The Inflation Report

Rivian, Inflation, Metaverse and More

RIVIAN

Heck of a debut for Rivian. It might surprise some people that it ripped into the weekend. But ya know, this is why you IPO. You have to trust the process. Wall Street even managed to get a post offering rip out of Robinhood. In the middle of the summer. Think about it. Robinhood’s own users won’t even buy the stock.

I haven’t seen a physical Rivian, but would like to think people have seen more than a demo video. Really hope investors didn’t fall for that one again. That would be a bit embarrassing.

Apparently they’ve sold vehicles to employees, but not the public, which seems odd. Insiders say ‘trust us, it’s a great product, the CEO is a genius’. Again, not getting great vibes from that. In the year of our lord 2021, if somebody suggests you should trust them - you can’t trust them. All in all this sounds like a mash up of various investing disasters of the last 7 years. On the other hand, YOLO.

INFLATION

The hive mind decided to price in an abrupt end to taper Wednesday. We saw it in TNX and the Dollar Index. Inflation is so hot, they HAVE TO speed up the taper! They HAVE TO make up for that mistake and raise rates!

No, they don’t. We’ve seen this play out again and again over the last few months. But markets are more unstable these days, so we get what we got Wednesday - a mini panic until the market closed.

But the Inflation readings are getting higher and catching more attention all the time. It’s problematic. Everyone in the know knows inflation is at least somewhat psychological. Which, that’s not great given the consumer is flush and we’re collectively going insane in a myriad of ways. Actually, it sounds like the perfect recipe.

METAVERSE

How do you doubt the metaverse? Sentiment surveys suggest people would rather just be plugged into the matrix at this point. Everyone else wants to use metaverse to do big things like build the future and pump their stock. YOU CAN’T LOSE (disclaimer: you can lose everything)

Here’s Metaverse posterchild Unity breaking to new highs on volume.

MORE CHARTS

Friends don’t let friends go Gold over Silver. Not here. Not now.

But that’s because a bull market is re-emerging in precious metals. Gold miners look great longer term. All you had to do was tune out a little hysteria and that long term zone around 30 held up.

In fact Gold Miners, at the bottom of a 6 year range, might be a better near term bet than the S&P 500.

The charging stocks have been hot. Sure they’re stretched, but big picture these look earlier than late.

The software setups and breakouts keep coming. Here’s Elastic.

Homebuilders are re-emerging. Lennar leading the way.

Trade ‘em well