DHUnplugged #599: Spiking, Ripping and Raging

One of the best week's since.... Markets continue in rally/rip mode as "hope" that Ukraine beats Russia. China stimulus hopes propel tech shares to the moon PLUS we are now on Spotify and Amazon Music/Podcasts!   Click HERE for Show Notes and Links DHUnplugged is now streaming live - with listener chat. Click on link on the right sidebar. Love the Show? Then how about a Donation? Follow John C. Dvorak on Twitter Follow Andrew Horowitz on Twitter Warm Up - Massive Rally - Just to Suck you back in to this Crapfest (defined last show) --- Big winners were the biggest losers over the latter part of last week ---- GS Short basket flew - 20%, Chinese Stocks > 35% last week - Usually see these kinds of moves - ONLY in Bear market - Need to be picky about positions...Opps! - The nature of bear markets - big swings with VIX above 25! - Russia - COUP??? - LIMIRICKS! Market Update - Get em' - Oversold, pent up, rally after Powell's 0.25% hike - Fast Forward and he is hawkish again - saying 0.50% at any meeting is possible - Big moves for Boeing - Plane down in China WHAT A WEEK! - Market's "V" again off of the hope that Jay Powell and Friends will take it easy on the  rate hikes. - 0.25% and every meeting this year is live. - During press conference he seemed to put many at ease, but was still very hawkish. - He said - He didn't see an elevated chance of a recession next year (sparked markets instantly higher) - Best week for over 2-years, markets in green for MTD (HUGE MOVE on individual names) - China stocks rocket! KWEB up 35% for the week (index of Chinese tech names) THREE NUMBERS TO RUIN YOUR DAY: - $110 (oil) - 2.30 (10 Yr) - 0.38 (2/10 spread) 2/10 Spread Yield Curve Flattening And Then - - Rates - Spike - - current 10 yr > 2.2%, Oil moving up again - Inflation in Germany - PPI  > 25% YoY - War still raging - Food issues starting, more supply chain issues ..... - So what is next catalyst for markets (Earnings?) - EU considering Russian Oil Embargo (Self - mutilation) Rates - More - St. Louis Fed's Bullard says the central bank should raise rates above 3% this year - As the lone dissenter at this week's Fed meeting, Bullard said in a statement that he would like to see the central bank's benchmark interest rate boosted above 3% from the near-0% level where it had stood. - Bullard was the only FOMC member to vote against the move, stating that he would have preferred a rate hike of 0.5 percentage point, or 50 basis points. He added that the Fed also should have started the process of reducing the nearly $9 trillion in bond holdings it has accumulated over the past 14 years. More to Ruin your Week - National Security Advisor Jake Sullivan at press conference says President Biden and EU leaders will decide Thursday what they should do if Russia uses a nuclear, chemical, or biological weapon in Ukraine - Good News: A Kremlin spokesperson apparently out stating Russia would only use nuclear weapons if its very existence were threatened - 2 comments on Nukes that are not needed. Russian Coup? - A group of Russian elites are allegedly conspiring to overthrow Russian President Vladimir Putin and “restore economic ties” with the West, according to Ukrainian intelligence. - Who is Putin's food taster? - Crazy info-wars going on.... Where to? - China says Taiwan, which it views as a breakaway province to be brought back to the fold, by force if necessary, is the most sensitive and important issue in its relations with the United States. - "Some individuals in the United States are sending the wrong signals to pro-independence forces in Taiwan, and that's very dangerous," Xi told Biden on a video call. - If the Taiwan issue is not handled properly, it will have a subversive impact on the relationship between the two countries." China Plane - All Lost - China Eastern Airlines will ground all Boeing (BA) 737-800 jets as some...