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Sonic the Hedgehog may be able to run faster than the speed of light, but his film franchise nearly came to a screaming halt in 2019.

A less-than-three-minute trailer released early that year to tease the film’s release, which was just six months away, was widely panned by fans who took to social media to rail against Paramount’s character design. Dubbed “Ugly Sonic,” the blue creature that appeared on film was a far cry from the iconic video game speedster.

Cinematic Sonic, version 1, had more realistic facial features, including human-like teeth, and his body proportions were deemed inconsistent with the character fans grew up with in the ’90s.

“The trailer goes out, and I think it became the most viewed trailer in the history of Paramount Pictures. Which is amazing,” said Toby Ascher, who acquired the rights to Sonic and produced the film franchise. “The only problem was that 90% of people hated the trailer because of the design of Sonic.”

“All of a sudden we went from trying really, really hard to make a really, really faithful video game adaptation to being next in line of the people who had ruined video games for everyone. It just was a disaster of epic proportions,” Ascher added.

The studio pivoted, opting to redesign the title character and push the film’s release back three months to February 2020. The fix cost Paramount around $5 million but resulted in a franchise that has generated nearly $1.2 billion at the global box office. The studio hopes to build on that momentum with a fourth installment in the film franchise, set to debut in 2027.

“The Sonic franchise owes its box office success and longevity to a monumental decision early in the development of the first films’ marketing campaign,” said Paul Dergarabedian, senior media analyst at Comscore. “A re-design of a main character is no small thing. … These decisions can make or break what is every studio’s dream of having a single film turn into a long-term revenue generating franchise. The return on investment by turning an ‘ugly’ Sonic into a beautiful revenue generating franchise is undeniable.”

Ascher first acquired the rights to Sonic the Hedgehog in 2013, a time in Hollywood when video game-inspired films had failed to resonate with audiences.

“When we first started working on Sonic, making a video game adaptation was, like, a really bad idea,” he told CNBC.

No film based on a video game property had, to that point, managed to earn a positive rating from review aggregator Rotten Tomatoes. It wasn’t until 2019 that a video game-based film generated a “fresh” rating on the site, indicating more than 60% positive reviews.

“I don’t think anyone in town really thought making a Sonic movie was a good idea,” Ascher said. “But, I think our strategy was that we had grown up with these games. We’ve grown up with these characters, and we wanted to treat them like any other character. We wanted to give them real emotional arcs, and real emotional stories where you could relate to them.”

Ascher noted that previous video game adaptations typically focused on worldbuilding rather than character development.

“What we’ve been able to do is inject into the franchise heart, and I think that that’s what’s made it different,” said Neal Moritz, Ascher’s producing partner and producer of franchises like “The Fast and the Furious” and “21 Jump Street.”

Both Ascher and Moritz noted that while the filmmaking team behind the first “Sonic the Hedgehog” film overhauled the main character’s design, the story remained pretty much the same.

The filmmaking team was blindsided by audiences’ reactions to the first trailer, but were resolute in trying to resolve the issue rather than shelve the film or release it in its current form.

Moritz said he made an “impassioned speech” to the heads of Paramount and Sega to allow the filmmakers to fix the mistake.

As Moritz recalls, he told executives: “We really screwed up here, but there’s an incredible amount of interest and what we need to do is fix it … We need some more money and we need some more time. If you give that to us, I think we could turn this thing around.”

“I give both Paramount and Sega a lot of credit,” Moritz said. “They said ‘OK.’”

In the redesign, the team brought back Sonic’s iconic white gloves and classic red shoes. They reinfused the character with some of his cartoon roots, and six months after the first trailer, Paramount released a new iteration.

“The fans saw that we were trying to be really genuine in our love for this franchise,” Ascher said, noting that in the wake of the first trailer the team began engaging more with fans and focus groups to drum up feedback and inspiration.

The new trailer was well-received by fans, and three months later “Sonic the Hedgehog” opened to $58 million at the box office. The feature went on to collect $146 million domestically before the pandemic shuttered theaters. Globally, it pulled in $302 million.

The Sonic franchise has continued to thrive in the following years, with each follow-up feature outperforming the last.

“Sonic the Hedgehog 2” snared $190 million domestically and $403 million globally, while “Sonic the Hedgehog 3″ tallied $235 million stateside and $485 million worldwide.

“That’s a big jump,” said Marc Weinstock, Paramount’s president of worldwide marketing and distribution. “I get excited that every new movie does better than the last one, which is rare.”

