10 Things You Need to Know – WAR FOOTING EDITION
What a week! We just saw:
- Israel launch an attack on Iran's nuclear facilities
- President Trump and Elon Musk make nice
- The US and China inch towards resolution on trade
- A big cooling of inflation
And a whole lot more!
So let's dig into the 10 Things You Need to Know About Markets Right Now:
1. War Is Driving a Resurgent Gold Trade
Early Friday, Israel launched a series of attacks on Iranian nuclear and military targets.
That drove a big rally in commodities like oil and precious metals.
Gold is up over 30% this year and this conflict could be a catalyst for more gains – especially if Iran retaliates.
Breaking through resistance at the $3450 area would the first step:
2. President Trump and Elon Musk Made Up
Last week, Elon Musk went to war with President Trump over the “big beautiful bill” being stuffed with more pork than a bacon factory.
Musk even dropped this bomb, though it was deleted this week.
But these two Titanic egos made nice this week, with Musk Tweeting “I regret some of my posts about President @realDonaldTrump last week. They went too far.”
And yes, this is a stock market story because it's created extra volatility in Tesla stock.
We'll talk about a problem with Tesla stock below in this article…
3. There's Been a Shocking Rally in Super-Speculative Stocks
We ran a screen in KoyFin for US stocks with these attributes:
- Revenues below $50 million
- Market Cap over $2.5 billion
So forget about profits – these companies barely have any sales.
The results were pretty wild.
We have 18 total stocks, and 15 of them are up this quarter, led by:
- NuScale Power (SMR): +194.8%
- Quantum Computing (QUBT): +129.4%
- D-Wave Quantum (QBTS): 111.6%
(numbers are as of Thursday June 12 at 10:50 am ET)
And the average return is 47%.
Yes, 47%.
Speaking of surges…
4. Biotech Is Showing Signs of Life, Small Caps Not So Much
In recent weeks, we've talked about the biotech sector waking up after 10 years of doing a whole lotta nothing.
And traders have been eager to see small caps play catch-up thanks to the light CPI and PPI reports.
So what's happening?
Biotech is rocking, with the XBI ETF up almost 6% this month.
Small caps? Not so much.
5. Sentiment Remains Weak
The latest AAII Sentiment Survey shows that 36.7% of investors are bullish.
This is off lows from earlier this year, as you can see on the chart:
But it's below the long-term bullish average of 37.5%.
In fact, we haven't had an above-average bullish reading since January 29, when 41% of investors were bullish.
Let's just remember that it's awfully tricky to turn sentiment numbers into actionable information for our trades.
6. Sami Abusaad Provided Another WTF Moment…
Sami's known for making bold statements, like when he accurately predicted Tesla (TSLA) $400 and Bitcoin $100,000.
And then on June 4, Sami announced that he put 54% of his IRA into the Direxion Daily FTSE China Bull 3x Shares ETF (YINN).
And guess what?
China's been doing great since then, with YINN up 13% and iShares China Large-Cap ETF (FXI) up 4%:
Now, is putting 54% of your IRA in a 3X China ETF sound financial planning?
Probably not.
But when Sami makes a bold claim, you oughta listen.
And FYI – we checked with the man himself and he said the long-term China story looks good, but YINN is ready for a short-term pullback.
So put it on the radar…
7. HIMS Is a Growth Name Worth Watching
Retail traders love Him & Hers (HIMS). Wall Street hates it.
We found out why in this exclusive interview with Jonathan Stern, who created the HimsHouse investor community:
8. The 90s Are Back
90s fashion and 90s music are back.
And then there's 90s tech stocks…
They are crushing the Mag7.
Oracle (ORCL) is up a whopping 29% this month thanks to a great earnings report.
And we see big moves in stocks like Micron (MU), KLA Corp (KLAC), and Applied Materials (AMAT):
Meanwhile, Apple (AAPL) and Tesla (TSLA) are getting left in the dust…
And speaking of Tesla…
9. Tesla Estimates Are in Freefall
One year ago, analysts expected Tesla to earn $3.45 a share in FY2025.
That number is down to $1.89 today.
Yet Tesla stock is up 86% over the last year.
How long can this last?
Tesla stock runs on hope… but the numbers have to add up eventually.
Right?
10. Inner Circle Prices Are Going Up
Prices on David Prince's Inner Circle community are going UP to:
- $7,000 per year
- $800 per month
Why do people love this community so much?
Find out in this webinar replay. Then go here to apply.
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