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  • πŸ“‰ Big Rally. Bigger Inflation.

πŸ“‰ Big Rally. Bigger Inflation.

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β˜•οΈ GM Munchers! I thought I was playing with fire when I told my wife I was skipping our anniversary dinner to watch a Fed announcement. Then the market just nearly hit an all-time high during an active war and I realized I have no idea what risk actually looks like.

On today’s menu:

  • πŸš€ Green Everywhere. But We’re On Thin Ice.

  • πŸ“Š Inflation Is Back. Don't Let The Grade Fool You.

  • πŸ€– NVIDIA is on a 10-Day Winning Streak

  • πŸ‘Ÿ Tim Cook Just Bought $1 Million Of This Stock

  • πŸ‘€ The SEC Has A New Rule For Traders

Yesterday’s numbers:

S&P 500

6,967

+1.18%

Nasdaq

23,639

+1.96%

Dow Jones

48,535

+0.66%

Bitcoin

$74,378

-0.09%

BREAKING NEWS

πŸš€ Green Everywhere. But We’re On Thin Ice.

My portfolio is starting to feel like Rocky Balboa. No amount of market turmoil can put it down. The S&P 500 is now just 1% away from a new all-time high, and it got there in the middle of an active war, a naval blockade, and inflation at its highest level in two years.

Crazy is putting it lightly.

The rally is real, but so is everything stacked against it:

  • The war with Iran is not over, and negotiations have so far failed.

  • Oil is sitting at $93, with the Strait of Hormuz, which carries 20% of the world's oil supply, still under blockade.

  • Inflation just ripped to 3.3% in March, up from 2.4% in February, driven by a 21.2% monthly spike in gas prices. That is the largest one-month jump at the pump since 1967.

  • The Fed cannot cut rates, and some officials are now openly discussing a potential hike.

  • Consumer confidence just hit a record low, and Citadel CEO Ken Griffin warned this week that a recession is unavoidable if the Strait stays shut for 6 to 12 months.

  • Oxford Economics is forecasting inflation to climb further to 3.6% in April and May.

The market is pricing in a resolution that does not exist yet.

The Munch Take: The market is not stupid. It’s betting that the war ends, oil falls, and the Fed gets room to move. That trade might be right. But it’s being made on hope, not data. That means we think this rally is a delicate one that could turn on a single bad headline. Regardless, I’ll still be listening to Eye Of The Tiger today.

πŸ“Š Inflation Is Back. Don't Let The Grade Fool You.

Wall Street woke up yesterday morning expecting a disaster and got something slightly less disastrous. The March Producer Price Index, which measures what businesses pay before costs hit your wallet, came in at 4.0% annually. That is the highest wholesale inflation reading since February 2023. The market had braced for 4.6%, so the collective reaction was relief.

It shouldn't be.

This is the calculus test situation. My parents knew I was going to fail. I came home with a D. I still did not know any calculus. The number was better than feared. The underlying reality did not change.

Here is what the PPI actually showed:

  • Gasoline prices jumped 15.7% in a single month, accounting for nearly half the entire PPI increase.

  • Diesel surged 42%. Jet fuel was up 30.7%. Everything that moves goods across this country costs more.

  • The BLS collected this data on March 10. That was just two weeks into the war. The full damage had not even hit yet.

  • Bank of America now expects the Fed's preferred inflation gauge, PCE, to come in at 3.5% for March when it drops on April 30th.

  • Markets are pricing roughly a 1-in-4 chance of any rate cut through December.

The report was better than expected because the war had barely started when they took the snapshot. April's numbers will be uglier.

The Munch Take: The headlines today read "PPI comes in cooler than expected" and technically that is true. It is also true that 4.0% wholesale inflation, driven by energy costs that had barely peaked when the data was collected, is not a good report. It is a preview. My wife looked at gas prices last week and said "this doesn't seem right." She is not an economist. She is correct.

AI’s Next Phase Isn’t in Big Tech (Ad)

Most investors are still chasing Nvidia, but Wall Street jumped overboard a while ago.

AI has shifted from narrative to capital spending β€” and the real money is moving into infrastructure: networking, power, cooling, and deployment.

We break down 5 under-the-radar AI stocks positioned for the next phase of the boom.

Here’s how you position before the rotation becomes obvious.

MARKET OVERVIEW

🍿 Tasty Movers & Shakers

πŸ€– $NVDA is on a 10-day winning streak, up 18% over the stretch. The king is back.

🟒 The rest of the Mag 7 finished green across the board. Every name except $AAPL, which apparently did not get the memo. Investors are betting big on earnings season and the AI infrastructure buildout that shows no signs of slowing down.

πŸ›°οΈ $GSAT Globalstar popped 9.63% after Amazon announced it is acquiring the satellite maker in an $11.57 billion deal. Amazon is planting its flag directly in Elon Musk's backyard.

πŸ’Š $TVTX Travere Therapeutics ripped 37.23% after the FDA approved its drug Filspari to treat not one but two kidney diseases. One approval is a good day. Two is a different conversation entirely.

πŸ’» $DELL got a brief sugar rush on rumors that $NVDA was looking to acquire it, then shed 2.78% after Nvidia came out and denied the reports. The market giveth. Nvidia taketh away.

πŸš— $KMX CarMax face-planted 15.12% after posting rough earnings and halting its share buyback program. Used car prices were supposed to be normalizing. CarMax did not normalize.

STOCK OF THE DAY

πŸ‘Ÿ Tim Cook Just Bought $1 Million Of The Worst Stock In The Dow

When the CEO of $AAPL spends $1 million of his own money on your stock, people notice.

Tim Cook filed a Form 4 with the SEC on April 14, disclosing he purchased 25,000 shares of $NKE at $42.43 per share on April 10. Nike's own President and CEO Elliott Hill filed the same day, buying 23,660 shares at $42.27.

Two insiders. Same day. Both buying. That is not a coincidence.

To understand why this is interesting, you need to understand just how badly $NKE has been destroyed:

  • The stock hit an all-time high of $179 in November 2021. It now trades around $44. That is a 75% collapse.

  • It fell 30% in 2022, 7% in 2023, and another 30% in 2024.

  • China sales are down 17% year over year.

  • Direct-to-consumer revenue is falling.

  • The CEO has described the turnaround as being in "the middle innings." That is a polite way of saying it is not over yet.

The Munch Take: When two executives spend their own money buying a stock that has lost 75% of its value, it is either a contrarian signal worth watching or a very expensive mistake. We’re not touching this one with a ten foot poll.

TRADING SUCCESS

πŸ€‘ Wednesday Motivation

πŸͺ Munchy Memes

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