META Sellers??? Uncle Warren Exiting BofA?

Subscriber Data Trackers and More Trump Tariffs Inbound

Well after 20 straight trading days higher, META has finally had a losing day! META dropped 2.76% losing $20.30 or giving back what it gained in the prior week. When we look at the weekly chart, today’s selling is just a small bump in the road compared to this epic bull run:

The daily chart gives us a better idea of where the sellers targets are now, you risk new highs for a run to $680 and then $640:

Look this has come a very long way, we can see the fresh buyers coming in at that $638 level and pushing this thing to new highs. Now we are most likely seeing our first round of real sellers stepping in. We like this area and the risk is honestly to new highs, so seller looking for a 2x to 3x payoff, risking 25 points to make 50 or 75 points in our opinion…

We also know that Warren Buffett continues to unwind his stake in Bank of America cutting it down below 9% dropping his stake down by 31% in just 6 months. No doubt he sees better valuations somewhere else, most likely in cash for now until things cheapen up, but most certainly this adds to the bearish case for overall record valuations around.

We have the FOMC Minutes tomorrow at 2pm Est. so be careful at that time position wise, sometimes these things can move the markets. Although the pausing FOMC right now isn’t much of a surprise given the inflation numbers of late. We aren’t surprised by the inflation numbers, honestly, for 27 years now the annualized inflation rate has been 3% a full 50% above the FOMCs stated 2% mandate. We know that, we know they know that and they know we know that!!! This is why we will continue to believe that rates will continue to trend lower this year, especially once the trade wars start to heat up as Trump commits to his America First policy and enacts more and more tariffs.

Speaking of validating this 3% inflation here is a chart from Statista, right where its been on an annualized basis for the last 3 decades: