This Week on Trends with Friends (January 26, 2025)

This Week on Trends with Friends (January 26, 2025)

Welcome Friends, 

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

YOU MUST BE EVERYWHERE

Howard Lindzon breaks down why You Must Be Everywhere in 2025… Here’s the money quote, 

There are THREE other massive shifts in technology that will fuel a shift back to ‘open’ over ‘closed’ for those that want to be/go ‘everywhere’.

The first is email. The old pipes of email are still better than the new pipes of social which are now owned by the overlords. The second is AI and the third arrived this weekend…’the internet of money.’

While I groan about the $TRUMP memecoin grift – he knew it would lead to nonsense like this below’, if you look beyond/beneath it you will see the tectonic shift in rails, money and distribution that is open to just about everyone.

At least $80 billion in $TRUMP coin/money was created, distributed and traded without a bank, brokers or an exchange.

If you did not know what the ‘internet of money’ was …now you know!

Read Lindzon’s latest here.

THIS WEEK IN AI

Michael Parekh reviews Stargate, OpenAI’s software coding foray, Microsoft // Google’s pricing update, TikTok and more in this week’s AI Summary.

It’s a must read.

FOLLOW THROUGH COMING SOON?

Larry Thompson wants to see follow through. The market technician mentions, 

Earnings season has kicked off, and so far, we’ve seen positive reactions, with the S&P 500 climbing to all-time highs on Thursday.

However, there was no follow-through on Friday, as the market waits for earnings from the heavy hitters.

The Magnificent 7, the names driving this market, begin reporting Q4 earnings next week. With five of the seven set to report, representing a massive 22% of the S&P 500, it’s not something you can ignore.

One of the great advantages of today’s market is the access we have to ETFs and other investment products. $MAGS is an ETF that holds all seven of these names equally, offering not only a unique way to gain exposure but also giving technicians an excellent tool to evaluate price action.

Looking at the chart, we see a strong long-term and intermediate-term uptrend, supported by price being above both a rising 50-day and 200-day moving average. The primary trend is up, so with scenario analysis in mind, remember: these stocks are innocent until proven guilty.

However, the shorter-term trend is not as pretty and has been underperforming the S&P 500 to start the year.

We’re seeing a down channel, marked by lower highs and lower lows, playing PEEK A BOO but this PEEK A BOO needs FOLLOW THROUGH before it turns into a game of WHACK A MOLE.

See Larry’s latest here.

THIS WEEK IN CHARTS

Charlie Bilello curated the most important charts and themes in the market this week. He writes, 

1) Why a Fed Pause is Coming

The US inflation rate continued its upward climb in December, with overall CPI rising to 2.9%.

That was the highest reading since last July, moving again in the opposite direction of the Fed’s 2% target. Since January 2020, CPI has increased at a rate of 4.2% per year, with the gap between actual inflation and the 2% trendline continuing to widen.

Core CPI, which excludes the more volatile Food and Energy categories, increased 3.25%. That was the 44th consecutive month above 3%, the longest period of elevated inflation in the US since the early 1990s.

The Nasdaq 100 has closed above its 200-day moving average for 466 consecutive trading days, the 2nd longest uptrend in its history. The index has gained 88% during this incredibly smooth run.

REWRITING SOFTWARE DEVELOPMENT

Om Malik explores the AI tools rewriting software development. He shares, 

The shift to AI has gotten me back into tinkering mode. A friend pushed me into using Cursor early, and I am using it all the time—not to write apps or create software, but to figure out how things work.

Cursor is an AI-enhanced development environment, part of a new category of AI-augmented development tools that differ from traditional terminal emulators or standard integrated development environments (IDEs). The company has grown rapidly, reaching nearly $100 million in annual recurring revenue (ARR) since its inception in 2023. While Cursor isn’t alone in this space – V0 from Vercel is another example – it’s the one I personally use.

It reminds me of using a browser in the 1990s, finding a website I liked, and right-clicking on the page to see the source code. That allowed me to figure out how everything worked. I can talk to Cursor in English. Now I can use it to create specialized one-off pieces of software. I don’t want to write software for a living, but I also don’t want to be ignorant about the world around me.

MONEYBALL

Ted Merz tells a tale of how his father played Moneyball before Moneyball. Merz mentions, 

Moneyball — for those unfamiliar with baseball — refers to the Michael Lewis book about Billy Beane, an executive with the Oakland Athletics who used statistics to select top players.

Dad did something similar, but for the Little League teams he coached during the 1980s.

He would methodically clip articles from the local paper and jot down players who were highlighted. By the end of the season, he had a list and was ready for the next draft.

It was a huge competitive advantage because everyone else selected players based on “scores” assigned during single-day tryouts before the season.

The tryouts were miserable, the worst part of Little League. They were held on a Saturday in March when it was often still freezing in New Jersey. Gripping the bat or catching a ball was painful.

Dad’s insight was that it was better to assess a player based on the entire previous season rather than a score assigned on a random cold day in the Spring.

The trick was that it took more work. It was doing the work that gave him the advantage.

Youth sports have become more competitive these days, but back then they were coached by parents and I doubt many developed a system to draft 10 year olds.

Dad’s system paid off with winning teams.

It also provided him some amusement on those occasions when he would confidently draft a player who had scored low in the tryouts, baffling the other coaches.

Billy Beane would have been proud.

Read Ted’s full post here.

SUNDAY LINKS

Tadas Viskanta curated links on Slot-Machine Gimmicks. Here’s a sneak peek…  

BEST OF STOCKTWITS

📺 Fed Drama, Pelosi’s Trades, and Blockchain That Works ft. Adeniyi Abiodun of SUI

📺 Hot Stocks Today: $SOFI, $PSIL, and $BABA

📰 From FOMO To ‘Oh No’

📰 Stocktwits Chart Art: January 24, 2025

📰Bulls $SPY Another New High

Want more? Subscribe with one-click.

The Daily Rip + The Litepaper + Chart Art

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… 

OSIS Systems ($OSIS), Solaris Energy Infrastructure ($SEI), BrightSpring Health Service ($BTSG) and more.

THIS WEEK’S EPISODE

And in case you missed it… Howard Lindzon, Michael Parekh and Phil Pearlman are joined by Ariel Siedman to discuss decentralized mapping, navigating Web3, the TikTok saga, memecoin and more on the latest episode of Trends with Friends. 

Tune in today.

GET IN TOUCH

If you share insight on the market and would like to contribute to Trends with Friends, send us an email.

Disclaimer: All opinions expressed on this show are solely the opinions of the hosts’ and guests’ and do not reflect the opinions of Stocktwits, Inc. or its affiliates. The hosts are not SEC or FINRA registered advisors or professionals. The content of this show is for educational and entertainment purposes only. Please consult with your financial advisor before making any investment decision.

Stocktwits, Inc. (“Stocktwits”) operates the stocktwits.com website and Stocktwits mobile device applications (the “Apps”). Stocktwits is not a securities broker-dealer, investment adviser, or any other type of financial professional. No content on the Stocktwits platform should be considered an offer, solicitation of an offer, or advice to buy or sell securities or any other type of investment or financial product. Read the full terms & conditions here. 🔍





Want the latest?

Sign up for our weekly newsletter