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JPOW Part 2: More To Come… | Short $SFIX

Happy hump-day folks! It's already been a wild ride for markets, but there is no slowing down - after Powell did as we expected yesterday and broke the news that a higher target rate may be in the realm of possibilities, markets took a spiral and the $VIX popped 6%. That said, it's important to know that he's not done and will be speaking again to the house of representatives at 10 AM today, so stay dialled in and read on for your daily dose of market inspiration within this 232nd Coachman’s Report!


Markets in Review

In the premarket today, futures on the Dow, S&P and Nasdaq seemed to have halted their descent with all indices remaining unchanged at the time of writing. Panning to interest rates, Powell said that if a more aggressive tightening is needed they are prepared to do what needs to be done, reiterating that “We’re taking the only measures we have to bring inflation down,” and asking whether “ working people [will] be better off if we just walk away from our jobs if inflation remains at 5, 6%?” - on this news, markets dropped sharply, causing the S&P to finish the day at 3,987 points.

The $VIX jumped 6% on this repricing of the options market and there still even may be more to come, with another speech by Powell in front of the House later today and the release of February’s employment figures coming on Friday. Lastly, the probability of a 50 bp rate hike on Mar 22nd is now sitting at 75%, compared with the 30% it was on Monday.


Short: Stitch Fix, Inc. (SFIX-NASDAQ) | Timeline 1 day

Stitch Fix, Inc. (SFIX), which sells a range of apparel, shoes, and accessories for men, women, and kids through its website and mobile application internationally, reported subpar earnings yesterday after the market closed. The company missed earnings and revenue estimates by 71.40% and 0.27%, respectively - and as net revenue had a 20% decrease year over year, the company transitioning their CFO may not have been a bad idea. (Full Story)

Turning to the chart, SFIX has had a challenging year amid inflationary pressure, falling from highs in the mid-teens. That said, as the price approaches the upper resistance level of this downward price channel, a rejection is likely - especially as Stochastic RSI continues to fall from extremely overbought levels.


Zooming Out...

New Nord Stream News

According to new US Intel leaked to the major news outlets the perpetrators of the Nord Stream bombings are a known unknown, let me explain. According to the intel, the group of six behind the attack allegedly used falsified documents to rent a yacht in Poland which was then used to transport the explosives to the detonation site. While no arrests have been made, German authorities searched the ship earlier this year and continue to investigate relevant objects. In a statement from Kyiv, the Ukrainian government has denied all involvement, while Russia has again called for a UN-led probe into the incident. In Ukraine proper, the battle for Bakhmut continues to rage on as Russian forces have advanced further into the destroyed city. Britain’s Bold Return

As a result of the unusually cold weather systems sweeping Britain, the country’s maxed out energy grid was forced to fire up backup coal power units for the first time. While previous warnings have been issued, including the threat of rolling blackouts over the winter, this move goes against the rhetoric of climate protestors and politicians alike. Aside from this unexpected storm, the future of the country’s energy security remains up in the air as prices soar. As recorded by the UK’s most recent datasets between Q4 2021, and Q4 2022 the average domestic electricity bill shot up 59%, while the average gas bill rose 95%.


Making Headlines...

Google and Meta over-hired thousands of employees…

  • Thousands of tech staffers at Meta and Google do "fake work" and were brought on to fulfill the "vanity metric" of hiring, according to outspoken investor and tech veteran Keith Rabois. (Full Story)

Under pressure, TikTok unveils new European data security regime

  • TikTok has announced out a new data security regime, nicknamed “Project Clover”, amid growing pressure from lawmakers on both sides of the Atlantic. (Full Story)

Bank of Canada seen leaving rates unchanged as growth stalls

  • The Bank of Canada is expected to keep rates on hold on Wednesday, becoming the first of the world's major central banks to suspend their tightening campaign, after economic growth stalled in the fourth quarter of last year. (Full Story)

Adidas’ split with Kanye West's Yeezy set to wipe out $1.3 billion in earnings

  • Adidas slashed its 2022 dividend by 79% Wednesday, as the end of the German sportswear giant's partnership with "Yeezy" designer Ye looks set to hammer its profits. (Full Story)


Chart of the Day: If this data is correct, there’s some intra-industry equity and equality work that needs to be done.


“I have not failed. I've just found 10,000 ways that won't work.”

- Thomas A. Edison


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