Following the success of the second “Sonic” film, the studio’s then-president and CEO of Paramount Pictures, Brian Robbins, greenlit a “Knuckles” series based on the franchise for the company’s streaming service, Paramount+, as well as a third Sonic film.

Sonic was becoming multi-platform, much like Robbins and Paramount had done for franchises like “Teenage Mutant Ninja Turtles,” “A Quiet Place,” “Spongebob Squarepants” and “Paw Patrol.”

The “Knuckles” show generated more than 11 million global viewing hours in its first 28 days on Parmount+.

The theatrical success also rocketed Sonic from a $70 million licensing business to one that generates more than $1 billion in retail revenue annually, according to Ivo Gerscovich, Sega’s senior vice president and chief business and brand officer of Sonic the Hedgehog.

“The great thing about Sonic — and the success of Sonic from the very beginning — is that we basically have listened to the fans from day one,” Robbins, now co-CEO of Paramount, said. “The fans are fanatical about this franchise and love this franchise and know this franchise. Because of that, they’ve become really key in shaping the franchise … They evangelize it.”

Fans inspired the casting of Keanu Reeves as Shadow, an archrival of Sonic, in the third Sonic film. And the filmmaking team says it continues to look to fans to inspire which characters it will add to the films and series next.

Ascher and Moritz both teased that the fourth Sonic film with again feature a new fan-favorite character, but said the team will continue to expand the franchise’s universe at a slow pace.

“If all of a sudden we bring every character, they are not going to get the time that the audience needs to understand them and relate to them and really fall in love with them,” Ascher said. “So, as we bring characters in, whether it’s film or it’s TV, the most important thing is that they have a good story that really showcases the character in an incredible way.”

Disclosure: Comcast is the parent company of NBCUniversal and CNBC. NBCUniversal owns Rotten Tomatoes and is the distributor of “The Fast and the Furious” films.

This post appeared first on NBC NEWS

The news is that the United States will have a Cryptocurrency reserve. How this will occur is still murky, but Bitcoin surged on the news. Carl and Erin give you their opinion on Bitcoin’s chart setup and possible future movement.

Carl opens the trading room with a review of the DP Signal Tables which are showing new deterioration. The Bias Table shows numerous Bearish Biases.

The market overview was next up with a complete review of the SPY under the hood as well as coverage of Bitcoin, the Dollar, Gold, Gold Miners, Bonds, Yields and Crude Oil. Carl even looked at the Silver chart.

As always Carl walked us through the Magnificent Seven daily and weekly charts. There are plenty of bearish configurations.

After questions, Erin was up sharing her thoughts on Sector Rotation. Defensive sectors are still leading the pack while Technology and other aggressive groups look bearish despite Friday’s rally. Erin dove into the under the hood chart of Technology.

Erin finished the trading room going over viewer requests including SMCI and PFE.

01:30 DP Signal Tables

04:59 Market Overview

10:30 Bitcoin

12:00 Market Overview (continued)

15:45 Magnificent Seven

21:30 Questions (including Bonds and Gold long-term)

31:26 Sector Rotation

41:19 Symbol Requests

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Disclaimer: This blog is for educational purposes only and should not be construed as financial advice. The ideas and strategies should never be used without first assessing your own personal and financial situation, or without consulting a financial professional. Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of any other person or entity.

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A German tattoo artist who tried to enter the United States from Mexico through the San Diego border has been in Immigration and Customs Enforcement (ICE) detention for over a month, according to a friend who witnessed her being detained.

Jessica Brösche, a Berlin-based tattoo artist, had been vacationing in Mexico when she decided to travel to the US from Tijuana with an American friend, Nikita Lofving. But at the San Ysidro port of entry immigration authorities took Brösche into custody.

The call was on January 25. Brösche has been in detention ever since, half a month past when she originally hoped to leave the US on February 15, Lofving says.

In a statement to KGTV, an ICE spokesperson wrote that Brösche is in detention due “to the violation of the terms and conditions of her admission.”

“I mean, she was coming to work, but not really for money,” Lofving said. “We have an agreement between artists. She’s one of my best friends. We’ve been working on this tattoo project on my body for the last five or six years, and in exchange, I make clothes for her.”

In a phone interview with KGTV last month, Brösche said that she had been kept in “horrible” solitary confinement for eight days when she entered US custody.

“I just want to get home, you know? I’m really desperate,” Brösche told KGTV from Otay Mesa. “I don’t really understand why it’s taking so long to get back to Germany.”

