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Morning Reads

Open Interest Changes

PREMIUM

Prepper

Bitcoin has been on a tear this year, prompting questions about what kind of crypto exposure should be pursued as an investment strategy. What is your stance on the sector?

· Negative (wouldn't touch with a ten-foot pole)
· Dipping in (risky but important to diversify)
· Not sure (focused on investments elsewhere)
· Big opportunity (lots of money to be made)

Take the survey here and don't forget to share your thoughts in the WSB comments section.

End of winter

There had been some debate over the past few seasons, but pretty much everyone can now agree that the crypto winter is finally over. Bitcoin (BTC-USD), along with other major cryptocurrencies, have all seen a big recovery since the end of October, coming out of a deep freeze that took place over much of the past two years. Things have not only defrosted, but have heated up the engines in recent weeks as splashy headlines and new developments prompt the industry to shout, "Back to the moon!"

Fasten your seatbelts: Bitcoin is up nearly 30% over the past week and more than 150% over the past six months. It's currently trading at $65,000, as the crypto closes in on its all-time high of around $69,000 set in November 2021. The strong advance comes along with strong risk-on sentiment in the broader market, though there are multiple drivers specific to the industry that have also sparked a rally in crypto stocks.

First and foremost among the catalysts has been the launch of spot Bitcoin ETFs and the subsequent cash inflows from Wall Street and the retail crowd. BlackRock's iShares Bitcoin Trust (IBIT) has even amassed $10B in under two months, marking the fastest any new ETF has ever hit such a milestone. The launches have helped cement crypto as an established asset class, giving an avenue to those waiting to use a mainstream vehicle to hedge and diversify, or invest in the sector. It's also created robust demand for those hunting for digital gold, helping push the price of Bitcoin (BTC-USD) higher and higher.

On the supply side: "Bitcoin is scheduled to undergo its fourth halving in April, one of the most anticipated events of 2024 within the crypto space," SA analyst Nicholas Kitonyi writes in a new article. "Halving is a process where Bitcoin mining is cut in half, reducing the number of new bitcoins released to the market... and was introduced to ensure BTC remains scarce. Investors have often targeted the period before the next Bitcoin halving to acquire more bitcoins in anticipation of a post-halving rally." Take the WSB survey. (44 comments)

Crude awakening?

As widely expected, OPEC+ has decided to extend cutbacks in oil production through the first half of the year to support prices by warding off a surplus. Curbs of 2.2M barrels a day will remain until the end of June, with Saudi Arabia making up half of the promised cuts to output. "Sticking to voluntary production cuts until the end of the year would be a strong signal and should be seen as price-positive," according to Commerzbank analyst Carsten Fritsch, although an extension only into Q2 likely has been priced in and should not move prices significantly. (70 comments)

Buyout bid

An investor group bidding to acquire Macy’s (M) has raised its offer by about $1B after the department store chain rejected a prior proposal as too low. Arkhouse Management and Brigade Capital offered to buy shares they don’t already own for $24 each, or $6.6B in total, which is 33% higher than Macy's closing price on Friday. The stock jumped 16% in response in premarket trading on Monday, while the company's board said it will "carefully review" the latest offer in consultation with financial and legal advisors. SA analyst Young Investor Analytics previously flagged potential challenges that Arkhouse and Brigade may face in closing the deal. (47 comments)

Record run

The S&P 500 (SP500) is enjoying a strong run to start the year, a big thanks to artificial intelligence. See the largest contributors and detractors here. Speaking of the benchmark index, Super Micro Computer (SMCI) and Deckers Outdoor (DECK) will be added to the S&P 500 as part of the latest quarterly rebalancing, replacing Whirlpool (WHR) and Zions Bancorporation (ZION). "The changes ensure each index is more representative of its market capitalization range," S&P Dow Jones Indices said in a statement. (20 comments)

Today's Markets

In Asia, Japan +0.5%. Hong Kong flat. China +0.4%. India +0.1%.
In Europe, at midday, London -0.5%. Paris +0.1%. Frankfurt -0.1%.
Futures at 7:00, Dow -0.2%. S&P -0.1%. Nasdaq flat. Crude -0.6% to $79.53. Gold -0.2% to $2,091.70. Bitcoin +5.4% to $65,207.
Ten-year Treasury Yield +3 bps to 4.21%.

Today's Economic Calendar

Auto Sales
11:00 Fed's Harker: "Economic Impact of Higher Education"

Companies reporting earnings today »

What else is happening...

AI battle: Is Google (GOOGGOOGL) in danger of being replaced?

The $1T club could soon have its first non-tech members.

Boeing (BA) is in talks to acquire Spirit AeroSystems (SPR).

Bayer wins Arkansas Roundup trial; Delaware suit ends without verdict.

Japan's Nikkei tops 40,000 for the first time as historic rally continues.

Crafts retailer Joann (JOAN) said to be considering bankruptcy filing.

Texas wildfire: Homeowner blames Xcel Energy (XEL) unit's power line.

Troubled EV maker Fisker (FSRin talks with Nissan (OTCPK:NSANY).

Bright spots in CRE space: logistics, data centers, telecom towers.

‘Dune 2’ (WBD) scores the biggest box-office debut of the year.

Here are the stocks with the most insider buying and selling.


Known to most as Uranium Pinto Beans, Jason has more than 15 years under his belt of trading stocks, options and currencies. His expertise primarily lies in chart analysis, and he has a strong eye for undervalued stock. Because he’s got the ability to identify great risk/reward trades he usually enjoys taking the path less traveled and reaping the benefits from the adventure.

He is a co-founder of Option Millionaires, and he is best known for his weekly webinars with Scott, as well as his high level training webinars and charts found in the forums.

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