/weekend Nov 14, 2021
Leet's look at NASD 100 as tech has been dominant.
This 30 minute chart suggests a wave one down and now wave two up are complete or close to it. Interesting to see how the market opens Monday. I see support for Biden has dwindled to the point that Dems are already considering Harris or Pete B. The WSJ and Brett Stephens at NY Tiimes label this a repeat of the Carter administration.
Consumer confidence fell unexpectedly in the first two weeks of August to its lowest level in six years as households grew increasingly worried about the economy following a sustained surge in coronavirus cases this summer.
The Conference Board said Tuesday that its consumer confidence index, which measures how optimistic consumers feel about the economic outlook, dropped to a reading of 84.8 this month, down from 91.7 in July.
The German economy is slowing. US labor Market is pressed to fill open jobs. South America has embraced socialism, again.All of this should be a warning that mood is about to turn negative. But there is still plenty of positive mood as evidence by Rivian.
See our column posted Friday, here is an excerpt.
Last week we noted the dominance of Tesla trading at a 347 price earnings ratio and comprising half of all options activity. Move over Mr. Musk there is an even bigger bet being placed. Rivian is a wannabe maker of electric pick-up trucks. It is the biggest IPO since 2014. It has sold 156 vehicles mostly to its own employees. Third quarter revenue is one million dollars. But its IPO raised $12 billion. It has a market cap of $100 billion + (depending on the time you looked at the tape). This surpasses GM at $89 billion. But GM had $122 B in revenue by selling 6.8 million vehicles last year. How can an upstart with near no sales be worth more than GM? Apparently investors see a government sponsored car company that Team Biden won’t allow to fail. That was not the case with Obama’s favorite- Solyndra. GM CEO Mary Barra is puzzled at the valuation, yeah me too.
WTIC has finished five waves up on the weekly chart and is now consolidated also in our Friday report.
I simply drew in the five waves as blue lines.
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