BaylorSpineGuy said:

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Can you do some EW for us on RGS? If u posted earlier, sorry I never saw….

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Very long corrective wave down dating back to the Christmas high of 2004. The first big move you see that bottoms at $8.21 in Nov of 2008 is a pretty clean 5 waves down forming "a" of the correction. At the time, I probably would have assumed that was the bottom.

It then spends 11 years correcting that entire 5-wave move from the ATH by 38% back upward. Notice the action in those years.. nothing impulsive. All overlapping and corrective in nature. Any big gains were only temporary and were usually followed by steep drops. That's what you get in a long term bear market with a stock or index. But it was indeed a "b" wave and the fibs are how we know.

Since that top in October of 2019 at $23.27, it entered into a very impulsive move downward to new lows. It does get diagonal in nature which is common for "c" waves. We call them ending diagonals.

The bottom from a couple weeks ago touched just shy of the 200% extension level downward from the Wave 1 low and Wave 2 high of this Wave "c". It does look to have permanently bottomed at $2.64. A bottom of a 20-year trend. WOW.

Edit: Nothing is ever 100%. I am not guaranteeing that it won't go lower, just showing that the probabilities and fibs point to it not.



Where does it go from here?

UP!

Kidding aside.. if you want to ride for the long haul, you could jump in with shares here. But who knows how long it takes and how quick it starts to rise. The next move could be a wave i within a wave (i) within a Wave 1 within a Wave (1). Lots and lots of build up before anything significant. I will put it on radar and alert if I see a nice setup like I've been tracking with PROG, VEON, and DNN. It's in that realm of stock right now.

Kindly appreciated! I bought in around 3.84 six-eight weeks ago when volume started running. It recently formed a goal post formation, so I'm hoping it'll start running. It did pump nearly 20% in one day late last week.

Hoping it gets meme'd and can run crazy. Heavily shorted stock with low float.

Woke up to take piss and saw CLOV about to go below 6. I'm going back to sleep. Mothereffer

CLOV issued 52M shares at $5.75 to raise $300M.

F these people. They had $600M cash before this and now $900M. They are either going bust and know it or fund something else

gigemJTH12 said:

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Why did $WWR spike so much AH just to come right back down?

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Because it's $WWR

gigemJTH12 said:

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Why did $WWR spike so much AH just to come right back down?

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Sale (really an MOU, nothing final) was announced AH so you get the usual stuff there. No terms announced either, they might be giving if it all away for a $1 (doubt it but you get the point). Today will tell the story about how much the insiders know/value the sale.

I'm more curious about this 100k candle 5 minutes before the bell, maybe someone got wind early.

That was just OA rebalancing.

Dan Scott said:

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CLOV issued 52M shares at $5.75 to raise $300M.

F these people. They had $600M cash before this and now $900M. They are either going bust and know it or fund something else

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This really doesn't make sense at all, but they sure screwed the shareholders with it.

Who do most business-related press releases come PM or AH? Why can't someone do an earnings report at 12 noon?!?

Seems like retail gets the shaft with such a move. Has there ever been an attempt to legislate that such things are provided during regular business hours?

Thursday Macros....

Equities Near Overnight Highs...Treasuries Retreat... Has Inflation Peaked

Yesterday's 20 year auction was not good, but it was not a disaster like the last 30 year, so after a mild sell off, the treasury market caught a bid... Overnight 10 years reached 1.57 at 3 am, but by 5 am, they were back to just under 1.60, where they are now... Equities did the same, hitting a low of 4684 early in the session and grinding higher to 4700, where we are now... GS remains bullish for a trade.

JPM is the latest back to throw in the towel , bring rate hikes for the Fed into September of 2022... They had been at waiting until 2023.. They now expect two in 2022, with the next one in December 2022... Here is what they said

"That will prompt the Fed's policy-setting Open Market Committee to raise its benchmark rate from near zero in September with a further hike in December and one every subsequent quarter, the economists said. They predicted the increases will stop once the inflation-adjusted rate is back at zero."

read that last line closely, once the inflation adjusted rate is back to zero... That is a lot of rate hikes given where inflation is now... DB was out calling for 2 hikes next year and 3 each the following two years... If they are correct we could be looking at significantly higher short rates...

Inflation... While we have been pounding the table on inflation since last year, now everyone is talking about it... When the media gets as focused as it is now, that probably means we are close or at a peak, at least temporarily... Oil is lower and looks to be breaking down as Biden and others are trying to release strategic stock piles... But demand remains strong.. Coal futures in China have fallen 55% over the past month and WTI has fallen to 6 week lows... Baltic Dry is down recently and auto chip shortages seem to be coming to an end... Is this the end of the supply chain and inflation issues ? Not even close, just a temporary lull...

Fed... WILL IT BE POWELL OR BRAINARD... We have been asked that question by clients and fixed income friends constantly the last few weeks... We had 10 people ask yesterday.... Here is how we see it... Given that Biden's team has waited this long, we think it is leaning towards Brainard... The 4 day window earlier in the week that Biden talked about takes us into the weekend... So that indicates a surprise... Who do we prefer?..Powell... Not so much that the top line management towards rates will be that different, but more so the brain drain at the Fed will accelerate... You already have one vacant seat, and Quarles and Clarida will be gone, so now that is three seats.. If Powell is not reappointed he will resign... So now that is 4... And even worse is that Yellen came out a few months ago publicly backing Powell, so it tells you if Powell is not reappointed, her vote is not really being given the weight it should be... So Yellen would probably exit before the mid terms... So we ask, who is really behind the decision making when it comes to the Treasury and the Fed?... And that uncertainty could be a problem for markets... 5 Fed speakers today.

Next week will be a compact week for treasuries and probably lite for corporate issuance... Two years and 5 years will be Monday... 7 years and 2 year floaters Tuesday.... There is no early official close on Wednesday, but unofficially trading will slow down in the afternoon... And Friday will be a half day... So expect some back up in rates next week to set up for the auctions... Traders have been good lately getting the treasury to pay their concession.

Corporates 4 deals led by CP came to market yesterday bringing the weekly total to over 50 billion... Canadian Pacific deal was over 5 times oversubscribed. In junk three companies issued over 3.3 billion...demand remains strong...

Contrarian nature of trading has been developed over many years...we see that CalPers Board has approved the funds to take on leverage and move re-allocate to alternative investments... They refuse to alter their 6.8% hurdle . With rates so low for so long, increases in risk is the only way to get the necessary returns... Taking risk is not free... And will be troublesome at some point... So when we see one of the biggest pension funds resort to leverage (we are ok with alternative investments) we start to get worried that a reversal is coming...

ELOX just ugly

And CLOV just took pity on it and gave it some company so it wouldn't feel lonely.

Not sure why y'all insist on trading these small cap companies.

RIP to whoever holds SAVA, CLOV and ELOX

CLOV and ELOX

About time to cut bait