6/10 Market Update; Observations, thoughts, and trade ideas

Reddit stock forums help the PTB grow stock prices by helping to restrict shorting; I find it interesting that the meme stocks on the Reddit and stock forums focus on the most heavily shorted stocks. If the powers-that-be wanted stock prices to continue moving higher, they could effectively restrict shorting. However, they couldn’t be obvious about their intentions, because it would spook investors and traders. Instead, these powers could employ forum change agents to take control of the narrative in the stock forums and recruit the retail plebes to believe they are fighting against the evil shorts. Thus, the objectives would be achieved and no one would be the wiser. Institutional shorting would be severely curtailed as a result.

Ransomware peculiarities: It seems peculiar that the latest ransomware attacks seem to be geared towards firms that would provide perfect targets to undermine the global supply chains in energy and food. Of course, the NWO architects are successfully engineering a society to view “fossil” fuels and animal protein with disdain.

The attacks probably originated from dark intelligence forces (e.g. DoD, CIA), and were managed in a way to subsequently demonstrate how the governments could respond and locate the ransom (in this case, bitcoin). This Hegelian response operates in a way that works to further consolidate government power over the economy and the masses.

Meme stocks – ENGlobal Corp. (ENG): This is a stock that I have been holding, since the secondary announcement and the resulting retracement to the offering price. With the sharp rise in CLNE, an imperfect peer, I think we could see some upside. I am a buyer on dips and already hold a position.

I am seeing an echo rise in the former hot sectors from last year/early this year. However, as we observed with RIDE, the longer-term prospects for most of these firms remain grim. Hype can only go so far. Do not fall in love with any of these stocks. The development of EVs takes billions and the only ones worthy to transition and build out these vehicles are the preexisting behemoths.

Blackberry (BB): Though I hold a trading position, this firm really has no redeeming story, and is lost. Despite having no bullish thesis, however, we could see some upside here.

-Inflationary expectations waning?:

I am keeping any eye on longer-dated UST yields. Specifically, I am observing a descending triangle formation with the 10s and 30s, and Tuesday’s bullish UST price action dropped yields slightly below support. We need to wait for any confirmation of a trend, but this could be telling us that price inflation growth may be topping out here.

The asset markets under decelerating inflation: If inflationary growth is topping out over the next several months, we could see bond yields move lower, while the pressure on the Fed to unwind their dovish policy could diminish. Lower bond yields would help to enhance the prices of income-generating assets, but in a scenario of lower inflationary expectations, asset prices could struggle to move higher.

The current asset market scenario is well supported as inflation growth remains above trend at the same time interest rates reman suppressed. this has provided investors and traders with the best of both worlds. If inflationary expectations fall while bond yields drop as a result, asset price support would endure, but it would not be at such a strong level as now. Residential real estate could experience a slow down in demand.

Much of this stimulus was directed towards personal consumption and it is mostly a one-and-done deal. Most of this stimulus money has already been spent and is now on the balance sheets of those with the assets. Thus, the already low money velocity will slow down even further as the money trickles up to the financial and asset shell covering the real economy.

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31 thoughts on “6/10 Market Update; Observations, thoughts, and trade ideas

  1. Social spending is helping landlords with asset prices and rents.

    https://www.corelogic.com/blog/2021/6/inaccessibility-in-for-sale-housing-pushes-up-demand-for-single-family-rentals.aspx/?WT.mc_id=twtr_210211_SW0PT

    “U.S. single-family rent growth increased 5.3% in April 2021, the fastest increase since May 2006, according to the CoreLogic Single-Family Rent Index (SFRI). The index slowed in 2020, but even when compared with 2019, rent growth is running above pre-pandemic levels.”

    I love it! Let the masses hide from manufactured crises and have them chase ghosts. The wealthy keep making money. Time to raise rents.

    As much as I am a contrarian, it’s hard to bash residential real estate. I want more social policy. We need more racial and social equality. The dumbed down plebes get the shaft and the wealthiest make the profits.

  2. After I’m done dumping a bunch of money into my properties, so I can minimize my family’s taxable income this year while raising the market value of my total RE portfolio, I want to make a podcast regarding some of the items analyze when making investment decisions. Then I’ll do a 1031 exchange and defer my cap gains.