Lofving said that Brösche’s friends and family are hoping that she’ll be out of detention and on a flight back to Germany on March 11, and that her mother bought her a plane ticket home. They aren’t sure whether ICE will let her out by then, however.

“We sent (Brösche) back the information for the tickets, and she told her ICE agent,” Lofving continued, saying the ICE agent had said, “No, you have to get the ticket approved before you buy it.”

‘Extremely concerning’

“Our responsibility is to care for each person respectfully and humanely while they receive the legal due process that they are entitled to,” said spokesperson Ryan Gustin.

By entering on the waiver program, a tourist waives their right to any kind of litigation, Joseph explained.

But normally, a tourist denied entry to the US would be allowed to withdraw their application for admission. “Instead of being subjected to deportation proceedings, they’re allowed to kind of get back on the airplane and turn around and go home, and that does not appear to have happened in this case,” Joseph continued.

In any case, Joseph said that Brösche’s extended stay in Otay Mesa is “extremely concerning.”

This post appeared first on cnn.com

Domino’s Pizza is finally releasing its own version of stuffed crust on Monday, aiming to win over the customers who are willing to spend more on the pricey pizza customization. 

Thirty years ago, Yum Brands’ Pizza Hut debuted the cheesy stuffed crust, marketing the launch with a television commercial starring Donald Trump. As years passed, rivals Papa John’s and Little Caesars eventually followed with their own takes. Trump went from hawking pizza to sitting in the Oval Office.

Generations of consumers have grown up with stuffed crust, including the increasingly important Gen Z diners, who are entering the workforce and buying their own pizzas now. The addition is critical for Domino’s, the top U.S. pizza chain, to compete with rivals Pizza Hut and Papa John’s, which have ceded market share to Domino’s in recent quarters but still steal the pizza chain’s customers.

“Nearly 13 million Domino’s customers each year are buying stuffed crust from our competitors, and these are our customers who have to leave our brand because we’re the only national pizza brand that doesn’t offer it,” Domino’s Chief Marketing Officer Kate Trumbull told CNBC.

Domino’s has taken so long to release stuffed crust that a survey of its customers found that 73% already believed that the chain offered it on the menu, according to Trumbull.

That all changes on Monday, when Domino’s launches its Parmesan Stuffed Crust. The menu item is included in the pizza chain’s $9.99 carryout deal.

When Pizza Hut originally launched stuffed crust, Domino’s viewed the menu item as gimmicky, according to Trumbull. Plus, the company heard that stuffed crust caused bottlenecks and slowed down service, leading to unhappy customers and workers.

But Domino’s perspective changed after more national competitors followed Pizza Hut’s lead. The chain committed to launching its own version in 2022, when its sales were faltering in the wake of the Covid-19 pandemic pizza boom.

“It has been one of the longest development efforts in the company’s history,” Trumbull said.

The process began with extensive market research. Findings included that stuffed crust customers tend to buy pizza more frequently and often spend more per transaction.

Eight potential iterations followed before Domino’s landed on the right recipe for its Parmesan Stuffed Crust, made with mozzarella and topped with garlic seasoning and a sprinkle of Parmesan cheese.

At the same time, Domino’s was improving its restaurants’ overall operations, retraining its employees across the system on making its crust and rolling out a custom dough spinner to restaurants. If the pizza chain hadn’t made its kitchens more efficient, it wouldn’t have been able to launch stuffed crust, according to Trumbull.

Ahead of the launch of Parmesan Stuffed Crust, the pizza chain spent 12 weeks training franchisees and 7,000 stores on how to make it properly.

“We’re not going to leave anything to chance after taking three years,” Trumbull said.

This post appeared first on NBC NEWS

Many are watching the disaster in growth stocks unfold, including us at EarningsBeats.com, but the reality is that many other areas of the stock market represent a silver lining. When growth stocks sell off, essentially two things can happen. One, the rest of the stock market sells off as well, indicative of pure market distribution. These types of selloffs can lead to large corrections or even bear markets. The second type of growth stock selloff can be much more bullish in nature, as money simply rotates from very overbought growth stocks to much more reasonably-priced value stocks for a brief period of time. The former represents a necessary departure from current bullish trading strategies. The latter represents a need for patience. I want you to look at last week’s performance by sector and decide if the selling was more like across-the-board distribution or simply bullish rotation like we’ve seen many times over the past 12 years of this secular bull market advance:

7 sectors rose last week while only 4 declined. It was absolutely NOT a case where everything was selling off. It may morph into that type of market environment, but that’s not what we saw last week. Remember, the NASDAQ was down more than 5% last week, before Friday’s rally kicked in. That 5% drop was over and above the huge Friday drop just prior to last week. The cumulative drop on the NASDAQ 100 from its all-time high was 8%, not far from correction territory, which is considered a drop of 10% or more, but less than 20%. Options expiration may have triggered the start of this 8% selloff, but it was unlikely the only reason.

