Welcome Friends, 

Here’s an assortment of posts shared this week on Trends with Friends. Let’s dive in…

COMPLACENCY IS A BUG… VOLATILITY IS A FEATURE

On Saturday, Howard Lindzon shared his thoughts on the recent uptick in equity volatility, Complacency Is A Bug…Volatility Is A Feature. 

Here’s the money quote,

I like to say if you are going to panic, panic first. To panic first you need to be raising some cash when the $VIX is 12. You panic a bit when leading indexes are 20-30 percent above their long-term moving averages. It is hard to do this because stocks are going up and breakouts are a plenty. The markets do not care how you feel. Complacency is a bug in humans. Volatility is a market feature that squashes human complacency.

Read Lindzon’s full post here.

THIS WEEK IN AI

Michael Parekh previews Google’s acqui-hires, Meta’s celebrity chatbots, Apple Intelligence and easing regulations on Open Source AI in this week’s AI Summary. 

It’s a must read.

IT’S LIKE A BRICK WALL

JC Parets posted about the Brick Wall of multi-decade overhead resistance writing, 

Here’s brick wall #1 – which is the Japanese Nikkei Average finally getting back to those former bubble highs from 1989.

Say what you want about the market not having memory going back 35 years, but the market is literally proving to you that it does.

It took Japanese Stocks 35 years to get back here. And they’re failing to get through:

Meanwhile (and maybe just a coincidence?) This is happening at a time that the Nasdaq100 is trying to get back above its March 2000 Dot Com Bubble Highs relative to the DJ Industrial Average – and it’s failing.

As we discussed in yesterday’s note, this action is also taking place when the Tech sector starting to lose strength vs the broad markets, also from the same place this happened in March 2000.

See Parets’ full post here.

REVOLUTIONS ARE INFINITE

Phil Pearlman resurrected his PrimeCuts Newsletter sharing Revolutions Are Infinite. 

Phil posts, 

Revolutions are infinite and we are all adaptive animals. We can change our stories. We can change how we feel and think. We can change who we are.

Subscribe with one-click to receive posts on simplicity, transformation, wisdom, personal health, human behavior, and creativity.

PAYING ON TIME

This week, Ted Merz talks how Bloomberg overcame the challenge of getting customers to pay their bills on time. 

Merz mentioned, 

One of the management traits that is underappreciated about Mike Bloomberg and which I think explains a lot of his company’s success is his willingness to consider unconventional solutions to everyday problems. 

He particularly favors ideas that leverage social gravity rather than adding headcount. 

In this case, he pressed some of the senior people at the firm: “What would we do if we couldn’t add people? How would we solve this?”

The answer he came up with was to turn off clients who didn’t pay on time. 

It’s the way the telephone company would respond. But most software companies are reluctant to do that. They don’t want to see subscribers drop or cause friction with clients. 

Bloomberg started alerting terminal users who were behind on payments that the service would be shut off on a certain day. 

“That instantly changed the dynamic.”

SATURDAY LINKS: BEING PRESENT

Tadas Viskanta curated a plethora of links on Being Present. Here’s a sneak peek. 

TRENDS WITH NO FRIENDS

Trends With No Friends sifts through the noise and discovers stocks above $1B market cap with high relative strength and low social following.

The publication shares 52-Week Highs and Lows sorted by followers on Stocktwits. 

Why is high relative strength and low social following important?

Stocks that are outperforming tend to continue to outperform. Stocks that have a low social following are, by definition, undiscovered by the crowd. Stocks that have both Relative Strength and Low Social Following can really outperform as more investors discover them.

This week, Trends with No Friends featured… 

Clearwater Analytics ($CWAN), CSW Industrials ($CSWI), Commvault Systems ($CVLT), Affiliated Managers Group ($AMG), Erie Indemnity ($ERIE) and more.

THIS WEEK’S EPISODE

And in case you missed it… This week, Howard Lindzon, Phil Pearlman, JC Parets, Michael Parekh and Riley Rosebee review Bitcoin’s potential breakout, biotech’s resurgence, the shifting landscape of global markets and more in the latest episode of Trends with Friends.

Tune in today.

GET IN TOUCH

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