🗞️The Wrap: Market Makers

This week is all about tech companies: the disruptors, ‘stalkers’ and employers. We learn how to start a hedge fund and witness an expert use of a stop loss.

5 stocks making 52 week highs

  • Pule Group (PHM) +10.1% in the last week
  • Brown & Brown (BRO) +8.4%
  • D.R. Horton (DHI) +7.7%
  • Companhia de Saneamento (SBS) +7.6%
  • Evergy (EVRG) +5.1%

The Disruptors

The 2010s solved all our first world problems. No more need for Limewire or youtube2mp3 after Spotify gave us all the music in the world for free. And we’re thankful for that, Daniel Ek’s company has more than 2x as many listeners as closest rival Apple Music but an unexpected name is catching up. Amazon Music is the fastest growing music streaming service. Yep, Bezos does it all.

HSP or Acai Bowl in bed? Food delivery is booming but none more than DoorDash. While brand new to the UK and AU markets, DD is now the biggest provider in the States. With JP Morgan projecting the industry to reach $467 billion by 2025, it’s definitely a company to watch as rumours of IPO circle. Interestingly, UberEats is only the 3rd largest player with Grubhub 2nd.

Always Watching

You’ve watched Great Hack, you’ve seen those uncomfortable senate hearing videos,
Now here’s the truth on how you’re being ‘stalked’, straight from the Zuck’s mouth.
Facebook has opened the door on exactly what information they capture from you; and it’s more than you may think. Check it out for yourself here. Hundreds of apps and companies you interact with share your clicks with the tech giant who utilises them for better targeted ads. 

Slightly reassuringly, that feeling that your phone is listening is just a feeling but regardless, it’s pretty wild just how extensively Zuck tracks your phone usage.

Top 5 Gainers

  • Delphi Technologies (DLPH) +48.6%
  • Acceleron Pharma (XLRN) +46.8%
  • Adaptive Biotech (ADPT) +16.0%
  • Atlassian (TEAM) +13.7%
  • Innovative Industrial Properties Inc (IIPR

Top 5 Fallers

  • Usana Health Sciences (USNA) -19.1%
  • Equitrans Midstream Corp. (ETRN) -18.6%
  • Blueprint Medicines (BPMC) -18.4%
  • Scorpio Tankers (STNG) -16.8%
  • ProAssurance (PRA) -15.9%

Market Makers

Uber drivers in parts of Cali can now set their own rates. The secret pricing formula has been abandoned and control handed over to drivers. It’s all a bid to prove that their workers are autonomous contractors, not employees who require a minimum wage and benefits.

It comes across as the first half of a ‘perfect competition’ problem in high school economics. Everyone reduces their fares to encourage demand until drivers drop out of the market. And that’s what industry experts are predicting. A race to the bottom as drivers undercut each other.

What we’re listening to | How to Start a Hedge Fund

There really is a podcast for everything. A couple of finance nerds in the UK discuss their journey from Day 1 (zero capital, zero strategies) and walk through their each step to starting a hedge fund. I like how accessible the team from Willow Oak Advisory make it, starting with just £3000.

Be aware, the creators ran a derivatives fund that smashed the market for years before starting an equities fund, so their ability to find a winning strategy mightn’t be so easy for all (or any of us). But rest assured, they make clear how a good risk management system and discipline supplant any strategy. 

Trader Teaser

You are outside a room with 3 switches, each controlling one of the three light bulbs inside. If you can only enter the room one time, how can you determine which switch controls which light bulb?

You know the drill. First 3 correct replies win a 50% rebate on FX fees for their next AUD to USD transfer.

Best Sell | Luckin Coffee (LK)

The return of an old favourite – the Best Sell. After a mini-sell off earlier this week, it reminded us that avoiding a loss can be just as important as picking a winner. This trader got out of Chinese coffee retailer, Luckin (LK). It wasn’t all Luck(in), a prudent stop loss prevented an 18% loss.

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