What I am looking at June 15, 2022 Chaos ahead of the Federal Reserve’s key monetary policy announcement this afternoon? Jeffrey Gundlach and Bill Ackman are warning everyone. Have they been right? Not at the bottom: Hedge-fund manager Ackman was dead wrong and may have helped cause a pandemic low; bond manager Gundlach, the CEO of DoubleLine Capital, helped cause the bottom in 2018. Both were doomsayers at the bottom. This is not a financial crisis so far. Does anyone believe the Fed still has credibility? It’s go big or go home day for Fed Chairman Jerome Powell . U.S. Treasury yields pulled back slightly this morning … more to come. President Joe Biden picks on oil refiners, asking them to produce more to help lower gas prices. He added that refinery profit margins “well above normal” are not acceptable. But what can be done since they are already running at full capacity? Only price controls will get them lower. Can the president unilaterally declare that? Remember market presumes recession: will it be a doozy or garden variety and how much is factored in already? Can this be like 2020 low in March April? That was the beginning of speculation, = this is the end of speculation. This time no house money … Whither Crypto: Does Microstrategy (MSTR) really have a margin call? Gasoline up, rest of retail down. Nike (NKE) assumed with a buy at Morgan Stanley. Club holding Eli Lilly (LLY) is a buy at SVB Securities, cites multiple catalysts. B. Riley reduces semiconductor exposure. This is the capitulation phase writ large — right here, right now. Multiple compression risk. Sweetgreen (SG) price target cut to $22 from $28 at Cowen, which keeps buy rating on shares. Not a capitulation name but down 58%. Mortgage applications up 6.6% — surprising. Atlantic Equities downgrades Robinhood (HOOD) to sell on “deteriorating revenue trends.” Now? Monthly active users declining rapidly, falling equity trading volumes, plummeting cryptocurrencies. Oversold position in the market is minus 7 on the S & P 500 Short Range Oscillator, which indicates a time to buy ( anything above minus 5 is time to buy ). Only times it’s been worse than this Jan 26, 27, and 28 … S & P 500 was 4,326, rallied to 4,597 … a good level to buy and then sell. Morgan Stanley cut price target for Apple (AAPL) to $185 from $195. Takes Sonos (SONO) to hold from buy (had been a fave). The European Central Bank had an emergency meeting to address higher borrowing costs for many European governments. Bankers plan to create a new tool to tackle the risk of fragmentation. Qualcomm (QCOM) prevails against $1.05 billion fine imposed by European Union antitrust regulators four years ago. BTIG lowers price target on Expedia (EXPE) to $150 per share from $235. Snowflake (SNOW) hold to buy from hold at Canaccord. BMO Capital raises price target on Monster Beverage (MNST) to $95 per share from $90; keeps hold rating. Cowen says Netflix (NFLX) ad support equals bigger money. B. Riley lowers price target on Skyworks Solutions (SWKS) to $110 per share from $125. Tesla (TSLA) CEO Elon Musk says in an interview: EV newcomers Rivian Automotive (RIVN) and Lucid (LCID) will go bankrupt if nothing happens. Only 2.5% of S & P 500 stocks are above 20 day moving average; 4.5% above 50 day moving average. Nucor (NUE) sees next quarter EPS in $8.75 to $8.85 range, above $8.10 estimates. The Fed needs to kill this one. Not a record prediction, but a strong year in their preannouncement. Jefferies upgrades Tapestry (TPR), owner of Coach and Kate Spade brands, to buy on rosier financials. Keybanc cuts its price target on Darden Restaurants (DRI), parent company of Olive Garden and LongHorn Steakhouse, to $136 per share from $160. (Jim Cramer’s Charitable Trust is long AAP, LLY, QCOM. See here for a full list of the stocks.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust’s portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED.