    I know I continually offend many people, but for those who are still left reading my blog, they can easily deduce that I am a contrarian by nature. Most of my decision processes involve behavioral psychology and the understanding of market participants.

    I may not be worth tens of millions, but I gave produced enough from trading, speculating, and investing over the past 20+ years, so I donn’t need a job or have to run a business. It’s not a bad thing to be worth a several million and not have to take advantage of others or work for some Antichrist business firm in the process. Fellow conservative Christias should take note as we move forward in this timeline towards the end. I hope to show others how to be financially and spiritually self-sufficient and this is the only reason I have my website.

    Spiritual self sufficiency is important, too, though that phrase may sound trite. When I first became saved, I had priests and pastors who minimized my situation. A couple priests thought I was crazy and told me to pray a bunch of Hail Marys and the pastors were overtly dismissive, but congratulated me, and said I was now assured of going to heaven. Of course, I have to believe that many of the pastors, priests, and preachers around us are members of secret societies.

    People tell me that this is too difficult to believe, but if I were a member of a secret society and wanted to inflict maximum damage on the remnant, I wouldn’t run for office or move up the corporate ladder of a corporation, I’d become an influential pastor and destroy as many souls as possible for my god.

    By the way, all the tax jurisdictions signed off and I am good to go for another year. They probably wonder how I can show a sea of red ink every year. Even the tax reviewers get confused with my 200 plus page returns. If you are a real estate investor you will know what I’m talking about. I can’t even understand my tax returns anymore. Use their tax code to your advantage.

    1. People disagree on issues and forget about the many things that they do agree on. Discussion helps us get closer to the facts.

      I noticed way too many stocks dipped today and then they bounced right around 9:45am central time. Look at the charts, very odd that so many did that all at the same time across the board!

  3. Masks are no longer mandated here in VA nor MD, yet at the stores, 95% of people are still wearing masks.

    95% is an important percentage. That is the percent of humanity that is asleep and under the social engineered mind control.

    High school commencement speeches here in Fairfax County are delivered by multiracial Islamic women who talk about a Jihad against reactionary individualism, and intimate that the white Christian male is the racist.

    I can’t think of a more oppressive religion against women than Islam. Perhaps she should move to the Middle East. She’s the typical liberal who makes a great life here, thriving off the legacy of those who came before here, and she views all religions, except conservative Christianity and Jesus, as okay.

    If she doesn’t get her heart right with Jesus, she will have a specially prepared cell in the walls of that pit. She will serve her god, according to Isaiah 14 and Ezekiel 32:18.

  4. I get asked this a lot. Is the vaccine or the jab the mark of the beast? The answer is simple. This jab is not the mark of the beast, but it is the formal roll out of the pale horse in Revelation. The Four Horsemen are all generated by Satan, but they are all very real to you and me.

    Revelation 6:7-8 KJV
    And when he had opened the fourth seal, I heard the voice of the fourth beast say, Come and see. And I looked, and behold a pale horse: and his name that sat on him was Death, and Hell followed with him.

  5. The only fly in the ointment to the bullish asset market thesis; how many people will become incapacitated over the next two-three years because of the vaccine? Lots of lost demand and forced supply as estates dump assets after death of owners.

    https://www.brighteon.com/95a240da-eee4-4975-a932-8bde4708901f

    Maybe the Fed’s owners know what’s coming and are juicing the markets in anticipation of slow-mo collapses. Tens of millions of unused doses as the people increasingly realize they’ve been lied to. I know of a guy at the gym who is no longer the same since getting jabbed. It’s as if he was lobotomized.

      1. I agree with you. I no longer recommend residential real estate. First, the prices have run up too quickly. Second, I am very concerned about the collateral damage from the covid jabs.

        With my research, it is becoming clearly evident that each vaccine has different types of characteristics and additives that make this vaccine campaign an mass experiment in motion. Some people received saline solution. Some people received non mRNA. Others receive such toxic and insidious ingredients as to make Satan blush. I have to believe that there will be some sort of mass casualty process over the next few years and we could see tens of millions of people in the United States become incapacitated by mid-decade.

