The dead cat bounce is over. Markets plummet

Swaggy’s Top Stonks. We compile and analyze data from multiple sources bringing you the top trending tickers from around the internet. If you haven’t subscribed already, please do so below.

Swaggy's Top Stonks

Together with... Rally

Welcome newcomers to Swaggy's Top Stonks and thank you for subscribing.

If you are new to the letter I'm happy to have you here. Exciting times ahead as we'll be merging content from various creators, bringing you (one of) the most inclusive market-trends newsletter on the Internet.

Some things to look forward to in the near future are going to be:

• A new "macro trends" edition of the newsletter that will be using charts and data from our upcoming premium dashboard that is currently in BETA testing.

• This NEW content will likely range from interest rates & inflation, commodities prices, and other macro (unemployment rate, GDP, fed funds rate, CPI, etc), as well as charting comparisons between all the data.

• Then, scope out which NFTs are seeing exponential growth and how exactly how correlated is the growth to their respective social platforms.

• and much, much, more!

Let's get started in today's letter.

Today's Letter

• Market Update

• Where do we head now?

• Trending Cryptos

• Top Meme Stocks

Market Update

All the signs hinted by JPOW lead to the market *potentially* making lower lows. As the saying goes, "Don't fight the Fed", and what the Fed is saying right now is that the bottom has not been found on the macro. It is what it is, but until then we make do with what we have. Here are a few notes from the JPOW speech, from my own perspective.

• Inflation is still too high and the Fed needs to use all their tools, aka interest rates, to bring it down. They are trying to do it gradually for a "soft landing", versus hiking 200 bps off the bat.

• JPOW noted that the housing market remains at levels unusually elevated, and so they are suggesting that the current monetary policy will make real estate more affordable to get more buyers in the market. He expects a possible correction in real estate.

• Unemployment may rise in order to soften the labor market, and finally bring wages and inflation down.

• These changes in interest rates may just end up bringing most asset prices down.

Here's a very short 2-minute clip of JPOW explaining the current state of housing markets.

How does Swaggy see this? Although the Fed's duty is to usually maximize employment, they fear inflation more they do a recession. Was what happened in 2020 with rates poor form by the Fed? Additionally, it was not even a year ago they saw what was unfolding in the commodity and energy markets as a "transitory" period of inflation and now they are hitting the panic button.

As history has rhymed before, I would tend to agree that raising rates is likely to cause a recession. Equity markets and valuations have historically been very correlated to interest rates, but will it be different this time around? The markets have already dipped heavily, year-to-date. Consumer spending is still doing okay, however, personal short-term debt is at the highs, and all the while the labor market is still holding up.

The thing is, everyone and their dog are expecting a recession. Don't recessions usually hit when least expected? PUT option buying is at all-time-highs and short interest has been increasing in some names and industries. IMO, the high put volume and high short interest is the perfect brew for a short-squeeze to the upside... We all know protection is always important, but how valuable is hedging to the downside after a MASSIVE drop over the last several weeks and months. The money was made.

Before we get into this week's newsletter, I wanted to shout out today's partner Rally. Its an awesome platform where you can buy shares in a ton of cool stuff, like Michael Jordan's game-worn jersey & other collectible assets.

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Where do we head now?

In the short-term meme-stocks have been killed. In the long-term, they will be back. The recent Bed, Bath, & Beyond squeeze showed us that most rallies, whether they be in over-all markets or select names, have been extremely short-lived. We're still technically in a bear market and downtrend. Here's how the technicals are looking.

SPY has re-traced to the late 2020 high... but if there is one thing to remember is that many GURUs were calling for complete market obliteration back during the crash at the start of the pandemic. Back then, SPY had fallen 30% to the downside and expectations were another 50% drop, what happened next will shock you.

Is it coincidence that the markets have been dropping since the U.S 10-year has been rising from the start of the year? Something to think about.

Trending Cryptos

Top cryptos this week in terms of retail chatter: Bitcoin (BTC), Ethereum (ETH), the LUNAs (Do Kwon investigation), and Chainlink (LINK).

GRIT is going big or going home on the 20% of our “high-risk” portfolio where we know these investments could go to zero…or 10x! Subscribe to our new CRYPTO NEWSLETTER to follow us along this journey and see what we’re buying, why we’re buying it, what we’re paying, and what else is on our radar!

Top Meme Stocks

Meme-stock sentiment is beginning to pivot on the more bearish side than bullish. Nothing new, but the some of the usual suspects are still at the top of the list:

• TSLA

• AAPL

• GME

• CPI (inflation)

• CORN (Bitcoin/Crypto)

• NVDA

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