By Jeffrey Cohen, Investment Advisor Representative
US Advanced Computing Infrastructure, Inc.
​June 30, 2022

We noticed a few things this morning:
1. New lows are outweighing new highs again, both in US Equities and US Fixed Income. This is a key indicator for us on the breadth of the decline in stocks. Don't catch falling knives. 

2.  Interest rates are falling today, into the end of the quarter. We think this may be window dressing, and may not last. The FED is raising rates, right?

3. We discuss, again, our logic for betting against Lakeland Financial $LKFN and Bank of Hawaii $BOH. We go to the 10-Qs. What we didn't realize is how poorly they treat their depositors! These companies are not very kind to their depositors financially. You will see it in the videos. We also show how much money they lost in Q1 and likely the same thing happens in Q2, but you won't see it in the income statement or net income.  However, those losses show up in the balance sheet and banks trade at a multiple of common stock equity.

4. Not surprising is that the US equity futures are red today. What is surprising is how badly the European markets did, and the Japanese Nikkei. They surpassed the US Equities market performance yesterday. The tail is wagging much harder than the dog today.

Good luck to all.
​Jeff

By: Jeffrey Cohen, Investment Advisor Representative
US Advanced Computing Infrastructure, Inc.

We made our morning video which pointed to US equities being weaker, despite US equity futures indicating an UP or Green open.

As we checked our key industry sector indices, they were pointing to a declining market. However, the indices themselves (S&P 500, Nasdaq 100 and Russell 2000) were higher. This is a disconnect. We checked $TNA and $TZA, which allow traders to bet 3x on the direction of the market in the short-term. TZA (bear) was up, while TNA (bull) was down, despite the $SPY being up.

So, we move to our stocks. Just the four we have a position in, and a few others on our buy list.

Broken market, broken arrow, red dawn, Wolverine, OMG, Honey who shrunk the kids, operation RED SQUARE, and Great Scott!

We see fewer shares offered for purchase and sale at the top of the book (thin markets). We see larger spreads in price between best bid and ask. We see signs of liquidity weakness in downtrodden stocks. We see low volumes being traded. 



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By: Jeffrey Cohen, Investment Advisor Representative
US Advanced Computing Infrastructure, Inc.
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