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What is a Tape Bomb?

Having a sound understanding of the stock market can often feel out of reach. Sometimes the market follows a predictable pattern and appears to make sense,…

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Having a sound understanding of the stock market can often feel out of reach. Sometimes the market follows a predictable pattern and appears to make sense, while other times it is volatile for no clear reason.

More often than not, stock prices are affected by a number of events and factors, some of which weigh on stock prices indirectly and others that do so directly. These factors can cause minor market volatility or a major stock market crash.

We’re going to look at a few of those factors below and focus on one that you’re probably not aware of… tape bombs.

Tape Bomb Meaning

The term “tape bomb” presumably traces its origin to the 19th and early 20th centuries, when ticker tapes were used to relay to stock traders around the world the stock symbol and the latest volume and price on shares as they are traded.

A tape bomb is basically an unexpected bad news event that has been pretty prevalent lately and has or will move financial markets.

These events occur unexpectedly and as a result, traders may be caught off guard. Traders often react by exiting the market or adjusting their trades, causing a significant trend reversal or swing. Sometimes, tape bombs can occur in the form of a black swan event.

A black swan is an extremely rare and difficult-to-predict event that has a huge impact on the market.

Examples of black swan events include the terrorist attacks of 9/11, the 2008 global financial crisis, and the Covid-19 pandemic of 2020. Such events can be difficult to navigate since it is not easy to distinguish short-term fear from the long-term correction that often follows.

What causes tape bombs?

Tape bombs come in all shapes and sizes and vary significantly in their actual effect on stocks. Let’s take a look at a few things that can trigger a tape bomb in the stock market.

Bad earnings surprise

The earnings season is one of the most common instigators of tape bombs. Every three months, publicly traded companies are required to file their financial results with the U.S. Securities and Exchange Commission (SEC).

Traders usually watch with close attention as each earnings season kicks off to avoid missing out on any trading opportunity.

If a major company reports better-than-expected results, the stock tends to go up and can also push other stocks higher.

On the other hand, if a company posts a surprisingly poor earnings report, its stock could slump and also bring other stocks down with it. Changes in a company’s guidance following the earnings report can also affect the stock price.

For example, shares of Walmart and other major retailers were recently hit hard after the company reported worse-than-expected earnings for its fiscal first quarter. The company blamed the disappointing earnings on rising operating costs.

Walmart shares lost 19.5% in the week ended May 20, a massive slump for a stock that is often less volatile than the broader market. The earnings report also sparked a sell-off of other U.S. retailers and consumer-oriented stocks such as Target (TGT), Costco (COST), and Dollar General (DLTR).

Geopolitical flare-ups

International events can also have a dramatic effect on stock prices. News of war, terrorism, boycotts, embargoes, or tariffs might significantly weigh on stock prices.

For example, the Dow Jones Industrial Average lost 684 points in the wake of the Sept. 11, 2001 terror attacks.

Another good example is when former President Donald Trump launched a major trade war with China in 2018 by imposing tariffs on imports of Chinese steel and aluminum.

Trump initiated the trade war to pressure China to make major changes to aspects of its economic system that promote unfair trade practices, including subsidies to state-owned enterprises, forced technology transfer, intellectual property theft, and limited market access.

Unfortunately, the effects of the trade war went beyond economics.

According to research by economists from Columbia University and the Federal Reserve Bank of New York, Wall Street companies lost at least $1.7 trillion in the value of their stocks because of increased tariffs on Chinese imports to the U.S.

Unexpected FDA rejections

Pharmaceutical and biotechnology stocks fall under a category of companies that are heavily regulated by government agencies, particularly the Food and Drug Administration.

FDA announcements to approve, reject, or halt the development of products made by these companies are usually high-profile events that can affect the price of a stock.

Traders love healthcare and biotech stocks because of their huge price moves, which often happens when a company makes progress or faces problems with its development products like devices and drugs.

Results from a stage 1,2, and 3 clinical trial, and FDA approval can send healthcare and biotech stocks soaring. FDA approval is an important event that tends to excite the market immediately.

On the other hand, if the FDA unexpectedly rejects or halts the development of a drug, shares of that company can fall sharply.

