Your Weekly Investing Preview is here... From BTC to ROKU, Here Are 5 Must-Know Trends Shaping the Market for Investors This Week By Andy Swan Welcome again to Derby City Daily: The free new service from LikeFolio, the team that âcracked the codeâ on social media-driven investing. We can show you how consumer posts today turn into stock-and-option profits tomorrow â and weâll do that here seven times a week. Donât miss [this personal welcome letter from the team]( which includes three of our favorite stock picks for 2023.
Well folks â get ready for another action-packed week in the stock market, where weâre already seeing big moves being made with Bitcoin (BTC), Apple (AAPL), Tesla (TSLA), and more. In this Weekly Investing Preview, weâre sharing the top five takeaways you need to know to make the most of investing this week... No. 1: CFTC Comes for Crypto with Impeccable Timing
Just as consumers lose faith in banking systems around the world and fuel demand for decentralized solutions and cryptocurrency, the U.S. Commodity Futures Trading Commission (CFTC) announces itâs suing Binance, the worldâs largest crypto exchange, along with CEO Changpeng (âCZâ) Zhao... Bitcoin is now getting slammed, sinking below $27,000 earlier today:
The lawsuit claims that Binance violated regulatory requirements by soliciting U.S. investors. For context, regulations prevent American crypto investors from dealing with Binance, forcing the exchange to form a separate U.S. entity, Binance.US. That suit comes directly on the heels of the U.S. Securities and Exchange Commission (SEC) going after U.S.-based Coinbase (COIN) for supposed regulatory violations. The U.S. government has a problem with crypto, thatâs for sure. And its timing is impeccable: Bitcoin was up over 60% year to date while COIN shares had gained over 80%. But weâve seen these types of actions before â and Bitcoin, along with the rest of the crypto space, has proved resilient. For investors who donât shy away from risk, if anything, this could be a great short-term opportunity to pick up BTC at lower prices. [Because we believe this asset presents incredible profit potential in the long run](. No. 2: Whether Itâs Interest Rates or Stock Valuations, Something's Gotta Give
âRisk freeâ interest rates drive stock price valuation: The higher return that people can get from government bonds, the less appetizing it is to risk their capital in the stock market. And the less risk appetite there is for stocks means a lower price when compared to profits. Why pay for what a stock might do when you can pay for guaranteed results from a bond?
As you can see in the chart above, the S&P 500âs forward P/E (price-earnings ratio) generally trades in tandem with the U.S. 10-year Real Yield. Now, notice the gap between the two â which suggests that either interest rates or stock valuations have to come down soon. Weâre betting on both... And a meet in the middle. But the tech sector is starting to look like an independent story... [Click here to keep reading this story (free) on derbycityinsights.com]( No. 3: Apple (AAPL) Gets a Breakout
Apple (AAPL) has recently broken above what was a key resistance level near $157 â and its 50-day moving average (MA) has just crossed its 200-day moving average to the upside:
Thatâs a bullish indicator known as the âgolden cross,â and particularly exciting considering that Apple has historically been a good bellwether for the entire tech sector. Keep an eye on the Nasdaq for bullish opportunities this week. No. 4: Tesla (TSLA) Is Light-Years Ahead on EVs
Ford (F) just announced that it lost $6 billion on its electric vehicle (EV) program and now hopes to be profitable by 8% in the sector... three years from now. Meanwhile, Tesla (TSLA) is turning out a new car every two minutes at its Berlin factory alone, just one year after beginning production.
Oh â and unlike Ford, Tesla has already achieved best-of-breed profit margins while scaling at this level. How anyone is betting against this company is beyond us. [Check out our latest Tesla coverage here for more on why we love this opportunity](. No. 5: Streaming Is Getting Crowded
It's no secret that consumer demand for streaming entertainment has boomed over the last decade â and the trend only accelerated with the stay-home pandemic. But after such a huge boom, overall demand has somewhat flatlined in more recent years as we find out that thereâs only so much content we can consume:
Now, itâs about winners and losers. And from a hardware perspective, Apple TV and Roku (ROKU) are seeing the most demand growth:
Roku, in particular, has placed a large bet on its own line of TVs â and that could make for an interesting opportunity for investors moving forward. With buzz already ticking 13% higher for Roku this quarter, I joined the guys at TD Ameritrade earlier today for a new Cash Tags segment to discuss just how bullish of a move this could be for Roku â check it out:
[Click here to watch this video (free) on derbycityinsights.com](
Until next time, [Andy Swan]Andy Swan
Co-Founder [888.206.1219](tel:+866-385-2076) | [contact@derbycityinsights.com](mailto:contact@derbycityinsights)
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