A week ago Friday, there was a turning point in the stock market short-term. Money rotated very heavily, on an intraday basis, away from aggressive areas like consumer discretionary (XLY) and into defensive, value-oriented areas like consumer staples (XLP). Part of this shift can be attributed to monthly options expiration in February as there was a TON of net in-the-money call premium on key stocks like NVDA, META, PLTR, etc. Nonetheless, it was the 10th-highest bearish distribution day (between the XLY and XLP) since the financial crisis bottom in 2009. The other 9 all occurred during either cyclical bear markets or during corrections. Will this 10th occurrence be any different than the previous 9? The takeaway here is that those types of massive distribution days are NOT normal and should give us bulls reason to pause. They don’t occur very often, thankfully.

But let’s get back to that sector rotation last week and take a look at financials (XLF), specifically, which gained 2.82% for the week and closed one penny below its all-time closing high of 52.19. The top-performing industry group within financials was full line insurance ($DJUSIF), which broke out of a lengthy period of consolidation, as you can see below:

Bullish momentum is accelerating, as evidenced by the rising daily PPO. Yes, we’re overbought with an RSI at 74, but overbought can remain overbought for a period of time. This is a bullish continuation pattern (uptrend followed by sideways, or rectangular, consolidation) breakout and, outside of a possible brief pullback, I’d look for higher prices down the road, ultimately reaching a measurement target of 88-89. I’ll be featuring a full line insurance stock in our Monday morning EBD that is in position to benefit from this industry group breakout. If you’re not already a subscriber to our FREE EB Digest newsletter, you can CLICK HERE to subscribe.

Happy trading!

Tom

As President Donald Trump unleashes sweeping changes across the US government and overturns decades of American foreign policy, Chinese leader Xi Jinping is preparing to hold a major political gathering designed to project something else: tightly-controlled stability.

Thousands of delegates are arriving in the Chinese capital this week for the country’s “two sessions” annual meeting, a highly choreographed spectacle where Xi and his officials will broadcast China as a major power that’s confident in its direction and steadily advancing its tech prowess and global rise.

That metaphoric split screen between the two powers will be in the spotlight on Wednesday morning in Beijing, when Trump’s first address to Congress will roughly coincide with a state-of-the-union-like speech delivered by China’s No. 2 official Li Qiang at the opening meeting of the National’s People Congress (NPC), which rubber-stamps decisions already made behind closed doors.

There, Li is expected to announce China’s yearly targets for economic growth and military spending — and lay out how Beijing plans to continue its economic growth and transformation into a technological powerhouse in the face of mounting pressure from the United States.

This year’s two sessions, which includes roughly weeklong meetings of both the NPC and the country’s top advisory body, gets underway as the White House is due to double the additional tariff on all Chinese imports to the US to 20% from 10%. Those duties sit atop existing tariffs on hundreds of billions in Chinese goods.

It’s unclear how Beijing will respond to the latest move. Last month, it took what were seen as modest retaliatory steps against 10% duties by slapping 15% tax on certain types of American coal and liquefied natural gas and a 10% tariff on crude oil, agricultural machinery, large-displacement cars and pickup trucks, while restricting exports of certain raw materials.

Despite the challenges, analysts aren’t bracing for any major policy surprises or U-turns. True decision-making power lies with the Chinese Communist Party, whose authority cannot be challenged in the country – and Xi, the party’s most powerful leader in decades.

The increased tariffs — and the threat of more economic and tech controls to come — are casting a long shadow over China’s two sessions, which observers will also be watching for signs on how Beijing will continue to address its rumbling economic difficulties at home.

And signs point to Beijing staying the course on its leader’s strategies to bolster innovation, industry and self-sufficiency to steel itself against frictions ahead: all while projecting that, in China, it’s business as usual.

We must “face difficulties head-on and strengthen confidence” amid growing external challenges, the Communist Party journal Qiushi quoted Xi as saying in an article released Friday that’s meant to set the tone for the gathering.

