
This Week on Trends with Friends (January 12, 2025)
Welcome Friends,
Here’s an assortment of posts shared this week on Trends with Friends. Let’s dive in…
THIS WEEK IN AI
Michael Parkeh reviews Nvidia’s latest Keynote, AI at CES, OpenAI and China / US relations and more in this week’s AI Summary.
LARRY’S WISHLIST
Larry Thompson is still waiting for his “Christmas Wish.” He writes,
December 21st Thesis – Healthy Bull Markets invite their friends to the party, we want to see broad participation in the uptrend. Yes, the market can rise even when the “friends” aren’t at the party, but that’s the exception, not the rule. And betting on exceptions may work occasionally, but over time, it’s a losing strategy. I’d rather place my money where the odds align with the rules, not the exceptions.
Using a simple percentage of stocks above a 20-day moving average, you can see the damage that’s been done to the “Market of Stocks.” For me to participate in this POTENTIAL Santa Claus Rally, I would like to see this metric get back above 30%.
Yes, I may be a little late to the rally, but I’d enjoy the party a lot more with some friends.
January 11th Update – We’ve seen some improvement in breadth, but let’s be honest, it didn’t have much room to go anywhere but up. What we need now is for breadth to make a higher low and sustain above 30%. So far, that hasn’t happened, and I’m perfectly fine sitting in cash until it does.
BURROUGH EIGHT COLUMN PORTABLE ADDING MACHINE
Ted Merz shares a great piece on the Burroughs Eight Column Portable Adding Machine. Merz mentions,
The Burroughs Eight Column Portable Adding Machine was passed down to me from my father who inherited it from his mother who used it to tally bowling scores in the 1930s.
Her father used it when he worked as the Assistant Postmaster for the city of Newark in the early 1900s.
The adding machine does pretty much what you would expect: You type in numbers, pull a crank and it tallies the result. A big innovation was that it also printed it out. It weighs about 23 pounds.
I keep this family heirloom next to my desk to remind me how product innovation can change the world overnight, persist for generations and then be replaced in an historical heartbeat.
The business story feels as modern as a Silicon Valley start-up.
In the early 1880s, William Seward Burroughs was a junior bank teller frustrated by the mindless repetition of adding numbers. He left the bank for a machine shop to work on a solution.
Investors put up $700 for 14 shares in a seemingly crazy idea. A few years later the company was incorporated with 1,000 shares and a market value of $100,000. Burroughs had a prototype, but no product, no patent and two young children to feed.
SATURDAY LINKFEST
Tadas Viskanta curated his Saturday linkfest centered on “Addictive Qualities.” Here’s a sneak peek…
TRENDS WITH NO FRIENDS
Trends With No Friends sifts through the noise and discovers stocks above $1B market cap with high relative strength and low social following.
The publication shares 52-Week Highs and Lows sorted by followers on Stocktwits.
Why is high relative strength and low social following important?
Stocks that are outperforming tend to continue to outperform. Stocks that have a low social following are, by definition, undiscovered by the crowd. Stocks that have both Relative Strength and Low Social Following can really outperform as more investors discover them.
This week, Trends with No Friends featured…
Elbit Systems ($ESLT), Advanced Energy Industries ($AEIS), Similarweb ($SMWB), MINISO Group Holding ($MNSO) and more.
THIS WEEK’S EPISODE
And in case you missed it… Howard Lindzon, Michael Parekh, Phil Pearlman and JC Parets are joined by Packy McCormick to discuss Fartcoin, Nvidia and the Wild West of Investments in the latest episode of Trends with Friends.
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