Who’s More Scared Right Now?, Fed Gibberish, Minor GSAT Trade Alert, And Much More
Here’s the transcript from today’s live Q&A chat.
Q. Who’s more scared right now? Bulls or bears?
A. Let’s put this question at the top of the chat transcript when we send it out. Let us know who you think is more scared right now by sending us an email at support@tradingwithcody.com or send us a Tweet @TradingWithCody. I’d say bulls are more scared right now.
Q. What does all the Fed gibberish mean to you? Pause for now but 1 hike later in the year. Not sure what to make of it all anymore, yet the market is so hyper Fed-focused. In the real world, I am hearing about people struggling to find work, real estate slowing, a few layoffs, etc. Yet, in LA, restaurants are full even with the above and also the various entertainment strikes. It’s all just confusing to me. I don’t see a good economy so I’m not sure where the Fed is coming from.
A. The fed gibberish is just gibberish as always. The whole monthly obsession with “Fed Day” and the endless discussions of “Do you think the Fed will cut? Because I think the Fed might cut. But the Fed might raise too. I think the Fed might raise too, don’t you?” are not helpful to traders or investors. I’ve been saying for more than a year now that I think the Fed will likely raise rates to the 5-6% range and leave them there for at least a year or two. The Fed gibberish today basically said that they’re seeing it that way too now. If/when the Fed does start cutting rates again, I’ll probably want to be flat-to-short at that point because the Fed probably won’t and shouldn’t cut unless there’s a major economic/financial crisis.
Q. What are your top positions right now? What about your top 5 buys?
A. Largest positions in the hedge fund in alphabetical order are: DALN, INTC, HOOD, RIVN, ROK, TSLA, UBER. My favorite 5 buys right now are probably, also in alphabetical order: GSAT, HOOD, NET, NFLX, TSLA.
Q. Can you please provide your thoughts on the Intel (INTC) CEO public comments yesterday? I know you haven’t been crazy about his previous public remarks.
A. He said some exciting stuff and he said some stuff that I was like, “Please don’t hype, Pat!” There are a lot of moving pieces at Intel and if they can catch up and pass AMD in CPUs, if they can catch up and pass TSM in chip size, if they can provide an AI chip that actually helps create new and useful applications for people on their computer/tablet — Intel (INTC) could be off to the races. That’s quite a few “can”s in there though and I’d like to see the company deliver on those paths in addition to talking about them.
Q. I read the update on Rocket Lab (RKLB), but can we get a renewed analysis on this name?
A. Yes, great idea. Bryce and I will write up a new analysis on Rocket Lab in the coming weeks.
Q. Are we concerned with our Robinhood Markets (HOOD) position after Apple (AAPL) and X (fka Twitter) announced plans to offer trading?
A. Apple’s not launching a trading platform but they did discuss the idea with Goldman a couple years ago near the top of the Great Bubble-Blowing Bull Market. Twitter might end up offering stock trading at some point and could be a true competitor to banks and to trading platforms like Robinhood in the coming years. I’m not ready to bail on Robinhood for fear of would-be competitors just yet though.
Q. Will Cloudflare (NET) be a “big” position for your hedge fund?
A. I plan to make it about medium-sized for the hedge fund but as usual, I’ll build it up slowly over the next few weeks and even months, trying to nibble more when the stock sells off.
Q. Average down or sell out of the Netflix (NFLX) calls?
A. We nibbled a few NFLX calls today but not making it a big position or anything right now.
Q. Thoughts on Seagate Technology Holdings PLC (STX)?
A. Good company but memory chips are pure commodities and they are dependent upon the industry pricing/gluts/shortages in order to make their money and I’ve learned over the years how hard it can be to try to game commodity cycles with a company that can run into its own problems even when the industry is in money-making mode.
Q. Thoughts on Globalstar, Inc. (GSAT) now that it’s slowly coming back to Earth (pun intended)?
A. We’ve been doing some work on GSAT and like what we’ve found so far. The new CEO, who used to be the CEO of Qualcomm (QCOM) and is the son of the founder of Qualcomm, is a good executive and could help get this company going in the right direction. In fact, we’ve nibbled a little bit of this name here today under $1.30 but it’s a tiny position and we’re still digging in on it.
Q. Can you please provide an update on the SKTLs Space Cryptocurrency?
A. The SKTLs community awarded over $100,000 worth of the tokens to several space companies that are tackling the space debris problem. The token doesn’t trade much (yet) but it remains one of maybe a handful of crypto tokens that has NO founder tokens or other exchange of value when it came out. I still own all the tokens I’ve bought. We have a YouTube meeting talking about crypto, space, space stocks, etc. each week at 4 pm ET on our YouTube channel.
Q. On a scale of 1-10, how excited are you to hop on the SKTLs call in 2 minutes?
A. 8/10. I enjoy discussing crypto and space most any time, but there is a little bit of added pressure that we do it in public on YouTube when we do these calls, of course.
That’s it for now folks. I leave you all with a shot my daughter Lyncoln and I took of the stars from underneath a tree on our farm last night. And a shot of our OTHER new baby miniature Zebu bull that was just born last night.
