Meme Stock Frenzy Is Back?
1. Who remembers that $GME frenzy? Wild swings, so much talk about stock doubling, going to the moon, diamond hands and so on.
Well, it looks like we are getting something similar with $OPEN.
This stock is going wild. It was up over 100% yesterday and then lost tons of gains.
Anyways, allocate wisely. Just know that frenzies and manias end in spectacular way. The last thing you want to do is be there when the trade turns against you, and you keep hoping that it will make a comeback.
Economic Data
2. Relatively boring day today when it comes to economic data.
Tomorrow, Canadian new home prices, and U.S. existing home sales.
Thursday will be a busy data day.
Energy
3. Oil: as I have said before too, you have to be really careful if you are hoping for some massive upside. Even actual threats of blocking of Strait of Hormuz weren’t able to take oil to $80. Only some major event takes oil higher at this point.
Overall, oil prices looking weak. $65 is a big level to watch. If that breaks, don’t be shocked to see a move to high $50s very quickly.
Now, when it comes to oil stocks, and if one needs exposure to oil; focus on quality vs quantity. Also, might find some good quality dividend payers here 😉
Canadian Problem No One Talking About…
4. There’s one thing no one is talking about these days and I find it very odd…
You see, Canadians built up a lot of equity in their homes over years as there was literally a housing bubble. Now, things are starting to deflate a bit. This is surely impacting wealth. It is not uncommon to see $50-$100k equity wiped out from 2021 peaks… if not more.
Canadian were super rich on paper, but now the paper richness is going away.
Does this not affect how they spend and do things? I think it does. This is going to leave some serious wounds, and this “wealth erosion,” will keep a lot of people pessimistic for a while.
Too Much Good News In Crypto…
5. Over the past few weeks, I have been noticing one thing over and over again; there is a lot of good news in the crypto world.
I get it. There are reasons for it too.
But, what’s interesting to me is that there isn’t pushback. No one is really saying “it’s a scam,” or “Ponzi scheme,” etc. Generally, there’s always someone saying something along those lines.
I think crypto world, and especially bitcoin maybe getting set for another move higher. This time to $127-$135k, but lots of caution is required. To much good news is generally peak-ish behavior.
Just so you know, I am not calling a top (impossible to do so). Just speaking my mind about too much good news. Its worrying me a little bit.