Apologies for the late email, we have been experiencing technical difficulties with our service provider. Well folks, while the market has disappointed this week, yesterday’s trade on $GSM has profited 5% thus far - as such, remember that if you’re trading our picks to do so with a stop loss and follow our recommended timelines to the letter. Panning to today’s report, we have some great pieces on Apple’s bold move to bring chip production back to the USA and Canadian PM, Justin Trudeau’s Xi Jinping problem, which was evident when the Chinese leader scolded Trudeau for leaking an earlier conversation of theirs to the press. Read on for your daily dose of market inspiration in this 154th edition of the Coachman’s Report!
Markets in Review
After trading sideways through most of the week, the S&P alongside other major indices are posturing down largely in the premarket. Futures on the Dow, S&P and Nasdaq are down 94, 109 and 121 bps at the time of writing. Upon almost reaching its resistance which is marked by the 200-day MA, in this case, the S&P has regressed down - which is interesting given the strong economic data released in the housing sector this morning as Building permits and Housing starts both narrowly beat expectations. Lastly, despite trading down, the weekly AAII Investor Sentiment survey released yesterday has indicated a larger share of investors in the bullish camp and fewer holding a bearish outlook since last week - see the historical figures here.
Short: Star Bulk Carriers Corp. (SBLK-NASDAQ) | Timeline: 2 days
Star Bulk Carriers Corp. (SBLK), a shipping company that engages in the ocean transportation of dry bulk cargoes worldwide, reported earnings yesterday after the market closed. The company missed earnings and revenue estimates by 4.85% and 6.79%, respectively, on top of reporting a net income of $109.7 million, compared to last year’s net income of $220.4 million as inflationary pressure continues to increase the cost of goods and services worldwide. (Full Story) Referring to the chart, SBLK has felt the market's pain throughout this year, falling over 40% from May of this year. That said, the stock has consolidated in the high teens and has formed a bearish flag - most likely resulting in another spike in short volume, especially with the Stochastic RSI carrying plenty of bearish momentum.
Zooming out...
Apple’s Moving Home In a bold move that shocked many, except Warren Buffet of course, Tim Cook announced internally that Apple would be sourcing chips from the USA as of 2024. Cook claims that the company’s already made the decision to purchase from a factory out of Arizona. Many have connected the dots to the planned TSMC facility there, and Warren Buffett’s recent announcement of over $4b worth of TSMC stock. The geopolitical pressure to move is there, of course, however, this pressure has existed for decades. This bold pivot seems like the first move of many that will begin to reduce the tech sector’s, and therefore the world’s dependence on China and its close neighbours. Justin from Canada’s Xi Problem
During the G20 many extremely important summits were held regarding the future of our world- and although these talks were controversial in nature- the most shocking conversation was heard in an informal setting. Outside of the conference hall, Chinese leader Xi Jinping approached Canadian PM Trudeau and began chastising him for leaking elements of their earlier conversation to the press. (Full Video Here) It’s not necessarily the contents of the conversation that had many worried, it was Xi’s tone, and the “suggestions” made rather than the demands laid out. Especially after a conversation in which Trudeau was addressing XI’s influence in Canada, and at a time when many Canadians are feeling weary of China’s influence in the nation’s capital, Xi talking down to Trudeau like a disobedient son has dismayed many.
Making headlines...
Silbert’s Once-$10 Billion Crypto Empire Is Showing Cracks
Suspended withdrawals at cryptocurrency brokerage Genesis amid the widening crypto-market meltdown have cast an unwanted spotlight on Barry Silbert, the man at the helm of the Digital Currency Group empire. (Full Story)
Facebook still banning Trump - for now - despite campaign
The social media platform has no plans to reinstate Trump's account following the former president's announcement that he will seek a second term in the White House, the company confirmed Wednesday. (Full Story)
G-20 leaders end summit condemning Russia despite divisions
Members of the Group of 20 leading economies ended their summit Wednesday with a declaration of firm condemnation of the war in Ukraine and a warning that the conflict is making an already delicate world economy worse. (Full Story)
Taiwan's APEC envoy at the center of processor chip tension
Taiwan’s envoy to a gathering of Asia-Pacific leaders is the 91-year-old billionaire founder of a computer chip manufacturing giant that operated behind the scenes for decades before being thrust into the center of U.S.-Chinese tension over technology and security. (Full Story)
PETA Urges Boycott of coconut milk from Thailand overuse of monkey labour
A recent investigation by People for the Ethical Treatment of Animals (PETA) is alleging that Thai producers of coconut milk are engaging in “rampant abuse” of monkey labour, in which the chained primates are forced to spend long hours picking heavy coconuts. (Full Story)
Chart of the Day: Consumers are borrowing an increasing amount of money to fuel purchases as their incomes fail to keep up with inflation.
“A man’s worth is no greater than the worth of his ambitions.”
― Marcus Aurelius
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