Chart of the Week

By John Del Vecchio and Brad Lamensdorf The headlines are filled with talk of massive short squeezes and huge moves in companies of dubious quality. The Goldman Sachs Non-Profitable Technology Index illustrates this point very clearly. The stocks in this index consist of non-profitable U.S. listed companies in innovative industries. As the chart shows, the…

By John Del Vecchio and Brad Lamensdorf Small speculators are partying like it’s 1999. Not since the Internet Bubble has option activity from small options traders, those trading 10 contracts or less, has been so speculative. The chart below, courtesy of SentimenTrader, shows the put-to-call ratio nosediving. The result, with this call buying activity, is…

By John Del Vecchio and Brad Lamensdorf Bitcoin news sucks all the oxygen out of the room. However, it’s not the only market rallying that may indicate inflation is afoot.  Take a look at copper. Or oil. Or corn. Or soybeans. These commodities are flying and that is inflationary.    It is no coincidence that the TLT’s are…

By John Del Vecchio and Brad Lamensdorf 2020 was an exceptional year for expensive stocks! A fascinating research piece produced by GMO (managers of $60 billion +) highlighted that in 2020, value stocks returned their worst 12-month performance in history. What’s more, the spread between value stocks and the market is at a historical gap….