SEC investigations

The mission of the U.S. Securities and Exchange Commission (SEC) is to promote investor protection, capital formation, and competition. This regulator has broad investigative powers that make it a powerful adversary for any company under investigation.

If a company comes under the scrutiny of the SEC, this can cause fear and panic among shareholders and the management.

According to a study conducted by the U.S. Chamber of Commerce, an SEC investigation usually imposes $4.6 million in average direct costs.

Even when the regulator determines no wrongdoing, a company can suffer huge financial costs, with some probes running well over $100 million.

In recent months, the SEC has been cracking down on companies that listed their stocks via SPAC deals instead of using the traditional IPO route.

Shares of Lucid Group (LCID), Canoo (GOEV), Lordstown Motors (RIDE), Electric Last Mile Solutions (ELMS), and Digital World Acquisition Corp (DWAC) have all come under pressure amid a string of SEC probes.

Bottom Line

As we’ve discussed, tape bombs are events that happen out of the blue such as the threat of debt default by an indebted nation, a sudden geopolitical flare-up, or a terrorist attack.

Regardless of your trading strategy, learning to trade such events is an important skill needed to succeed. One should be able to evaluate the impact of tape bombs on stocks.

Keeping hard stops is a good way to prevent unnecessary losses in the rare event a tape bomb hits the stock you are in.

The post What is a Tape Bomb? appeared first on Warrior Trading.

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Nonprofit Blood Donation Service Starts Matching Unvaccinated Patients With Donors

Nonprofit Blood Donation Service Starts Matching Unvaccinated Patients With Donors

Authored by Allan Stein via The Epoch Times (emphasis ours),

Swiss…

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Nonprofit Blood Donation Service Starts Matching Unvaccinated Patients With Donors

Authored by Allan Stein via The Epoch Times (emphasis ours),

Swiss naturopathic physician George Della Pietra believes people worldwide should be free to choose whether to get a COVID-19 vaccine injection or not.

He believes the same should hold for those receiving transfusions with “vaccinated” blood.

“The problem is right now we have no choice,” said Della Pietra, founder of the nonprofit Safe Blood Donation service in 2021, matching unvaccinated blood recipients with donors in 65 countries.

“It was very clear from the beginning that the COVID hype was way out of control,” Della Pietra said. “It was not as dangerous as they say it was.

“As a naturopath, I can make no sense of this pandemic, which was never really a pandemic. It leaves space for so many explanations.”

Della Pietra believes that an mRNA injection is more dangerous than the pharmaceutical companies are willing to admit. He said the growing numbers of adverse reactions are reason to question their safety and effectiveness.

Data from the Centers for Disease Control and Prevention (CDC) showed that vaccinated and boosted people made up 58.6 percent (6,512) of the COVID-19 deaths in August—up from 41 percent in January.

We can no longer say this is a pandemic of the unvaccinated,” Cynthia Cox, the Vice President of the Kaiser Family Foundation told The Washington Post in an article on Nov. 23.

Nearly 70 percent of the world’s 8 billion people have received at least one mRNA injection for COVID-19 since the vaccines began rolling out in 2021 at the height of the virus’s spread.

Each of the three primary mRNA COVID-19 vaccines contains COVID-19 “spike protein” fragments, which bind at the cellular level to stimulate an immune response to the virus.

Della Pietra believes these spike proteins produce “classic symptoms”—namely blood clots—that “horrified” him.

“I’ve never seen anything similar—and I’m not talking only about spike proteins,” Della Pietra told The Epoch Times in a phone interview.

It’s unbelievable because we never had this problem before. It’s been only two years. They want to keep the narrative [that an mRNA vaccine] is not dangerous.”

A man looks at his phone while donating blood at Vitalant blood donation center in San Francisco on Jan. 11, 2022. (Justin Sullivan/Getty Images)

Although donated blood and plasma must undergo a cleansing process before transfusion, Safe Blood Donation says this is not enough to remove all mRNA ingredients.

“I’m talking about graphene oxide and non-declared inorganic components in the vaccine, which we can see in the blood. When I see them, I have no idea how we can get rid of them again,” Della Pietra said.

Looking at the abnormalities in vaccinated blood, he said, “OK, we have a problem.” People are receiving the vaccine “more or less through the back door.”

