💰 Short Squeezes are Bringing In The Dough

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What’s on the Menu 🍴

Sometimes it makes sense to invest in hot trends…

And other times the biggest profits are in the most hated stocks.

The Daily Dough team raking has been raking in the cash while giving bears a beating all year.

Today we’re showing you how to spot stocks and cryptos before they break major resistance levels.

• Short Squeezes Bringing In The Dough 💰

• Bitcoin is Primed for a Big Move 💥

• Car Loans Are Getting Longer ☠️

• What To Watch This Week 👀

Today’s newsletter is a 5 minute read.

Short Squeezes Bringing In The Dough💰

We’re feeling some 2021 vibes right now.

Some of the best performing stocks lately, are the ones most people have bet on to fail by short selling shares!

That’s right… we’re seeing short squeezes happening left and right… and they’re making us some dough.

A simple Koyfin screener shows us the relationship between how highly shorted a stock is (short interest), and its 3 month performance.

Some of these stocks have had extraordinary outsized gains compared to the S&P 500.

CVNA has been a standout short squeeze… and the coolest part? We spotted it long before it was on anyone’s radar, and took action.

Nikki mentioned in our Wealth Building Community stock market update back in April/May, the potential of this squeeze.

She also mentioned it in chat multiple times.

Upstart (UPST) and Wayfair (W) have also been standout performers on the back of short squeezes.

So, does this begin a new season of profits to be had on some of the most hated stocks?

Maybe.

The last bout of speculation that we saw didn’t last long due to the market being in bear market mode.

But, new momentum has come into the S&P 500 and we think it’s in a new bull market.

The new bull could breed some momentum around short squeezes that stick.

The key is never overstaying your welcome, and knowing how to manage trading these explosive moves carefully!

Join our Skill Incubator Wealth Building Community to get access to trading and investing education, expert mentors & investing ideas.

Bitcoin is Primed for a Big Move💥

Markets go through times of explosive gains and boring consolidation…

And bitcoin’s been stuck in between $29k support and $31k resistance for over a month.

The longer bitcoin’s price flatlines, typically the larger the move when it breaks out of the channel.

In early January, Bitcoin ripped short sellers’ faces off when it snapped above the $18k trendline of resistance.

Since then, BTC has been making higher highs and higher lows - showing a clear sign that investors are accumulating bitcoin ahead of the 2024 block reward halving.

The best buying opportunity of the year was in early March when it looked like the US banking system was going to implode, sparked by the failures of Silicon Valley Bank and Silvergate Bank.

Price panicked down to the $19k support zone, and we were there to buy the F’in dip!

Now the big question is:

Can bitcoin get through the massive $30k resistance level that’s been a key area since 2020?

This price zone has been a magnet as seen in the yearly chart below:

• 2020: High and close of the year

• 2021: Open and low of the year

• 2022: Mid-point of the year

• 2023: High of the year… so far

If bulls are able to drive price through the $30k zone, there’s “open air” until the next major zone around $45k.

So, until then we’re patiently waiting for price to make a key move outside of this trading range…

And will be hunting for other opportunities in the crypto-asset ecosystem!

 Car Loans Are Crushing Consumers ☠️

Remember when a car loan used to be 60 months (5 years) long?

This gave you time to pay off your car, and still enjoy multiple years of not having a car payment.

But rising car prices have forced the auto industry’s hand and car loans are getting longer to give customers some financial breathing room.

Car makers like Tesla are now offering an 84 month loan (7 years!).

Longer loans mean lower, more manageable payments…

But it also means you will pay more interest over the life of that loan.

Essentially, you could end up paying thousands more for your car with an 84 month loan.

Especially now that the average new car price is over $48,000!

From a personal finance perspective, you never want to stretch things with a nice car - But it’s a mistake many people make.

Now, auto loan delinquencies have become the most concerning of all types of debt…

But it’s also something that we all saw coming.

The good news is, there’s always a cheaper car out there - You just have to lower your standards.

Or car companies need to do like Elon is doing at Tesla and lower car prices to balance out the high interest rates.

Vehicle deflation is the kind of deflation we’re all going to be happy to see after the past few years.

What To Watch This Week 👀

This is one of the busiest weeks of the summer in financial markets, with critical central bank meetings and a flurry of corporate earnings reports.

Three of the “Mega-8” tech companies report this week. Microsoft, Google, and Meta will give us a detailed look at how advertising, cloud computing, social media, and AI are faring lately.

A large number of other important companies report this week as well:

The Fed is expected to hike interest rates by 0.25% but their press conference on Wednesday will be key to understanding monetary policy going forward. 🔑

The European Central Bank and the Japanese Central Bank will also set rates this week, fitting another big piece into the overall macro puzzle.

Other items to watch this week include:

• Durable Goods Orders data

• Inflation rates within the EU

• US Personal Income & Spending reports

Will Central Banks throw cold water on this new bull market?

Stay tuned to Daily Dough for insights on all the market moving events this week! 🍿

Delicious Bites 😋

• Woman Gets 5 Years For Hiring Crypto Hitman To Kill Ex-Husband

• Crypto funding: Investment firms dominate $359M week

• The Fed Recognizes that Taylor Swift is boosting the economy

• Every financial situation is as unique as a fingerprint

Food For Thought 🧠

"Short selling is not anti-American; it is pro-truth.”
- James Chanos

DISCLAIMER: We are not investment advisors, and this content is for educational purposes only. We don’t offer financial, legal, or tax advice. Nothing we say is a recommendation to buy or sell any assets. Trading and investing are extremely risky, so please be careful and do your own research.