Wednesday, June 24, 2020

Odds and Ends: June 2020

Space X

We begin with Space X. No need to remind everyone of the great accomplishment it achieved being the first commercial carrier to send astronauts to the Space Station. What might be overlooked is the other entry by the firm to offer broadband. Its Starlink Constellation is adding satellites and will soon have the capacity to begin operations.
In a related aspect, Astrobotic technology has been awarded the contract by NASA for the rover to the moon in 2022. This is a private company.

Failed test...

The S&P 500 failed last Friday with its test of the 3140 level. This is important because that date was options expiration day. This points to a negative trend, however the market still has enough bulls to try another attempt. If it fails again, this would be a near-term triple top.
One other point. This Friday is the end of the quarter to which means extra volatility. According to CNBC, the market could lose $65 billion in pension money to which may go to bonds. There are many doubts about this market, especially with the virus. Combining the two aspects, we, at Evolution see a down day.

Beware Greeks bearing gifts...

Goldman Sachs may not be Greek, however the firm came out of the closet, so to speak, by saying that they believe that gold will reach $1800 before the year ends. They go on to say that they see the precious metal breaking $2000 sometime in 2021. When fiat bankers say something nice or recommend gold, you know that they will let it rise and then, Boom! They will seek to short the metal. Just be careful. Put your stops on your gold stocks. The firm also sees money leaving the US due to low yields by the treasury.

Tidbits from the World Bank

The agency said this recession is far more reaching than even the Great Depression. In the 1929 hardship, the effects of the depression hit 83.8% of global nations. Today, the coronavirus has spread its pain to 92.9% of the world's nations.
In a related aspect, the UKs debt is now larger than their whole economy. Not good.

Speaking of pain...

Starwood Capital has missed its second consecutive debt payment. The owner of malls is looking as empty as its parking lots. With many firms grabbing stimulus loans, and many others rushing to bankruptcy court, I remind you that the Federal Reserve will release their latest stress tests for the banking industry on June 25th. Did you know that banks reveal loans when defaults happen, but they do not have to reveal what other dangerous loans could be connected to a default situation? So much for Dodd-Frank. By the way, the Fed sees the fourth quarter in 2020 being lower than the fourth quarter of 2019 to the overall economy.

Speaking of tension...

Everyone is aware of the trade tensions between the US and China, but a new, more dangerous tension has erupted between China and India along their common border. The news is sketchy, but it was reported that 20 Indian guards have been killed. Isn't the pandemic enough complications for the world?
More China: The Chinese have sent their last satellite into space. This will allow them to have their own operating global navigation system. They will move away from the US, GPS. Under military aspects, this is dangerous because prior to that, the US could close GPS to any Chinese belligerent
act. China has been working on this for two decades. Now, they will compete with the US. Their system is called, "Beidou System." I foresee a more aggressive stance by China to which will show their true colors. After all this is the year of the rat.

Speaking of the virus...

A new app is being launched in Ireland to trace the virus. I like the effort, but I worry about future applications. It is one thing to seek to fight a disease and another to track people and killing our freedom of movement and privacy. This is my worry. We can see the playbook from the "sick" people in the pharmaceutical industry. They make a dangerous, addictive drug. They seek permission from the FDA to offer the drug as a pain reliever with cancer victims. When they get approval like with the opioids, the prescription pad opens for everything and anything.

Wrap Technology...

is a new policing technique that is environmentally and humanely safe. The "Bolo Wrap" is shot from a cartridge. It is a metal rope that "ties" around a target. This allows the police to gather the suspect  in a safe manner. There should be no loss of life. This is the next step for all police departments. In disclosure, I'm all-in on the stock (WRTC).

Other new ideas...

The latest smart phones will offer a new app that can read your forehead to check your temperature.

Facial recognition...

will be taking a step back after it was revealed in a lawsuit that its application of facial recognition matched 27 Congressman to convicted felons.

Bad time for women...

April may bring flowers, but along with its showers, is this sad data. In Mexico, eleven women were murdered every day for the month of April. What the hell is going on down there? Is the flu making people crazy?
It gets worse as things are worse in Iran.
For Honor?
I don't want to get into a religious conflict, but anyone contemplating on becoming a Muslim consider this. In Iran a father beheaded his 14-year daughter because he did not approve of her boyfriend. The older boyfriend seeking his daughter bought dishonor to the family. This happens all the time in Islamic nations. Although the practice is condemned, even by the supreme leader in Iran, it still happens. There were no arrests or charges bought against the father.
Islamic Law may not allow this practice, but words are cheap, action counts.

On a lighter note...

Lamborghini is offering their cheapest model, only $200,000 for Father's Day. I know the date has passed, but if one considers, supply, distance and the pandemic, what's a few days late?

It's a Mad, Mad, Mad, Mad World...

is one of the great comedy classic movies of all-time. You can see this in the stock market every day. Hertz offered a $500 million in a stock offering. The company revealed that the shares might be worthless. After this announcement the stock climbed. Wirecard cannot account for $2 billon. Yes, with a "B".
How about this? A new, small electric truck company with no production and no revenue raised more money than Ford. This makes the upstart worth more than Ford? Get real!
The firm, Nikola plans to target Ford's F-150 truck. It's a Mad World!