        I honestly hate where I am living. I hate looking at the people. I hate looking at their blank expressions. I hate looking at their actions. I hate looking at the pride flags on the library. I hate listening to the people talk about absolutely nothing important, except the Tavistock-inspired propaganda that emanates from McLean and Arlington Virginia. It really looks like Sodom and Gomorrah.

        I hate it all and I am fixing up my houses with the option to sell sooner rather than later.

  6. The debate regarding student loan forgiveness never seems to end. Personally, I hope they forgive all the student loan debt. That’s because I benefit more than other people, including those who have had their debt forgiven. I own the assets.

    https://www.cnbc.com/2021/06/09/new-report-50000-of-student-debt-forgiveness-is-not-regressive.html

    During my time on Wall Street, we used to employ research firms to conjure presentation data that strengthened our position; the research data always benefited the bias. These studies mean nothing.

    All I can say is that all of this domestically oriented social spending benefits only one class of people;:the asset-owning class. For those in the top 10% of wealth, the fake covid crisis has been a very good thing. For those at the very top, it means they can rule the world. It means they can rule governments and armies and societal think tanks.

    Notice that these elites use racism and racial Justice as a means to perpetuate the massive waves of social and deficit spending. Normally, these programs would never get serious discussion, because they would be uncovered for the disingenuous misallocation of resources that they are to the economy. But since the white Americans have been so demoralized and have become so degenerate, there is no sane voice left and the elites can now run slipshod over the population. They use racism to destroy the black population. I know this first hand as a property manager. I see the reality. I see the slow slide.

    Of course, none of these programs can fix cultural and societal differences and norms and that’s not the true objective of the elites anyway. You certainly can try it, but the only people who will benefit will be the wealthiest. Those the elites claimed to be magnanimously helping are those who will be the most punished ask their standards of living continue to fade into nothingness. That’s just the way it works.

    If you are a white American, get off your asses and buy some income-generating assets, because that’s the only way you will have a voice.

    My economic theories are quite unique, and over a multi-year or decade-long period, it’s very difficult to observe my theories in action. But we have just had a case study via the covid stimulus programs that perfectly demonstrated my accuracy that no other economist brought to light. If a person can’t remain objective enough to figure it out now they are doomed to fail in all walks of life.

  7. On the commodity plays, I still think we are in the 1st or 2nd inning (I know you don’t really share this view). It’s a market mechanics play for me in that these stocks are massively underowned. There are no large funds to speak of that hold these positions – but they will have to be involved (by mandate) due to their YTD performance. I can count materials equity analysts on one hand, and it seems that the big boys completely gave up on the energy names – no one even covers that sector. They will have to.

  8. Chris – I’ve been observing the institutional buying in residential RE in my area for about a year or more. It was fairly obvious – They might as well advertise they are buying. Like a market maker sitting on the bid absorbing inventory. I’m a long term investor in INVH – if you can’t beat ’em….

    1. If you can’t beat them, join them. Join the asset class. As you know, I recommend directly owning the assets as this affords holders a bundle of benefits that are exclusive to them. People who own the securities that trade only derive the income stream that is left after all of the expenses. Management and stock options can be costly to the stockholder.

      Cap rates on owner-occupied real estate in the United States are still too tasty for institutions to turn up. It’s worth their while to buy single-family homes, even with the extra management costs involved.

      Until cap rates drop to about 2%, or until bond yields rise in earnest, I still see institutional interest in this sector. We need to consider that single-family properties behave in many respects like bonds. Institutions certainly price it that way.

      Furthermore, Their proprietary economists and research analysts now observe the same phenomena I frequently discuss on my blog.

      Social spending in all forms helps their bottom lines. This is why apartment REITs and other owners of single-family properties will support fair housing laws and social spending based on racial and social justice. They’re the ones who truly benefit.

      The only difference with a bond is that a single family residence’s income stream moves up with inflation. The rental property and the rental income derived is like an inflation-protected bond.

      1. Chris – I don’t disagree that direct ownership has many benefits over REITS. I do own a handful of rentals but since I also have a full time profession, I don’t get the benefit of using all the paper losses. While the REIT holdings will earn less, personally I view that simply as a liquidity premium. Also INVH has a unique model which is why it has outperformed its peers by a mile.

