Uh Oh, Crypto…

Tale of the Tape

Good evening, folks. Did you know that today is the 21st day of the 21st year of the 21st century. Well, now you know. 😉 🧠

The market was mixed. The tech-heavy Nasdaq led while the Russell 2000 lagged. 

Tech was the strongest sector. $XLK cruised 1.3% and closed at another all-time high. Financials fell 1% and energy tumbled 3.4%. President Biden killed the Keystone XL Pipeline. Perhaps that’s why energy felt the pressure. 🤷‍♂️

The cryptos cracked down to levels not seen in roughly 10 days. 🤣 See more below.

America’s Apple advanced 3.67% and ticked a new all-time high.

Netflix chilled after yesterday’s stellar performance. Are you still watching?? 

Tal Education Group ticked a new all-time high after reporting earnings early this morning. $TAL closed up 15% but was up as much as 25%.

$FUTU flew 9.95%. The stock is up 116% already this year.

Here are the closing prints: 

S&P 5003,853+0.03%
Russell 20002,141-0.89%
Dow Jones31,176+0.00%

Uh Oh, Crypto… 

Crypto wasn’t quiet today. Actually, far from it. 

Bitcoin broke down to levels not seen in at least 10 days. $BTC.X dropped ~13% and ticked a low of 30,011. Where will Bitcoin bounce next? Place your bets… 

Here’s the daily chart:

Ethereum evaporated after ticking an all-time high only two days ago. $ETH.X tumbled from 1390 to 1081 but the crypto is still up ~55% in 2021.

Here’s the daily chart:

Earnings Roundup


IBM continued its slide into Q4 2020 as it saw yet another drop in revenue that was bigger than analysts expected. On the bright side, its Red Hat division revenue was up 18% YoY, showing a bright future.

EPS: $2.07 vs $1.79 Est.
Revenue: $20.37B ▼ 6% YoY

$INTCIntel Corporation 

Intel earnings leaked slightly before the market closed, after a slide that was meant for the after-hours presentation was posted by accident. Whoops 😬

Bob Swan’s swan song (his last quarter as CEO) had a strong performance. Despite Intel’s struggles this past year, they managed to pull a strong Q4 that was driven by “unusually strong” PC sales that were up 33% over the holidays.

EPS: $1.52 vs $1.10 Est.
Revenue: $20B ▼ 1.1% YoY

Back in SPAC

In a very characteristically Russian nesting doll-type situation, Morgan Creek Capital Management and fintech company Exos Financial are co-launching the third SPAC ETF on the market— the stock will begin trading under the ticker $SPXZ next Tuesday.

Morgan Creek CEO Mark Yukso is very bull-ish on SPACs. He’s excited for the ETF, and said:

The SPAC IPO has inherent advantages over the traditional IPO process for high-growth companies.

He also said the ETF will be actively managed to deal with wide gaps between successful and struggling mergers in SPACs.

We’re just waiting for the day we can SPAC an ETF that holds SPACs. 😅

We’re Back 🌎 

In one of his first moves as President, Joe Biden signed an executive order returning the United States to the Paris Climate Agreement. 🌎 ♻️

What’s the Paris Climate Agreement? In short, it’s a pact adopted by the 2015 UN climate conference that sets global guidelines to prevent temperatures from elevating to dangerous levels. 

Under Donald Trump, the US pulled out of the pact. But in Biden’s inaugural address, he said “the climate in crisis” would become a top priority. Here’s the NY Times with more. 

And here’s a picture of the Arc de Triomphe in 2016 (because it looks cool) when Paris celebrated its first day in the pact:

Following the news, iShares Global Clean Energy ETF $ICLN increased 4.4%. Here’s the weekly chart:

Locked Out

Twitter suspended the Chinese Embassy’s account after its tweet about Muslim Uighurs. Twitter backed the suspension with its anti-dehumanization policy: 

 [Twitter] prohibits the dehumanization of a group of people based on their religion, caste, age, disability, serious disease, national origin, race, or ethnicity. 

Twitter removed the tweet from the Chinese Embassy which called Uigher women “emancipated,” claiming they were no longer “baby-making machines.”

The suspension followed the Trump administration’s accusation of China’s genocide against Muslim Uighurs. While the Biden administration has also supported these claims, it declined to comment. 

Meanwhile, the Chinese Foreign Ministry is confused by the move. Ministry Spokeswoman Hua Chunying responded: 

We hope they won’t apply double standards on this issue. We hope they can discern what is correct and truthful from disinformation on this matter.

Here’s Reuters with the full story.

Earnings This Week

Be sure to know when your stocks report earnings. Here’s the earnings calendar

Links That Don’t Suck

*📈 Here’s a better way to buy IPO stocks using chart patterns (and why buying on day one is for rookies).

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