DHUnplugged 600: Upside The Head

Markets getting a kick out of Biden's lean in and walk back. Will Smith - what was that? Yields invert - 10Year hits 2.5% Oil crumbles on the China lockdowns - everything is backasswards. 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 - Strong Finish for the month - Biden leans in and walks back - North Korea stirring the pot - China - more lockdowns (Supply chain going to break) - LIMERICKS! - Announcing the Winner of the CTP for URA Market Update - Yields - inversion across most of curve - Shrugging all hots off like Chris Rock - What a pro... (End of stand up) - Crude oil drops 7% on China Shanghai lock-down news - Apple says big drop in output needed - stock barely budges (ends higher on  the news) - Lots of talk about taxing unrealized gains as well as moves against buybacks - Strong month - markets up > 3% (Looks like window dressing and short unravel) ---*** KRI HITS +6 this morning - OVERHEAT -- 2/10 invert for a minute today (Cease Fire = higher chance of Fed rate hike) KRI Update - Was +6 this morning (Closed at +5) - The overall market, as measured by the KRI algorithm, is nearing a critical level of being overheated. The potential for a key reversal is high over the next few days. - Caution with respect to long side is warranted. Evaluate long positions, tighten stops and consider reducing overall long exposure or hedge out risk in the near-term. Will Smith - Real or Fake? Markets Moving on this? - Russia is prepared to allow Ukraine join EU as part of ceasefire talks as long as it doesn't join NATO - Something off with markets - rallying like cease fire will fix all... But: - - Quicker rate hikes more likely --- No change in impact from oil prices Shanghai Lockdown - Shanghai's city government said on Sunday all firms and factories would suspend manufacturing or have people work remotely in a two-stage lockdown over nine days, after the city reported a new daily record for asymptomatic COVID-19 infections - Oil Dropped big time on this ans some softening - Sapping fuel demand further, public transport, including ride-hailing services, will also be suspended during the lockdown. Fighting Words - U.S. President Joe Biden said that Russia's leader Vladimir Putin "cannot remain in power" in Poland over the weekend - Biden's comments on Saturday, including a statement earlier in the day calling Putin a "butcher" - Frantic walk back after the comment - but it seems that most buying the twist of what was said. M&A News - HP Inc said on Monday it would buy audio and video products maker Poly (aka Plantronics) for $1.7 billion in cash, a move that would help it take advantage of the electronic products boom sparked by hybrid working. - The deal offers $40 for each share of Poly, a premium of about 53% to the company's last closing price. Come on... - Huawei Technologies on Monday reported asset sale gains helped lift profit 76% in 2021, turning in its first set of results under Chief Financial Officer Meng Wanzhou since she returned to China last year after nearly three years' detention in Canada. - In its biggest-ever annual gain, net profit rose to 113.7 billion yuan ($17.8 billion), the smartphone and computer giant said. - Revenue skidded 29% to 636.8 billion yuan, in line with Huawei's previous forecast in December ---- Asset gains are legit, but need to be stripped out (Bad reporting) Meanwhile - Apple reportedly cutting production on Airpods and some iPhones - demand issues - Apple is preparing a hardware subscription service for iPhones that could launch as soon as the end of this year, Bloomberg reported Thursday.