        1. I don’t disagree. I think it’s in a very good sector. Professional Management does have costs though.

    2. One more thought on direct ownership of rental real estate. Regardless of circumstances in the market and the price increases that we have recently observed, there will always be bargains somewhere to be had. Though I have been painting with a broad brush recently and saying that real estate no longer offers the deals, there are always particular instances in which it benefits the buyer. If there is a good deal to be had in your neighborhood, I would definitely investigate getting involved. I normally am not interested in the rates that the REITs entertain per se, because they are willing to pay up at prices in which I would not be interested. Thus their rates of return will normally be lower than someone who gets involved directly. But getting involved directly takes work and experience. But it’s the type of experience that anyone can learn.

    3. This is just something to consider…

      A house that generates $12,000 a year in net rental income, with a 3% cap rate, is valued at $400,000, all other things being equal. The same property at a 2% cap rate is priced at $600,000. That one percentage point may not sound like a big difference, but as longer-dated bond yields continue to decline you can see how prices can go parabolic.

  9. In 2017, the price-to-income multiple for residential real estate and the United States what’s 3.26x median household income. At the end of last year was 3.99. Once all this fiscal spending domestically get settled in, this ratio should be about 5x.

    Canada’s multiples rose from 6.4x to 7.53x over the same time frame. American real estate is still cheap on a relative basis. I gave up trying to objectively value Canadian real estate years ago. Real estate values around the world trading like speculative growth stocks.

    My condos in MD were ressessed this year and the property taxes will go up about 60 to 70% over the next 3 years. Central banks and the governments have engineered another sharp increase in the prices of Real Estate help staunch the red ink on the local level.

  10. Here’s an article titled, “Big investment companies are buying houses at high prices and renting them out, squeezing would-be homeowners”

    https://www.theblaze.com/news/big-investment-companies-are-buying-houses-at-high-prices-and-renting-them-out-squeezing-would-be-home-owners#toggle-gdpr

    These Wall Street firms are willing to pay up to 50% more than the typical homeowner. I say this because the cap rates used to be 6%. These Wall Street firms are willing to pay upwards in price, so the cap rate equals 3 or 4%. This is a buy-and-hold strategy, and these private equity firms know where rents are heading; they are heading up. I know that the rent rates for my properties are already exceeding the all-time highs prior to covid. If this article is correct, which I think it is, the large homebuilders will shift their construction towards institutional ownership as the end customer.

    If interest rates continue to remain subdued or move lower, the ability of the average person to buy a home will fade further and further into nothingness. While it’s hard for me to recommend purchasing rental properties when the cap rates have dropped by 50% over the past five years, these large institutional firms and foreign Sovereign funds are willing to pay up. I certainly would not be selling any of my portfolio, although I may do like-kind exchanges. Indeed, prices continue to move higher by the week. Like several readers of my blog had mentioned, they suspect that there are large private equity firms snapping up housing stock in their areas before it even hits the market.

    1. I’d say always take profits if you have them. If you are into Bitcoin look at the privacy Crypto coins, I think there will be an uptick in that area. However I still can’t goto the store in my area and buy groceries or everyday items. And not sure how poor countries that made Bitcoin legal currency like El Salvador and Panama to expect their citizens to use it for everyday items. If you have a bank account you can see how they lowered the monthly interest to almost zero, they do not want our money, I expect them to soon charge higher fees for people having accounts. With the meme stock frenzy I was expecting Brokers to bring back higher fees for each trade. Blackberry is into the AI industry so the long term future looks decent and I don’t expect it to tank, like the other meme stocks should do.

  11. Hi Chris,
    Do you thinks it’s a good time to buy some cryptos as the prices have dropped?Trying to be contrarian here.
    Thanks

    1. I would rather buy here than before the big price slash. Some cryptos holding up better than others.

      I have noticed that cryptos do poorly over weekends. No liquidity and larger price swings.

      The governments are finally cracking down on cryptos and the meme stocks, too. SEC warning of trading irregularities and possible manipulation on GME with more to come.

      Should have been on my trade screen. I have been rehabbing three bathrooms in one of my houses.

      If the yield curve drops further, cryptos could find some footing.

