Green Day | Short $TBI

Well folks, the news came as expected yesterday and the Federal Reserve hiked interest rates 25 bps, bringing the Fed Funds Rate to a range of 4.25 to 4.5% – markets crave certainty and equities rode the wind of this announcement to the tune of 1.5%! Read on for more on that, as well as stories on Biden’s document troubles and Ontario’s milk fiasco within this 209th Coachman’s Report!

Markets in Review

Following yesterday’s advance for equities, the pre-market is looking quite different this morning with the Dow having decoupled from the S&P and Nasdaq – futures for the three indices are currently -24, +56 and +155 bps respectively. Taking a closer look at the S&P 500, it seems as though 1 or 2 more green days could move the needle in triggering a cross of the 200-day MA over the 50-day MA, this technical event usually confirms the true beginning of a bullish trend, however, at what cost this time?
The S&P’s P/E multiple has increased to over 22x due to the less-than-impressive earnings season, and the share of bearish investors in the market is still marginally higher than those bullish with another third sitting undecided – check out the investor sentiment numbers here. Moreover, the last thing investors need right now in trying to put the bear market behind them is a run with no legs to stand on as this would in turn only spark another leg to last year’s downward market.
Short: TrueBlue, Inc. (TBI-NYSE) | Timeline: 1 day
TrueBlue, Inc. (TBI), which provides specialized workforce solutions in the United States, Canada, and Puerto Rico, reported subpar earnings yesterday after the market closed. The company missed earnings and revenue estimates by 2.82% and 0.55%, respectively, on top of Net income per diluted share coming in at $0.21, compared to $0.57 in the fourth quarter of 2021. (Full Story)
Turning to the chart, TBI has had a rough last 12 months, falling from highs in and around the $30 mark, with no sign of a rebound in the near future. That said, as the stock’s Stochastic RSI begins to reach overbought levels towards the end of this descending triangle (a widely used continuation pattern), traders should expect high selling pressure through the next trading session.
Zooming Out…
Further Biden Document Blunders
Following the FBI’s search, and subsequent clearing of President Biden’s vacation home questions have begun to emerge regarding the early days of the investigation into missing documents in the former VP’s possession. It’s been revealed that the first batch of documents found at the UPenn think tank bearing Biden’s name were first discovered on November 2- over three months prior to the White House’s disclosure of the incident. What’s more, newly released testimony revealed that somebody prohibited the National Archives from putting out a press release to outline the breach of security.
The perpetrator is still unknown, as even after closed-door testimony the general counsel to the Archives told lawmakers that he couldn’t name the individual responsible for the gag order. Oversight Committee Chairman James Comer believes that only two authorities could have issued such an order, either the White House or the DOJ.
Ontario’s Milk Mishandling
A video from an Ontario dairy farm released yesterday on Twitter has Canadians questioning the methodology of the system governing dairy production within the country. In the video, a farmer details how his operation is being forced to dump over 30,000L of milk due to it being deemed over quota. For context, within Canada, the dairy industry is controlled under a supply management system. This system is designed to create harmony between predicted supply and predicted demand for dairy products- through this system, each farmer’s license contains a quota for the amount of dairy they can produce.
While initially created to stabilize the income of farmers following decades of oversupply, and therefore low prices, in recent years the system has come under fire as many Canadians are struggling to pay their bills amid 40-year high food inflation.
Making Headlines…
India’s Adani scraps $2.5B share sale after fraud claims
  • Indian conglomerate Adani Enterprises called off its $2.5 billion share offering after it lost tens of billions of dollars in market value due to fraud claims by a U.S.-based short-selling firm. (Full Story)
U.S. layoffs surged in January as tech slashed thousands of jobs
  • Layoffs in the United States hit a more than two-year high in January as technology firms cut jobs at the second-highest pace on record to brace for a possible recession, a report showed on Thursday. (Full Story)
ChatGPT may be the fastest-growing consumer app in internet history
  • The OpenAI-owned chatbot has surpassed 100 million MAUs just over two months after its launch — comfortably beating the growth speeds of major apps like TikTok and Instagram, according to the UBS note, which Insider has viewed. (Full Story)
Meta’s Stock Market Rebound to Surpass $200 Billion in Value
  • A spectacular turnaround in Meta Platforms Inc.’s stock is bringing back flashes of Big Tech heydays. (Full Story)
Chart of the Day: US consumers had begun to spend less by the end of 2022.
“Your attitude, not your aptitude, will determine your altitude.”
– Zig Ziglar