Pre-Market Prep: Buying Just Fell off a Cliff... What it Means for You

Plus: How to Win the U.S.-China Chip Fight [Money Morning LIVE] Dow Jones | 13,679.04 | -0.82% S&P 500 | 4,411.66 | -0.79% Nasdaq | 33,922.72 | -1.07% *prices as of 4:00 pm 7/06/23 --------------------------------------------------------------- Friday, July 07, 2023 Goliath vs Goliath --------------------------------------------------------------- "LET'S GO FOR THEIR BREAD AND BUTTER." It was an all-caps call to arms. And the attack that followed couldn't have come at a more precise moment. Fortunes shift and wane in Silicon Valley. It's an arena where only the strongest survive. A cutthroat world with success often born from others' missteps and failures. Giants have been dispatched by one false move. While others have been crippled permanently. But those that refuse to give up... those are worth watching. Meta Platform's ([META]( stock chart is the epitome of a momentum trade. Shares have surely and steadily climbed higher, from $122.82 in January to $293 yesterday. That's a gain of 138.5% in a little more than six months. [Here's what we think is coming next](... --------------------------------------------------------------- Follow the Money Garrett {NAME} --------------------------------------------------------------- We showed yesterday that insider buying has cooled off. Well, today, we're outright concerned. The table below shows that chief financial officers - the folks with the clearest, best picture of the financial health of their own companies - have virtually stopped buying altogether... In the past 10 days, we have seen just one purchase greater than $50,000. That would be worrying on its own. But the fact that this is happening days before earnings season kicks off is a red flag. That it's happening three weeks out from another likely-50-basis-point rate hike is a burning, screaming red flag. Our experts recommend selling calls on existing positions as a way to maximize returns and generate income at a profoundly uncertain time. --------------------------------------------------------------- Across Money Morning --------------------------------------------------------------- The Inflation Driver No One's Talking About... Garrett {NAME} believes five trends will dominate markets and moneymaking in the 2020s. He's not talking about doom-and-gloom, merely the reality in which we'll all need to operate. One of the most important trends is "de-globalization," which is much bigger than the "re-shoring" politicians like to talk about. This trend could well cause prices to be "higher for longer," but sharp investors can clean up on these developments. [Here's how](... Get Chris Johnson's "Earnings Hitlist" Here First... If it feels like we just finished with earnings, well, we did. But, believe it or not, we're fast coming up on another enormous raft of reports. This brings us opportunities to profit in individual stocks, of course, but these earnings can also be an immense catalyst for the broader market - a reason to spiral 3% lower or ride a stratospheric rally. And there are six companies in particular that CJ is looking at to start with. [They're here](... Learn the Obscure French Concept That's Screwing Up Markets and Ruining the Country... July 4 is behind us - time to learn about a trend that's making this country less free by the day. This is the very force that's "enabled" the United States to slip from 8th down to 25th place in world economic freedom rankings. It's the reason why Amazon.com makes a killing... but that charming corner bookstore in your town went belly-up years ago. [Here's what you need to know](... How to Cash in on the U.S.-China Semiconductor Standoff... America fired the latest shot in the high-tech battle for digital supremacy when it banned the export of entire classes of sophisticated chips to China. This has upended business as usual for this important sector, but, for investors who know how to move, it's creating big opportunities. [Shah Gilani has more](... --------------------------------------------------------------- Chart of the Day: Bulls on Parade... or to the Slaughter? --------------------------------------------------------------- For five consecutive weeks, bulls have reigned on the AAII Investor Sentiment Survey. The percentage of investors that see the markets gaining over the next six months has been above 40% since the first week of June, even notching a new 52-week high this week. We haven't seen this level of optimism since October to November 2021. I tend to view such readings as contrarian indicators... Though, I did note in June that the last time we saw a [bullish trend like this]( the S&P 500 gained 15.5%. 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