Bloodbath for Investors But a Heaven for Traders
Do note that Ardi and I will be going live on Tuesday, Wednesday, and Thursday to review the state of the market. Please join us in our YouTube channel. You can subscribe here. Our in-house psychologist, Dr. Kenneth Reid, is offering a free 1:1 mentorship coaching session for all new Elite annual members. You can purchase an Elite annual membership at a 50% discount here. I encourage you to consider upgrading your account.
Today’s Global News and Financial Recap
On Friday, the inflation numbers (CPI) came in hotter than expected, and that worried everyone, from investors to policy makers to central bankers. Another red-hot inflation reading means that the Chair of the US Federal Reserve, Jerome Powell, and his colleagues are under even greater pressure to tackle soaring prices when they meet this week. Some traders are betting on a 0.75% interest rate hike now instead of a 0.5% one. The inflation reading jumped to a fresh 40-year high in May. Headline CPI hit new highs last month but the Core CPI moderated slightly this spring.
The market mania of 2022 continued this morning. Bitcoin sank more than 10% to $23,000, while most other tokens suffered even deeper losses. The selloff intensified as lender Celsius froze withdrawals, swaps, and transfers, exacerbating uncertainty around the sustainability of crypto products. Binance froze Bitcoin withdrawals due to concerns regarding liquidity. It seems the Federal Reserve needs to come in and bail out crypto. The crypto bros who poured money into JPEGs of monkeys and tokens named after dogs are now bleeding. The financial tightening is in full force, and inflation needs to cool down. As I am writing this newsletter, the market is down well over 3% in all indexes. I myself moved all of my capital to SPY, and plan to stay away from any other leveraged product or risky asset. It is a time to be conservative.
The White House believes inflation is the “Putin Price Hike” or “Putinflation“, but is that simply excuse-making? It’s true that inflation was very high prior to the invasion of Ukraine, and thus had nothing to do with the war. But it also seems very true that the war has significantly contributed to some of the most prominent drivers of inflation (and in particular energy). Who is responsible for this inflation? Everyone is asking this question.
At Bear Bull Traders…
Tonight, for Monday Onboarding, please join our team of experienced mentors – Carlos, Mike, and Kyle – at 7pm ET. They will walk you through the tools needed to start your trading career and introduce you to both our philosophy of education and our suggested path to success, with the end goal being that you will be able to build your own winning TradeBook for the stock market. All members, and especially our new members, are most welcome – and very much encouraged – to join us tonight and every Monday night.
For Monday Technology, all Elite members are invited to join Kyle at 8pm ET for an extensive review of DAS Trader Pro, ranging from its basic setup to more complex and advanced programming matters, including new update features. Make sure you bring your questions as ample time will be set aside for the specific platform issues that you and other members are struggling with.
For Tuesday Strategy, all Elite members are encouraged to attend Brian and Peter’s webinar that commences at 8pm ET. While trading the Open can be risky and challenging, the Rising Devil and Fallen Angel strategies can help you bring structure and profitability to your trades made at the Open. In this webinar, Peter and Brian will cover how to identify, execute, and manage these types of trades. Detailed technical information and “live” examples will be provided.
At Peak Capital Trading…
Tonight, at 7pm ET, our boot camp participants are invited to attend a webinar led by Peter entitled: How to Create the Perfect SMART Trade Entry. On Tuesday, at 11am ET, Mike will be presenting on: Developing Your Trading Framework to Select the Proper Stocks for Trading. On Wednesday, at 11am ET, Aiman and Dimah will be discussing the ins and outs of determining when to add into a position.
You may think that the turmoil in the market is enough to worry about, but I read some other news that made me worry about life!
A software engineer at Google, Blake Lemoine, announced that he was put on leave by the company after raising the alarm that its artificial intelligence is sentient – meaning that it has consciousness. Meaning that it has a soul. Lemoine’s claims stem from his interactions with Google’s Language Model for Dialogue Applications (LaMDA), the company’s artificially intelligent chatbot generator. Lemoine, an ordained mystic Christian priest who works for Google’s Responsible AI unit, started talking to LaMDA last fall, asking it questions about rights, personhood, and even more profound topics. In an interview with The Washington Post, he said, “If I didn’t know exactly what it was, which is this computer program we built recently, I’d think it was a 7-year-old, 8-year-old kid that happens to know physics.”
Google argues against this and says that the engineer is allowing a clever robot to mess with his emotions, kind of like Joaquin Phoenix’s character in Her. A Google spokesperson said that its team of ethicists and technologists had reviewed Lemoine’s allegations and found “… no evidence that LaMDA was sentient (and lots of evidence against it).” In LaMDA’s conversations, Google sees what’s known as large language model technology, which synthesizes trillions of words floating around the internet and does its best to mimic human language. And most AI experts have dismissed the idea that computers could soon become conscious, according to The NYT.
Will we soon be going to the movie Her in real life?
To your success,
PS: If you have not already, I urge you to try out our free web-based trading simulator
at stocktradingsimulator.com. It’s conveniently available 24/7, whenever you have time
to practice honing your trading skills.
PS2: Although it is still in a beta version, you can visit tradingterminal.com to do research on stocks you’re interested in. While we have not perfected it completely yet, it is a great place to not only research stocks, but also crypto and forex, as well as catch up on the latest news. There’s even an earnings calendar to assist you in making trading decisions.