“You can not avoid it anymore.”

In the United States alone, there are approximately 16 million units of donated blood annually. Of those units, about 643,000 are “autologous”—self-donated—and the number is increasing yearly, according to BloodBook.com.

Della Pietra said that, to his knowledge, Safe Blood Donation, based in Switzerland, is the first unvaccinated blood donation service of its kind.

“So, there is no blood bank with mRNA-free blood yet, not even with us,” Safe Blood Donation states on its website.

“And, although we have already asked hundreds of clinics, at the moment—at least in Europe—all of them still refuse to allow the human right of free blood choice with them—or at least do not want to be mentioned because otherwise, they fear reprisals.”

A nurse works as employees donate blood during a blood drive held in a bloodmobile in Los Angeles on March 19, 2020. (Mario Tama/Getty Images)

Della Pietra said the main goal of Safe Blood Donation is not to start an mRNA-free blood bank. Rather, it is to make it possible to match unvaccinated blood donors and unvaccinated recipients, “which we bring together in a clinic (medical partner) that allows the choice of blood donor.”

Medical website Seed Scientific said that blood banks and biotech companies will offer as much as $1,000 monthly for blood donations.

While Della Pietra said there are no unvaccinated blood banks, he sees the demand for unvaccinated blood rising.

This is why I decided to do [SafeBlood Donation]. I wanted to make a network for unvaccinated people looking for a blood donor because they need it—whether they have scheduled surgery or an emergency,” he said.

Safe Blood Donation began working in the United States about a month ago, building an infrastructure of medical partners.

However, in the current medical environment, central blood banks such as the Red Cross do not segregate their blood donations based on their vaccinated or unvaccinated status.

Rendering of SARS-CoV-2 spike proteins binding to ACE2 receptors. (Shutterstock)

“The American Red Cross does not facilitate designated donations for standard blood needs, as this process often takes longer and is more resource intensive than obtaining a blood product through our normal process,” the Red Cross told The Epoch Times in an email.

In a small number of situations, there is an exception for rare blood types where compatible blood types are extremely difficult to find. A rare blood type is defined as one that is present in less than 1/1000 people.

“We want to emphasize that the Red Cross adheres to all donor and product requirements as determined by the FDA to ensure the safety of the blood supply and is committed to continuing to provide life-saving blood products for patients across the country.”

The National Library of Medicine said that “across study sites, the average hospital cost per unit transfused was $155 and the average charge per patient was $219.”

Still, the Red Cross, which provides 40 percent of the nation’s blood donations, said “no studies” demonstrate adverse outcomes from transfusions of blood products collected from vaccinated donors.

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Tyler Durden Sun, 12/04/2022 - 20:55

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Spread & Containment

Pedestrians choose healthy obstacles over boring pavements, study finds

Up to 78% of walkers would take a more challenging route featuring obstacles such as balancing beams, steppingstones and high steps, research has found….

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Up to 78% of walkers would take a more challenging route featuring obstacles such as balancing beams, steppingstones and high steps, research has found. The findings suggest that providing ‘Active Landscape’ routes in urban areas could help tackle an “inactivity pandemic” and improve health outcomes.

Credit: Anna Boldina

Up to 78% of walkers would take a more challenging route featuring obstacles such as balancing beams, steppingstones and high steps, research has found. The findings suggest that providing ‘Active Landscape’ routes in urban areas could help tackle an “inactivity pandemic” and improve health outcomes.

[A copy of the paper and images can be downloaded here]

Millions of people in the UK are failing to meet recommended targets for physical activity. Exercising “on the go” is key to changing this but while walking along a pavement is better than nothing it causes no significant increase in heart rate so only qualifies as mild exercise. Walking also fails to significantly improve balance or bone density, unless it includes jumping, balancing, and stepping down.

But would adults opt for such ‘fun’ routes if given the choice? A University of Cambridge-led study published today in the journal Landscape Research suggests that with the right design, most would.

Previous research on ‘healthy route choices’ has focused on people’s likelihood of walking instead of using transport. But this study examined how likely people are to pick a more challenging route over a conventional one and which design characteristics influenced their choices.