High-tech prowess

China is entering this year’s two sessions buoyed by a surge of confidence and national pride in its tech sector.

Earlier this year, privately owned Chinese AI firm DeepSeek stunned Silicon Valley with the breakout success of its latest open-source large language model. Adding to that milestone: Beijing’s long-term plans for achieving global dominance in green technologies have borne fruit, with its top electric vehicle maker rivaling Elon Musk’s Tesla.

China’s leaders are expected to continue to prioritize investment in innovation and making the world’s second-largest economy self-sufficient in high tech. Xi and his cadres see high-end chips, quantum computing, robotics and AI as critical to powering economic growth and upgrading Chinese manufacturing.

“China needs to find a new engine for its economic development. The old model, the big infrastructure, construction–driven (one), is probably not going to work … and (the high tech sector) is the most feasible path China has,” said political scholar Liu Dongshu of the City University of Hong Kong. “China will prioritize this – and US pressure makes this more urgent.”

Last month, Washington said it was considering expanding restrictions on US investment in sensitive technologies in China and would continue to restrict Chinese investment in strategic American sectors.

But it’s not all negative pressure, Liu added, as China “sees an opportunity to replace the United States in some parts of the world order.”

“China may think that since (DeepSeek’s success) it can be the leader in global AI over the US, or similarly in areas like climate change, where electric vehicles might be China’s signature policy to solve the climate change problem,” he said.

Observers will also be watching closely what steps Beijing may take to unleash private industry to advance innovation as it gears up for the potential of more restrictions from the US.

Xi sent a strong signal that China needed its entrepreneurs to step up in this fight last month, hosting the country’s top tech executives in Beijing, where he proclaimed it was “prime time” for private enterprises “to give full play to their capabilities.”

Beijing followed the meeting with steps to improve market access for private firms and discussion of a Private Economy Promotion Law, which could be passed in the months, if not the days, ahead – seen as a significant course correction following a years-long, sweeping regulatory crackdown on private industry.

‘Doubling down’

The two sessions gathering is also set, as in past years, to reflect Xi’s increasingly tight grip over China’s political system. The leader used the 2018 NPC meeting to pave the way for him to stay in power indefinitely, with the removal of the presidential two-term limit in the Chinese constitution.

Last year, the scrapping of a longstanding annual press conference led by the country’s second highest-ranking official was widely seen as another sign of Xi’s control over the official narrative – and eliminated a rare chance for journalists to interact with a top Chinese official. The event is not expected to resume this year.

This year, the gathering is expected to again highlight how united the political apparatus is around his vision for the future, despite the country’s economic hurdles.

“The NPC this year will really be in the context of continuing to derisk China’s rise and really hardening its posture against global uncertainties,” including in Beijing’s relationship with the US and Europe, said Nis Grünberg, a lead analyst at MERICS think tank in Germany.

As China “doubles down” on this approach, deepening “the role of the party and the core of the party – Xi Jinping – to steer this whole process is more important than ever to the leadership,” he said.

China’s slowing economy has been roiled by a property sector crisis and high local government debt, while foreign investment has cratered, consumption has flagged and young people struggle to find jobs.

China earlier this year reported 5% economic growth in 2024, a figure viewed with heavy skepticism by many external observers, and analysts say it’s likely to float a similar number for its GDP target this year. Signs for how Beijing plans to address these challenges will also be closely watched, after a raft of policy adjustments since last summer were seen as falling short.

In the days ahead, Beijing may unveil new efforts to boost consumer spending through stimulus or social welfare benefits. US tariffs make this even more urgent, observers say, as China’s manufacturers may need to rely more on the domestic market.

Xi linked weak demand to China’s “economic security” during a key Communist Party economic meeting late last year, according to his speech published Friday in Qiushi — in a signal of the increasing importance of addressing the issue.

But even still, analysts see little sign of a departure from Xi’s primary focus on bolstering support for industry.

Beijing is likely to release policies to “make sure that at least the big and some of the medium-sized industrial producers can survive additional (US) tariffs,” according to Victor Shih, director of the University of California San Diego’s 21st Century China Center.

Beijing is counting on its subsidized companies being able to weather those tariffs, given the dependency of US industries on Chinese goods – and to have its own firms ultimately come out dominant.

“So in a sense they’re not afraid of (them),” he added, of US tariffs.

