrow, April 3, for Good Friday. So we won't publish our Chaikin PowerFeed e-letter. We hope you enjoy the long weekend. And you can expect to receive your next issue on Monday, April 6.
Now, we'll turn it over to Sean...
What Disco Music Says About This Looming IPO
By Sean Michael Cummings, analyst, Stansberry Research
If you believe TikTok, you can make easy money by listening to disco...
Last Monday, the Wall Street Journal wrote about a viral get-rich-quick trend. According to the article, TikTok users are reporting financial windfalls upon listening to Anita Ward's 1979 song "Ring My Bell."
They say it's like a good-luck charm... attracting new job offers, big tips, surprise refunds, and more.
Streams of the song surged 10-fold on Spotify between last December and March. Paris Hilton even played the song at the closing bell of the New York Stock Exchange last month.
Of course, a song can't make you money. But that's not the point.
This craze is an example of animal spirits – when emotion and excitement override logic in the market.
Animal spirits are always a factor in investing. But now, we're in the middle innings of a technology-driven bull market.
The top companies are blurring the line between science fiction and reality. Flashy ideas get people excited. Even in market pullbacks, some investors chase the hype even harder, hoping for the "next big thing."
One tech company is a perfect example today. Its big promises continue to whip up animal spirits...
That's the urgent warning from one mystery expert, a former hedge-fund insider who tracked positions as large as $200 million. He has never spoken publicly like this. But on April 7 at 10 a.m. Eastern time, he'll detail exactly what to expect from the stock market moving forward... and give you the ONE money move he says you need to make immediately. Learn more and save your free seat while you can.
Whitney Tilson shocked the nation on 60 Minutes when he accused a major company of poisoning its customers. The investigation won an Emmy, and the stock fell nearly 80%. (He also called the housing crisis and the collapse of Bear Stearns and Lehman Brothers.) Now, he's releasing his next big story. He says a dangerous pattern is forming, and most Americans have no idea how exposed they really are. For the full presentation, go here.
Beware the Market's New Moonshot Mania
Last month, we got a glimpse of the factory that could help humans colonize space...
On March 21, Tesla (TSLA) and SpaceX CEO Elon Musk unveiled his plan for a massive $25 billion semiconductor factory. The plant, called "Terafab," would bring the globally fragmented chip supply chain under one roof.
Musk's companies currently get their chips from other semiconductor manufacturers, like Samsung. So he has good reason to try making his own.
He says Terafab will be the biggest chip-building plant on the planet. But his ambition doesn't end there...
Musk also said these chips will go into the systems and rockets that will help make us an intergalactic civilization.
This pitch resembles the "Ring My Bell" craze. It's full of animal spirits... But investors might be trusting their money to a song.
Musk has sold investors on "vaporware" before – exciting tech products that don't exist yet.
For example, Tesla owners have been promised Full Self-Driving vehicles for nearly a decade. But as recently as 2024, the Insurance Institute for Highway Safety ("IIHS") rated Tesla's automated driving as "poor."
The company has a history of selling big dreams long before real products are finished.
And now, animal spirits are stirring over SpaceX. Anticipation has been building recently over an expected initial public offering. The aerospace company is expected to hit the markets later this year.
It remains to be seen if Musk can achieve his ambitions with Terafab and SpaceX... And even if he can't, Tesla's stock price might not suffer.
But investors need to keep their wits about them in 2026.
There's a growing strain of magical thinking in the markets. The hype cycles around "Ring My Bell" and Terafab could signal that folks are chasing gains based on emotion.
You don't have to get caught up in it.
By following a disciplined approach, you can avoid buying based on hype and ensure your portfolio is safe. Remember to use proper position sizing. You can always speculate on moonshots with smaller amounts of money and scale in gradually.
Trailing stops are another great way to protect your principal investment. Set a mental point at which you'll sell, before you buy. With a 25% trailing stop, for example, you'd sell if the stock falls 25% from its peak.
Maybe humanity is headed to Mars... or maybe we're not.
But until we know for sure, a trailing stop can help protect you from the animal spirits in today's market – and promises of easy money.
Good investing,
Sean Michael Cummings Editor's note: Stansberry Research is gearing up for a major event...
In short, a mystery tech insider who once said "no" to two of history's greatest traders is coming forward... to share the one move he says anybody with money in U.S. stocks should make immediately. His system has flagged 442 winning trades since 2017. And now, he'll be revealing it publicly for the first time.
— According to the Chaikin Power Bar, Small Cap stocks are somewhat more Bullish than Large Cap stocks. Major indexes are mixed.
* * * *
Sector Tracker
Sector movement over the last 5 days
Materials
+2.13%
Utilities
+1.9%
Real Estate
+1.69%
Health Care
+1.02%
Financial
+0.2%
Consumer Staples
-0.06%
Communication
-0.18%
Industrials
-0.41%
Consumer Discretionary
-0.84%
Information Technology
-1.35%
Energy
-2.64%
* * * *
Industry Focus
Dow Jones REIT Services
8
49
42
Over the past 6 months, the Dow Jones REIT subsector (RWR) has outperformed the S&P 500 by +3.08%. However, its Power Bar ratio, which measures future potential, is Very Weak, with more Bearish than Bullish stocks. It is currently ranked #19 of 21 subsectors and has moved down 1 slot over the past week.
Indicative Stocks
XRN
Chiron Real Estate I
AIV
Apartment Investment
BDN
Brandywine Realty Tr
* * * *
Top Movers
Gainers
WDC
+10.07%
SNDK
+9.03%
MU
+8.88%
INTC
+8.84%
STX
+8.0%
Losers
NKE
-15.51%
APTV
-10.58%
LW
-8.94%
TPL
-7.45%
ARE
-6.74%
* * * *
Earnings Report
Earnings Surprises
CALM Cal-Maine Foods, Inc.
Q3
$1.06
Beat by $0.28
LW Lamb Weston Holdings, Inc.
Q3
$0.72
Beat by $0.11
UNF UniFirst Corporation
Q2
$1.25
Beat by $0.04
* * * *
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