Tale of the Tape
Good evening, y’all! Happy freakin’ Friday! Congrats on surviving another week on Wall Street. 😅 🍾
The market of stocks continued to march higher. Every major index inched to positive territory.
The S&P 500 and Dow dashed to new all-time highs while the Nasdaq Composite closed above 14,050 for the first time since February 12. See the weekly candles below. 🕯
Basic materials bopped up 1.14% as $XLB closed at a new all-time high over the last 3 days. Utilities, consumer discretionary, healthcare, and financials all flew ~0.75%. Tech and communications closed flat while energy stumbled 0.8%.
The crypto craze reigns! 👑 Bitcoin and Ethereum both took a breather after a beastly week. Meanwhile, Doge is back on its bull. 😉 The crypto cruised more than 100% since yesterday— it’s up >300% this week. What a freak!! 🚀 🤣
Wells Fargo flew 4% as the stock settled at its highest price since February 26, 2020. $WFC waltzed 10.4% after Wednesday’s earnings release. Could the stock hit a wall?? Time will tell… here’s its incomplete monthly chart:
Social stocks struggled. $PINS plopped 9.7%, $SNAP snapped 4.1%, and $TWTR tumbled 2.22%.
Sherwin-Williams surged 3.8% as $SHW broke out to blue skies. ✨
Here are the closing prints:
Weekly Candles 🕯
What. A. Week. Check out these weekly candlesticks:
The Nasdaq Composite nestled up 1.09% for the week as the major index closed just below its February all-time high. Will it break out to blue skies? ☀️
The Russell 2000 rallied 0.86% as the small-caps consolidated. Will the Russell resolve to new highs?
Utilities lept 3.69% as $XLU closed at its highest price since early March 2020.
Real estate rallied 2.63%. $XLRE is within $0.60 of its February 2020 all-time high.
Bitcoin bopped 3% and cracked through 64k for the first time ever. 👀
Ethereum surged 14% as it powered through 2,500. ⚡
Doge was the talk of the town. The crypto went crazy as it trended on Stocktwits almost every day. $DOGE.X dashed a breezy 369% this week. 🤯
The SEC’s SPAC Attack
Nothing lasts forever. 🤷♂️ The SEC could start cracking down on SPACs.
What’s a SPAC, again? It’s a Special Purpose Acquisition Company, or a blank-check company that exists solely to merge with a business to take it public. SPACs have already raised $100B this year, but the SEC isn’t stoked. Regulators issued a warning that could require SPACs to disclose more detailed financial results.
Matt Simpson, a Wealthspring Capital Managing Partner and SPAC investor, said “The SEC effectively has now come in and stopped the party.”
With over 430 private firms currently seeking public debuts via SPAC, regulators worry investors could get crushed— the SEC also wants to know more about SPACs’ warrant issuance.
Will the SEC launch a SPAC attack? 💣 Here’s the WSJ with more.
Apple Toots Its Own Horn
When you’re killing the game, sometimes you have to let everybody know. 😁 🎺
Today, Apple sent a letter to all artists on its platform disclosing a new ‘penny per stream’ payout structure. That doesn’t sound like much, but it’s almost double what Spotify (the world’s largest music streaming service) pays.
Increased compensation for artists is especially important now— the music industry still feels pressure from lacking live performances. Artists are calling for higher streaming payouts, as they’ve historically been comically low. 👎
Apple acknowledged a fight for fairness in its letter to artists:
As the discussion about streaming royalties continues, we believe it is important to share our values. We believe in paying every creator the same rate, that a play has a value, and that creators should never have to pay for featuring.
Streaming service preferences aside, you have to love supporting your favorite artists. ❤️
Cuba Without a Castro?
Raul Castro announced today that he will be retiring from his role as the head of Cuba’s Communist Party.
The leader said he’s willing to relinquish power to a younger generation “full of passion and anti-imperialist spirit.” Castro also shared his sense of having “fulfilled his mission [with confidence] in the future of the fatherland.”
Raul and Fidel Castro have been in power since the Cuban Revolution in 1959. Cuba hasn’t confirmed its next leader, but President Miguel Díaz-Canel is a likely candidate.
As Raul stepped down from power, he proclaimed:
I believe fervently in the strength and exemplary nature and comprehension of my compatriots, and as long as I live, I will be ready with my foot in the stirrups to defend the fatherland, the revolution and socialism.
Links That Don’t Suck
💦 Emerging Hemp Company Completes Acquisition of High Alkaline Water for Increased Retail Footprint*
🚨 Lightning eMotors and REV to Produce Electric Ambulances
🏀 Teammates in Brooklyn, Rivals in M.L.S.
🎙️ My Conversation with Jim O’Shaugnessy on His Infinite Loops Podcast
🏎️ The New Mercedes Is a Mix of Tesla and Ferrari
💡 AVC: Leadership Matters