🗞️The Wrap: Call Me

How IBM is doing their bit against discrimination, perhaps the most exciting new ETFs in Stake history and retail traders getting one up on the big dogs.

5 Most Traded Stocks on Stake

  • Tesla (TSLA) -12.4% in the last week
  • Hertz (HTZ) +387.5%
  • Boeing (BA) +37.8%
  • Apple (AAPL) +5.9%
  • Delta Airlines (DAL) +25.8%

Call Me

As they say, don’t tell me what you think, show me where your money is. Perhaps the clearest proxy for investor sentiment is the CBOE Put/Call ratio. The Put/Call Ratio is at its lowest level since 2014. This means there are more traders taking positions in call options (make bank when stock prices rise) and fewer in puts. To some it’s a warning sign (fearful when others are greedy), to others it just shows the bear market rally has been legitimate.

What makes this stat particularly interesting is who the buyers happen to be. Options volume amongst retail traders is up around 5x the decade long average. While retail volume is unlikely to influence the bigger named stocks, we have seen what happens when a “DD” post on r/wallstreetbets gets hot.

Is retail money dumb money? A look at US trading patterns shows that the small guys are getting one back against the billionaires.

New Product Alert | FX ETFs

At the time of writing, the USD (DXY) had fallen for 9 consecutive days; a feat not seen for 14 years. Stuff that. While online shopping is a little bit cheaper, the value of our portfolios is starting to slip. It’s a double-edged sword; money printer goes brrr, SPX goes up but then you get bitten with a devaluing USD.

It’s a nerdy thing to say but I’ve never been so excited for a new product on Stake; currency ETFs. $FXA and $FXB track the value of AUD and GBP in relation to USD respectively. FXA has risen over 8% as the Aussie dollar has fallen for instance. There is also a CAD (FXC), CHF (FXF) and JPY (FXY) option for those looking to speculate a little rather than just hedge in their home currency. Sorry Kiwis, no NZD option yet but we’ll keep watching the space to find an option.

Of course, I am not recommending these to anyone; just making you aware they exist. Understand the fee structure, the underlying assets, and make your own decision on currency movements before buying these ETFs. The Aussie is down 6.5% this month, the last thing I need is a lawsuit.

Top 5 Gainers

  • Hertz (HTZ) +387.5% in the last week
  • Nikola Motors (NKLA) +154.1%
  • Latam Airlines (LTM) +94.5%
  • Nio (NIO) +42.1%
  • Resideo Technologies (REZI) +39.9%

Top 5 Fallers

  • Compugen (CGEN) -20.9% in the last week
  • Slack (WORK) -18.4%
  • MongoDB (MDB) -14.1%
  • Repligen (RGEN) -13.3%
  • Tesla (TSLA) -12.4%

IBM

IBM has decided to discontinue their provision of facial recognition technology.
There have been multiple instances of nascent technologies displaying discriminatory characteristics. IBM decided to restrict their development of the tech while uncertainty existed around how government agencies would deploy it.

Late last year, the US government confirmed that most facial recognition technology proved discriminatory. Black, Asian and Native American faces were misidentified by FR technology at alarming rates; false positives were returned far more regularly than white faces. One of the most serious side effects of this flaw is the potential to be wrongly accused of crimes.

Apple co-founder Steve Wozniak’s wife was infamously denied an Apple Card despite having equal income and the same bank account as her husband.

What We’re Reading | Ray’s Reading List

What’s one book recommendation when you can have 15. The team at the AFR put together Ray Dalio’s most recommended books. They’re centred around the world and the self rather than investing but there is only so much you can read about charts and ratios.

Check it out.

Trader Teaser

I have a money box that’s 10 inches wide and 5 inches tall. Roughly how many flat $50 bills can I place in my empty money box?

Best Buy | $HTZ

Bankruptcy is in vogue; Hertz is just one of many companies to skyrocket while on the brink of death. This trader made the most of this high risk dealing. Let’s see how long they survive.

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