DHUnplugged #728: Wild Ride

Wild ride for markets - election movers and groovers. Fed dousing the fire a bit. Inflation is still a thing. Nuke talk again.... PLUS we are now on Spotify and Amazon Music/Podcasts! Click HERE for Show Notes and Links DHUnplugged is now streaming live - with listener chat. Click on link on the right sidebar. Love the Show? Then how about a Donation? Follow John C. Dvorak on Twitter Follow Andrew Horowitz on Twitter DONATIONS ? OHHH - the new shirt design is coming along... Warm-Up - Up and Down - Election Confusing Markets - What a wild ride - more to come - CTP for Carvana will be closing out this coming Friday and that is it for 2024 - CTP Cup comes in December - More hacks that no one cares about - Another big bankruptcy - Nuke talks again Markets - Up and down - shine off that penny? - Every pick / comment brings on new move - Fed pours some cold water on markets - Inflation - still a thing - Something happening - only happened a few times in history ANNOUNCEMENT : AH - Chili Competition Results - 3rd Place Netflix - Jake Paul (27) and Mike Tyson (58) - 60 million people "tried" to watch - Glitches - system overload - Jake Paul took it in a 8 round decision. - Can you imagine if Netflix starts doing these live events with a $1 charge? - Jake Paul got $40M and Tyson got $20M Follow Up - Palantir - Jumps after earnings and then announcing move to NASDAQ (Nov 26) - As of last Friday - #1 performer in S&P 500 this year - Up 48% MTD and 250% YTD - Big move Friday was because it will qualify for NAZ 100 (QQQ) and lots of buying will need to be done - Good for Peter: Thiel's Palantir holdings have increased in value by about $3.2 billion since the earnings report and $2 billion since the election. Once Hot -Now Not - Here is company that we had for clients -bought low, sold higher, bought some more higher, sold on way down - Super Micro - SMCI - was a darling for some time - then a few short sellers attacked - stock sold off - Company decided to follow the other guys with 10-1 stock spilts - stock was as high as $1,200 per share pre split- now??? $21.75 ($217.50 comparable) - Could be kicked out of NASDAQ - Short -Sellers couldbe right - Super Micro is late in filing its 2024 year-end report with the SEC, and has yet to replace its accounting firm. --- UPDATE - Super Micro Computer secures BDO USA as lead auditor, targets key filings by early 2025 amid NASDAQ approval process (Stock up 25%) Markets - Not Often Seen - The stock market has done this only three times since January 1871 - The Shiller P/E ratio has reached a reading of 38 only three times during a bull market rally in 153 years. In December 1999, during the dot-com boom, the Shiller P/E peaked at a reading of 44.19. Meanwhile, in the first week of 2022, it very briefly lifted above 40. - On most occasions, this heat needs to be cooled... It could take time as this is a slow moving ratio/indicator - Another point - only a few times in history have we seen a market up 20% - 2 consecutive years. --- Will it continue? History shows that this needs to cool off too - but that does not mean a crash is imminent. More Cooling - Russell 2000 was HOT right after the election. - Day after it was up like 5%+++ - Last week, down 4% Hack'd - Hackers linked to a Chinese intelligence agency were able to breach T-Mobile as part of a months-long campaign to spy on the cellphone communications of high-value intelligence targets - Last Wednesday, The Federal Bureau of Investigation (FBI) and the U.S. cyber watchdog agency CISA said China-linked hackers have intercepted surveillance data intended for American law enforcement agencies after breaking into an unspecified number of telecom companies. - Earlier in October, the Journal reported that Chinese hackers accessed the networks of U.S. broadband providers, including Verizon Communications, AT&T and Lumen Technologies,