Podcast EP 61 Gov't Open But who Cares? (Oct 2)
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Show Notes

Summary of the day

Markets lost a 200 pt move higher over the weekend after the govt agreed on a temp bill to bless us with no shutdown for 45 days. The intraday action provided 4 sikes or fakeouts to the upside. If you watched breadth all day, it would have told you not to go long. They also tried to save the market by bidding the Magnificent 7, but they too closed off their highs.

What would we do without the govt bloat. Thank goodness for their benevolence in finding a stop gap for 45 days…when we can do this all over again

Airbnb ($ABNB) Is Fundamentally Broken, Its CEO Says. He Plans to Fix It. “We never fully built the foundation,” Brian Chesky says in a revelatory interview. “It had four pillars when we needed to have 10.”

Germany's Birkenstock ($BIRK) targets $9.2 billion valuation in New York IPO. This means as a public co they will be forced to discount heavily in slow times. I love wearing Birks in the summer.

11am Breadth check

11:15am

Another attempt to buy the mag 7 to boost equitie

$VFS Where are the regulators

11:30am

There is that 4335 level again. This bounce can’t stick with yields busting up

12:30 lunch break. How we doing? Imagine if mag 7 were not green?

1:15 pm

#Magnificent7 losing steam. Oh boy. If this continues we can have a 300+ down day easy

2pm

You tell me. Does this look like bullish breadth?

Breadth (as of 3:30pm)

• 48 new highs

• 793 new lows

• 18% advancing 79% declining

• 83% below 50 day ma

Stuck out

Lost the weekend pop on the Govt No-shutdown news

Strong

Relatively speaking, the Magnificent 7 was holding up the market all day

Yields

Volatility

Weak

Russell 2k

$VFS

$CVNA

$PI

$KGC

$SLV

$AFRM

$AI

$ALLY

$GDXJ

$KVYO

$KRE

$ARM

What to watch

Watch mag 7

Watch yields

Economic data

https://www.marketwatch.com/economy-politics/calendar) 

Financial Freedom is not free, but the pursuit is worth the treasure.

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