Market On Open, Friday 15 August
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Even Boomer Stocks Just Won’t Let Go
by Alex King, CEO, Cestrian Capital Research, Inc
The big news in the market yesterday - was it Nvidia? Was it Coinbase? Was it Figma? Was it some other hot new name about to take the world by storm?
It was not.
The big news was United Health, $UNH, being reported as a Buffett holding in a 13F (meaning it was old news), and Intel, $INTC, being floated as a possible recipient of a federal bailout aka “the Administration taking a stake”.
I don’t know much about United Health but I do know a little about Intel - we have covered the stock for many years and charted its decline from being the second most hated chip stock after AMD to becoming the first most hated chip stock.
Lately there have been some signs of life in the volume x price chart. The “Accumulate Zone” below represents the big spike in volume you see in the price range $17-24/share. These kinds of sideways rangebound patterns at the lows aren’t always a sign of Big Money building stakes, but they often are.
Let's see if INTC breaks out. If it does then I think it will be in anticipation of some kind of corporate event - a sale, breakup, something like that - because the beast as a whole has proven too difficult for successive CEOs to turn around.
(For disclosure, I am long $INTC and have been for some time, in anticipation of a recovery led by the re-shoring of semiconductor manufacturing policy adopted by both the current and prior Administrations).
You Are Being Enveloped By Ether.
You Just Don’t Know It Yet.
This is your daily reminder to not sleep on the tokenization of the financial system. It is real, it is happening, and it is unstoppable. It is a sweeping change of lower-regulation asset management. It will change how money is made and lost.
If you’re not an Inner Circle member, and you want to use our work to help you win in the new world, can I suggest you either:
- Join Inner Circle to get our absolute best work all in one place, to join our wonderful community of investors and traders in our chat and alerts system, and to get access to our weekly live webinar - in short, to join the team, or:
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Now let’s get to work. Here’s our daily subscriber-only take on the US equity indices, volatility, bonds, oil, crypto, and key sector moves.