    2. https://www.weforum.org/agenda/2021/06/cryptocurrencies-financial-inclusion-help-shape-it

      This was an opinion piece from the WEF. The author is supportive of cryptocurrencies and bitcoin. The common refrain is that it supposedly enables the poor and underserved, but I cannot think of a more oppresive money system for the poorer and underserved than blockchain and crypto.

      The poor in less developed countries rely on barter and other below the radar methods to put food on the table. Now these globalist thinktanks are reasoning that a track and trace system will benefit them more then those in the developed world.

      1. That would be nice…. Anything below 30k is a great opportunity. I recently bought some too early in the 30s-50s. Bought as money came available. Still own from years past though.

        1. Any other price points to buy in on on any other drops in the price of cryptos, stocks, gold, dow etc… I’m always buying too early or too late. And with selling I’m always too early or too late also. Any specific technical advice on when to buy or sell would be greatly appreciated. Thanks for all your work and help on your website

      2. Why do you say 95% are sleeping? Isn’t that a little high? Please explain….

        1. I can see why he doesn’t have any friends. Chris, you can come across as being intolerant of other people.

        2. Christianity is 31% of the world’s population. The Bible is the only place that fully analyzes our adversary, the devil. I find it impossible to understand the adversary while simultaneously rejecting Christianity. I come across a lot of people over the years who weren’t Christian, but claimed to know a lot about the devil and Lucifer. They reject Jesus and they reject the New Testament. However I noticed a non-sequitur here as they say they know so much about Satanism and such, and rely on the Bible as its source of information, yet reject it, at least in its accuracy. These people are sleeping.

          Alan watt was a very learned man when it came to the New World Order. However he never publicly spoke highly of Christianity, except when he disgussed it as a coping mechanism for its believers. He died young and broken, because he didn’t have the hope that a remnant Christian possesses.

          I think of all of the alt-media hosts who have come and gone over the decades and continually analyzed the New World Order with its satanic origins. Yet many of them rejected Christianity, even though they used the Bible to learn about the devil and Satan. Talk about logic errors. The bottom line is that people don’t like to be told what to do, and they certainly don’t want the Jesus that has been portrayed in modern media as their King. They want to rule themselves. They want the kingdom, but they don’t want God in it.

          For someone to be truly awake and not asleep regarding the New World Order they have to know not only the adversary, but they need to know our ally. And if these people are looking to other religions for answers, they might as well be sleeping.

          I come up with 5% that are not asleep, and while this low number sounds depressing and sobering, it is a straightforward determination process for me. In fact figuring things out in this world is a straightforward process for for me. I avoid making emotional decisions and then justifying them through twisted logic. I make my decisions after sound deductive reasoning.

          If 31% of the world’s population is Christian in all its forms, and 5% of the world’s population is not asleep, that makes roughly 12-13% of today’s Christians in addition to the satanists who are well-versed in the Bible and who run this world. That’s it, that’s all I would consider are not asleep. I reject the other people, because they don’t understand the adversary like a remnant Christian does. That’s just the way it is.

          The writers of Islam certainly didn’t know the Bible. The Quran was written before the Gutenberg Press was invented, and anyone with a modicum of understanding and the ability to deduce conclusions objectively can see the Quran is a piece of error-filled garbage that needs to be avoided. It even confuses Mary with Miriam, the sister of Aaron and Moses. That’s because Muhammad was illiterate and listened to the tales of the Jews and Christians at the time he walk this planet, before he descended to his rightful place.

          Any comparative religions investigator with an objective and sane mind can you use the internet and YouTube to put the Quran through the wood chipper. All those people, all those lost souls. It’s so sad.

  12. The 10-year treasury yield is hugging the 100-day moving average for the first time since the latest spike in yields began.

    Christine Lagarde of the ECB, at one time a controlled critic of quantitative easing, has pledged to remain very dovish with their bond-buying programs. Since covid was completely manufactured, it’s simple to deduce that these monetary stimulus actions are nothing but wealth consolidation schemes. In order for the next stages of the new world order to be implemented, it’s imperative that the wealth and power is Consolidated on a level unseen in human history. Only a few people can guide The Narrative over the next decade and QE is instrumental in making this a reality. It’s all done under the guise of helping the economy, and if you don’t like it, you’re a racist.

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