Lead author, Anna Boldina, from the University of Cambridge’s Department of Architecture, said: “Even when the increase in level and extent of activity level is modest, when millions of people are using cityscapes every day, those differences can have a major positive impact on public health.”

“Our findings show that pedestrians can be nudged into a wider range of physical activities through minor changes to the urban landscape. We want to help policy makers and designers to make modifications that will improve physical health and wellbeing.”

Boldina began this research after moving from Coimbra in Portugal – where she found herself climbing hills and ancient walls – to London, which she found far less physically challenging.

Working with Dr Paul Hanel from the Department of Psychology at the University of Essex, and Prof. Koen Steemers from Cambridge, Boldina invited almost 600 UK residents to compare photorealistic images of challenging routes – variously incorporating steppingstones, balancing beams, and high steps – with conventional pavements.

Participants were shown images of challenging and conventional tarmac routes and asked which route they would choose. The researchers tested out a range of encouraging / discouraging parameters in different scenarios, including crossing water, shortcuts, unusual sculptures and the presence / absence of a handrail and other people. Participants were asked to score how challenging they thought the route would be from 1 (as easy as walking on level tarmac) to 7 (I would not be able to do it).

Eighty per cent of the study’s participants opted for a challenging route in at least one of the scenarios, depending on perceived level of difficulty and design characteristics. Where a challenging option was shorter than a conventional route, this increased the likelihood of being chosen by 10%. The presence of handrails achieved a 12% rise.

Importance for health

The WHO and NHS recommend at least 150 minutes of ‘moderate’ or 75 minutes of ‘vigorous’ activity spread over a week, including a variety of activities aimed at enhancing bones, muscles, and agility to stay healthy. In addition, adults over 65 are advised to perform strength, flexibility, and balance exercises.

Boldina said: “The human body is a very complex machine that needs a lot of things to keep working effectively. Cycling and swimming are great for your heart and for your leg muscles but do very little for your bone density.”

“To improve cardiovascular health, bone density and balance all at once, we need to add a wider range of exercises into our routine daily walks.”

Psychology of choice

Co-author Dr Paul Hanel said: “Children don’t need much encouragement to try out a balance beam but we wanted to see how adults would respond, and then identify design modifications which made them more likely to choose a challenging route.”

“We found that while embarrassment, anxiety, caution and peer pressure can put some adults off, the vast majority of people can be persuaded to take a more challenging route by paying careful attention to design, safety, difficulty level, location and signage.”

The proportion of participants who were willing to pick a more challenging route varied from 14% for a particular balance beam route to 78% for a route involving wide, low stepping stones and a log with a handrail. The least intimidating routes were found to be those with wide, steady-looking balancing beams and wide steppingstones, especially with the presence of handrails.

The researchers suggest that routes that incorporate more difficult challenges, such as obstacle courses and narrow balancing beams, should be placed in areas more likely to be frequented by younger users.

The participants expressed a range of reasons for picking challenging routes. Unsurprisingly, the study found that challenging routes which also acted as short cuts appealed. Up to 55% of participants chose such routes. The researchers also found that the design of pavements, lighting and flowerbeds, as well as signage helped to nudge participants to choose more challenging routes. Many participants (40%) said the sight of other people taking a challenging route encouraged them to do the same.

The participants who picked conventional routes often had concerns about safety but the introduction of safety measures, such as handrails, increased uptake of some routes. Handrails next to one steppingstones route increased uptake by 12%.

To test whether tendency to choose challenging routes was linked to demographic and personality factors, participants were asked to answer questions about their age, gender, habits, health, occupation, and personality traits (such as sensation seeking or general anxiety).

The researchers found that people of all levels of activity are equally likely to pick a challenging route. But for the most difficult routes, participants who regularly engaged in strength and balancing exercises were more likely to choose them.

Older participants were as supportive of the concept as younger ones but were less likely to opt for the more challenging routes for themselves. Nevertheless, across all age groups, only a small percentage of participants said they would avoid adventurous options completely.

The study applies the idea of “Choice Architecture” (making good choices easier and less beneficial choices harder) plus “Fun theory”, a strategy whereby physical activity is made more exciting; as well as some of the key principles of persuasion: social proof, liking, authority, and consistency.

