Monthly Archives: May 2021

We Like This SPAC

SPAC is a special-purpose acquisition company.  Many young companies have gone public via SPACs in a frenzy since 2020.  There was a bubble in SPACs for sure.  The market has corrected many of the overvalued SPACs rightfully.  There will be some SPAC stocks that may not exist in the future because their businesses are not proven.

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The Markets Into The Emptiness

The equity market spent the month of May in the void, it didn’t go up and didn’t go down either.  But underneath the surface, the market has been correcting the excesses in different sectors since January 2021.  Now the last sector left to be corrected is the re-opening stocks. The peak of the everything is priced in for a perfect re-opening. 

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A Bounce Without Enthusiasm

Last week the NASDAQ took the lead when the market bounced back from the May 19 low, but the bounce didn’t come with any enthusiasm, meaning the volume was anemic.  The 10-year treasury yield has come down, yet the NASDAQ is hardly rising accordingly.  When the mega tech reported fabulous Q1 earnings, the market shook it off.  That was the telling message for the summer.

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Can You Trust The Bounce?

The market bounced back strongly last Thursday and Friday.  Can you trust the bounce?  Yes, we believe this bounce is trustworthy and indeed a good buying opportunity.  The bullish fundamentals (monetary and fiscal polices) have not changed.  Yes, there are scary talks about inflation, but the real inflation is not here yet.

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Panic To The Upside In Disbelief

In the last few blogs, we have been warning the potential of a breakdown of 5-10% because the DOW was not able to breakout the trend line clearly for the last two weeks while the NASDAQ was in correction mode.  The bifurcated markets made us cautious and wondering what’s behind the scene to create such a confusion amid

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