[Charts] Death, Used Cars and Meme Mania

You're receiving this email as part of your subscription to Trend Trader Daily. [Unsubscribe here](. [Charts] Death, Used Cars and Meme Mania By Lou Basenese Friday, July 9, 2021 Justin Timberlake can keep bringing sexy back. I'll still bring the charts back every time Friday rolls around in the Trend Trader Daily Nation. Original TTD gangsters know the drill by now. So scroll on down. For the newbies in our midst, the purpose of our charts edition is to distill down some of the most timely and relevant trends – in other words, the most investable ones – to a handful of graphics. That way, all you need to do is take a quick glance and you’ll be up to speed and poised to profit. With that in mind, this week I’m dishing on innovation in biotech, retail trading fatigue, and the surprising reason so many people are taking out new car loans. So let’s get to it… ADVERTISEMENT Write this Number Down: 0001139685 This code is the KEY to unlocking almost unbelievable investment gains. It's not an options symbol, bond, or any crypto. But 10-digit codes like this could potentially change your life. [Click here now to see how »]( >> No Death Cross Here If you know anything at all about technical trading, there’s nothing scarier than the dreaded death cross. If you don’t know, you can read all the gory details about it [here](. On the flip side, of course, is the beloved [golden cross]( chart, which portends major rallies and profits ahead. Boy, do I have a golden cross of crosses to show you today! But here’s the thing – this one doesn’t reflect the highly desirable pattern for an individual stock. Instead, it does so for an entire industry — biotech, which I’ve written extensively and quite bullishly on for some time. Take a look: (click image to enlarge) As you can see, R&D spending catapulted above more mundane uses of cash like buybacks and dividends. This signals that major pharmaceutical companies are sitting on a goldmine of promising new drug platforms that they believe will generate substantially higher returns if they keep investing in them. The more money the big boys throw at these newer modalities (think mRNA, immunotherapies, etc.), the more valuable the most innovative, smaller biotech companies operating in the same space become. You see, just like patents represent an early predictor of profits in the broader tech sector, so does this type of R&D spending for biotech companies. So what are you waiting for? Especially since this profit opportunity also comes with the added benefit of saving lives. Load up on biotech or get left behind. No Credit, No Problem Headlines multiplied like Gremlins this week about the surge in new auto loan and lease applications. Per Equifax, consumer demand surged 39% in April, compared with the same period last year. What’s the problem? Well, the Chicken Littles want us to believe that the American consumer is getting back to their dangerous, binge-buying ways that ultimately can collapse markets. Nonsense! They’re just (wisely) responding to inflated asset prices. Take a look: (click image to enlarge) The value of used cars exploded in the last year, thanks to supply chain issues caused by the pandemic. This is a temporary situation, of course. So when you can get more cash for your clunker than ever before, you absolutely should leverage that jalopy to be able to afford a new car. In other words, the surge in new auto lending isn’t a cause for concern (yet), but more a confirmation that market forces are functioning properly. Meme Mania Goes On Holiday? As I shared a [few weeks ago](, retail traders have been flexing their collective might for the last 18 months or so. Much to traditional Wall Street’s dismay. Based on recent trading activity, though, we’re at a key level. As you see in the chart below, a basket of 37 meme stocks tracked by Bloomberg is about to break the 50-day moving average and enter bear-market territory. (click image to enlarge) Does that mean the meme mania is dead? Hardly! If anything, the weakness suggests traders are rotating out of the old meme stocks into new ones. The trick, of course, is figuring out which ones before everyone else does. And I’ll have more to say about that topic in future updates. So stay tuned. Ahead of the tape, [Lou Basenese] Lou Basenese [Terms & Privacy](| [Unsubscribe]( 301 S. Perimeter Park Dr. Suite 100 Nashville, Tennessee 37211 RISK NOTICE: All investing comes with risk. That includes the investments teased in this letter. You should never invest more than you can afford to lose. Please use this research for the purpose that it's intended — as research only. You should consult a professional financial advisor before ever taking a position in any securities you see herein. 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