Future work

The researchers hope to run experiments in physical test sites to see how intentions convert into behaviour, and to measure how changes in habits improve health. In the meantime, Dr Boldina continues to present her findings to policy makers.

Critics might question the affordability and cost effectiveness of introducing ‘Active landscape routes’ in the current economic environment.

In response, the researchers argue that installing stepping stones in a turfed area can be cheaper than laying and maintaining conventional tarmac pavements. They also point out that these measures could save governments far greater sums by reducing demand for health care related to lack of exercise.

Reference

A. Boldina et al., ‘Active Landscape and Choice Architecture: Encouraging the use of challenging city routes for fitness’, Landscape Research (2022). DOI: 10.1080/01426397.2022.2142204

Media contact

Tom Almeroth-Williams, Communications Manager (Research), University of Cambridge: researchcommunications@admin.cam.ac.uk / tel: +44 (0) 7540 139 444


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Tesla’s Chinese Rivals Set New Records

Tesla’s Chinese EV rivals are putting pressure on the market leader with monthly records.

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Tesla's Chinese EV rivals are putting pressure on the market leader with monthly records.

Tesla's competition in the electric vehicle market has been heating up over the past two years as more EV manufacturers ramp up production and deliveries.

Elon Musk's Austin, Texas-based company has seen its share of the EV market shrink from about 79% in 2020 to 75.8% in June 2022 to about 65% today as rival automakers continue to ramp up their factories.

Tesla  (TSLA) - Get Free Report still has a lot of good news to report through the first three quarters of 2022, as it is well on its way to delivering 1 million EVs with 908,000 delivered in the year through Sept. 30 after delivering 343,000 in the third quarter. The company also rolled out its newest EV on Dec. 1 with the delivery of its Semi Trucks.

While Tesla's top competitors in the U.S. hold small percentages of the market -- Ford  (F) - Get Free Report, 7%; Kia, 5%; Chevrolet, 4%, Hyundai, 4% -- these companies and smaller ones are setting records at delivering EVs as they increase production.

Ford reported in November that it had a 103% year-over-year increase in EV sales. Kia in the same month said it had a 133% increase in sales year-over-year. Volkswagen reported in November that it had reached its delivery benchmark of 500,000 units a year earlier than expected after recording  a 25% year-over-year increase in deliveries in October.

Shutterstock

Pressure from Chinese Rivals

Tesla is seeing increased pressure coming from China, and not just from covid pandemic-related restrictions and factory closures. Chinese rivals Nio  (NIO) - Get Free Report, Li Auto  (LI) - Get Free Report, and BYD all had impressive numbers for November.

BYD reported that it sold 113,915 fully electric vehicles in November, which was a 147% increase year-over-year. It also sold 116,027 plug-in hybrids, which was a 164% year-over-year increase.

Nio on Dec. 1 reported it delivered 14,178 vehicles in November, a new record-high delivery amount, for an increase of 30.3% year-over-year. Cumulative deliveries of Nio vehicles reached 273,741 as of Nov. 30.

Nio's November deliveries consisted of 8,003 premium smart electric SUVs including 4,897 ES7s, and 6,175 premium smart electric sedans including 3,207 ET7s and 2,968 ET5s.

Nio said that it plans to further accelerate production and delivery in December.

Li Auto on Dec. 1 said that it delivered a record-high 15,034 EVs in November for an 11.5% year-over-year increase. Cumulative deliveries through November reached 236,101.

Li Auto SUV Sales

“We set another monthly record with 15,034 deliveries in November," Yanan Shen, co-founder and president of Li Auto said in a statement "In particular, Li L9 has been the sales champion of full-size SUVs in China for two consecutive months since it commenced delivery, establishing it as a top choice for six-seat full-size family SUVs in China."

Shen said that the Li L9 SUV in November received the highest safety rating for tests on the driver and passenger sides from the China Insurance Automotive Safety Index.   

NIO and Tencent Holdings on Nov. 28 entered into a strategic cooperation agreement to further deepen partnership in the areas of autonomous driving related cloud services, intelligent driving maps and digital ecosystem to provide users with experiences beyond expectation, according to a statement.

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