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Good Morning Everyone!
Remember, Wall Street makes money from action. You and I and Warren Buffett make money from inaction.
Quiet day as China, Hong Kong and Taiwan closed
In April 2022, Nasdaq had its worst month since October 2008
Fed hawkish on inflation
Consumer (rent, fuel, food)
Year to date in Canadian dollars
S&P 500 -11.6%
10yr 2.9% near 1 year highs
VIX above 35 has been a good short-term trading buy signal
Has worked the last 3 occasions since December
Crude 100 -4%
Crude lower on China concerns
China’s non-manufacturing PMI missed, 41.9 vs. 46
China’s manufacturing PMI in line, 47.4 vs. 47.3
OPEC+ meets this week on May 5th
Buffett 91 years old
Greg Abel 59 years old, leads non-insurance businesses (3/4 of total company)
Ajit Jain 70 years old, leads insurance businesses
EPS $3.18 beat street $2.80 (Energy and Utilities strong)
Bought back $41 billion in stock in the first quarter
Insurance GEICO – 3rd consecutive underwriting loss from auto market
Either GEICO or Progressive is expected to overtake State Farm as largest auto insurer
Railroad (BNSF) – inline, revenue growth +11% (higher fuel surcharges)
Utilities & Energy – inline/ PacifiCorp, Natural gas pipelines, Real Estate brokerage
Manufacturing – strong/PCC, Lubrizol, Marmon, IMC, Building & Consumer Products
Service – TTI electronic components, NetJets, FlightSafety, McLane
Spirit Airlines rejected a $3.6 billion cash takeover offer
Spirit will stick with plans to merge with Frontier
Bitcoin had its worth month of the year in April:
But May has historically been a good month (4th best):
Correlation to the Nasdaq has been strong, but it’s starting to diverge:
Bitcoin and Ethereum are growing up, volatility has been trending down for 6+ months:
MEME OF THE DAY
Cathie Wood bought more than $20M worth of Teladoc ($TDOC) as it tanked last week. Here are the final 100 trades going into the weekend:
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