Edition #32- Monday, June 5th 2023
Hi Oak Investors,
Welcome to another recap on the week’s action and events!
At Oak Investing, I look to provide value for all levels of investor, whether it’s pulling together the week’s best articles, insights and breaking news, or clarifying new concepts for beginners.
I hope you enjoy this week’s recap, please get in touch if there’s anything more you’d like to see in The Acorn. If you like what you see, please like, subscribe and share to keep growing the Oak Investor community! 🌳
Thanks,
Gordon
Summary 📝
After several weeks of uncertainty and concern, the US finally has a deal on the debt ceiling. This means that the US will avoid defaulting on debt, which would have had severe global repercussions. Generally the markets responded well to progress, with the deal being signed by the President over the weekend.
The Fear and Greed index remained in the Greed category at 62/100.
The Volatility Index at 14.6 hit a yearly low, indicating that markets expect less than average volatility over the next 30 days. Despite this, we are in exceptional times, and with the debt ceiling now passed, markets will look to the next catalyst to figure out whether the recent rally can continue, or if uncertainty will remain.
With volatility so low, I expect the markets to be more likely to decline or tread water for a while, but anything below 20 on the VIX has historically been a good time to take some profits before something new spooks investors.
Quiz Question of the Week ❓❓
Answer at the bottom!
This Week in History 📰
Provided by The History Place
June 5, 1783 - The first sustained flight occurred as a hot-air balloon was launched at Annonay, France, by brothers Joseph and Jacques Montgolfier.
June 5th, 1723 - Scottish economist and philosopher Adam Smith (1723-1790) was born in Kirkcaldy, Scotland.
June 6, 1944 - D-Day, the largest amphibious landing in history, began in the early-morning hours as Allied forces landed in Normandy on the northern coast of France.
Major Events This Week 🔬
Economic Events (EST)
Provided by Unusual Whales
Monday
9:45 am S&P U.S. services PMI
10:00 am Factory orders
10:00 am ISM services
Tuesday
None
Wednesday
8:30 am U.S. trade deficit
3:00 pm Consumer credit
Thursday
8:30 am Initial jobless claims
10:00 am Wholesale inventories
Incoming Earnings Reports
Provided by Earnings Whispers
Notable Upcoming Earnings
Provided by Unusual Whales
Monday
GTLB (afterhours) Implied move: +/- 18.7% Sector: Technology
Tuesday
ASO (premarket) Implied move: +/- 9.5% Sector: Consumer Cyclical
CBRL (premarket) Implied move: +/- 6.8% Sector: Consumer Cyclical
Wednesday
OLLI (premarket) Implied move: +/- 10.3% Sector: Consumer Defensive
GME (afterhours) Implied move: +/- 14.2% Sector: Consumer Cyclical
TCOM (afterhours) Implied move: +/- 8.2% Sector: Consumer Cyclical
Thursday
DOCU (afterhours) Implied move: +/- 13.7% Sector: Technology
Friday
NIO (premarket) Implied move: +/- 12.0% Sector: Consumer Cyclical
Post of the Week 💌
✅ The halfway point of the year is approaching, giving us a great time to think about what went well last six months in the market, what we were wrong about, and what might be ahead. 🔮
What do you think of the predictions? Let us know 🤔
What’s Moving Markets? 🏃♂️
Provided by CNBC
Stock markets are ignoring a ‘laundry list’ of risks, strategist says
The Fed has raised benchmark interest rates 10 times since March 2022 in a bid to fight stubbornly high inflation.
“If that discount rate starts to tick up because investors feel that actually the Fed isn’t done after all, then we could have quite a sizable correction, so we’re just a little bit cautious there in terms of the next few weeks and months,” Howard said.
China may be ‘disruptive’ and fueling anxiety — but talks must continue, defense chiefs say
Decoupling from China is not an option, but finding a path to de-risk and reduce dependencies is important, Germany’s Defense Minister Boris Pistorius told CNBC.
China has been Germany’s most important trading partner over the last decade.
Similarly, China is Australia’s largest trading partner, but the relationship between the two remains “complex” as China continues to build up its military presence in the region, Richard Marles, Australia’s deputy prime minister and its minster of defense, told CNBC.
Oil prices rise after Saudi Arabia pledges more voluntary production cuts
OPEC+ pumps approximately 40% of the world’s crude and policy decisions can have a significant impact on prices.
The world’s top oil exporter Saudi Arabia announced further voluntary output cuts which will be implemented from July.
The kingdom’s output will decline to 9 million barrels per day from around 10 million barrels in May, Saudi’s energy ministry said in a statement.
Chart of the Week 📈
Provided by Chart of the Day
Tech investors are in buy mode.
The Nasdaq Composite closed out its fifth-straight weekly gain last week, far outpacing the other major U.S. indexes. Excitement surrounding chipmaker Nvidia's blowout earnings report and its leadership position in artificial intelligence technology drove last week's rally, but investors also snapped up shares of Microsoft, Meta and Alphabet, each of which have their own AI story to tell.
Investor’s Toolkit ⚒️
Unusual Whales- Options Flow and Analysis 🛠
5% off with code OAK2022
SimplyWallSt- Stock Analysis 🛠
5% Discount with code OAK
Want to Work with Me? 📈
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Pick up a copy of The Investor’s Blueprint, and learn at your own pace 📚
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Quiz Question of the Week- Answer ❓
Answer- C 2015
The highly-anticipated release of an AR/VR headset would be Apple's biggest hardware product launch since the debut of the Apple Watch in 2015.
Thanks for reading, have a great day!
Gordon
Disclosure ✅
This newsletter provides general information only. Before making any financial or investment decisions, please consult a financial planner to take into account your personal investment objectives, financial situation and individual needs.