The Federal Reserve indicated growth is still far below pre-pandemic levels and they believe we need a vaccine or other solution to reverse this trend. The Fed is keeping the pedal to the metal with open market operations and trying to boost inflation at any cost. Inflation looks bleak, alternative assets to fiat currency such as Gold and other precious metals have reach all time highs as investors are fearful of currency depreciation and holding worthless paper. These concerns seem valid as the US Treasury tries to print their way out of a recession and is servicing debt by issuing more debt. The cycle will take some time to play out, but remain cautious because no economic text book knows what comes next.
We mentioned two stocks that investors have intensely speculated and some interesting metrics about short sellers that may help with finding a trend. Based on the metrics we talk about and the parabolic share price performances, its hard to see the run in each stock continue.
Data sources: IBKR SLB Tool, Koyfin.com, Fed.gov