In the short term, such industrial support could create more friction with the US and China’s other trade partners. The country’s reliance on exports as an agent of growth propelled it to a nearly $1 trillion trade surplus with the rest of the world last year – a driving factor for Trump’s tariff push.

For China, that fits in with the wider message it’s expected to send in the coming days: even as headwinds mount, it’s confidently staying its course – and ready to be seen as a champion of global trade and order.

This post appeared first on cnn.com

The U.S. Treasury Department announced it will not enforce a Biden-era small business rule intended to curb money laundering and shell company formation.

In a Sunday evening announcement, Treasury said in a news release that it will not impose penalties now or in the future if companies fail to register for the agency’s beneficial ownership information database that was created during the Biden administration.

Despite efforts by small businesses to undo the rule in the courts, it remains in effect.

On Sunday, President Donald Trump on his Truth Social media site praised the suspension of enforcement of the rule and said the database is “outrageous and invasive.”

“This Biden rule has been an absolute disaster for Small Businesses Nationwide,” he said. “The economic menace of BOI reporting will soon be no more.”

In September 2022, the Treasury Department started rulemaking to create a database that would contain personal information on the owners of at least 32 million U.S. businesses as part of an effort to combat shell company formations and illicit finance.

The rule required most American businesses with fewer than 20 employees to register their business owners with the government as of Jan. 1, 2024. Small businesses are targeted because shell companies, often used to hide illegally obtained assets, tend to have few employees.

Treasury officials, including former Treasury Secretary Janet Yellen, said the regulatory burden would be small, costing about $85 per business, but would offer benefits to law enforcement officials seeking to track down money launderers and other criminals. She said in January 2024 that more than 100,000 businesses had filed beneficial ownership information with Treasury.

The rule and its legislative authority — the Corporate Transparency Act, an anti-money laundering statue passed in 2021 — have been mired in litigation. In 2022, a small business lobbying group sued to block the Treasury Department’s requirement that tens of millions of small businesses register with the government. On Feb. 27, Treasury’s Financial Crimes and Enforcement Network said it would not take enforcement actions against companies that do not file beneficial ownership data with the agency.

Business leaders cite privacy and security concerns about the database and say it is duplicitous to other government agencies that maintain corporate databases.

“This is a victory for common sense,” said U.S. Secretary of the Treasury Scott Bessent on Sunday. “Today’s action is part of President Trump’s bold agenda to unleash American prosperity by reining in burdensome regulations, in particular for small businesses that are the backbone of the American economy.”

This post appeared first on NBC NEWS

In my recent podcast interview with every trading day at 5:00pm ET on our YouTube channel!


After a major low in October 2023 around $103, ICE spent the next 12 months in a primary uptrend formed by a consistent pattern of higher highs and higher lows. Note the bearish momentum divergence that occurred going into the late October high around $167, and how the subsequent pullback found support right at the 38.2% Fibonacci retracement of the previous uptrend phase.

Over the last six weeks, ICE has reversed course and now sits above two upward-sloping moving averages as it has achieved a new all-time high. The bottom panel provides a fantastic reminder of the value of buying strong charts after they have pulled back to potential support levels, and also shows the impressive outperformance ICE has experienced in 2025.

The daily chart of Visa (V) features a cup-and-handle pattern for much of 2024, with a rounded bottom pattern ending with a brief pullback before a breakout above the “rim” of the cup. From that breakout around $290 in early November 2024, Visa has not looked back. This week, V achieved a new 52-week high, continuing a trend of outperformance that goes back to that November breakout.

Visa is a great example of what comprises a strong technical configuration. Price is making higher highs and higher lows, the two moving averages are both sloping higher, the RSI remains in a bullish range between 40 and 80, and the relative strength has been trending higher. As long as those features remain, the chart suggests further upside potential.

Not all financial names have been breaking out this week, with JPMorgan Chase (JPM) a great example of stocks that have pulled back even though the long-term trend remains strong. This week, JPM dropped to test its 50-day moving average, in a similar fashion to other pullbacks through the last 18 months.

Even with those frequent drawdowns, however, JPMorgan has sustained a bullish momentum configuration, with the RSI usually finding a low around 40 on price pullbacks. The relative strength has improved over the last six months, as JPM has managed to move higher while leading growth names have been struggling to hold key support levels.

One of the most common momentum factors measured by quantitative models is called the “12-1” factor, meaning the 12-month return minus the one-month return. A stock that has experienced a strong 12 months but a weak one-month would score the best. I would guess those momentum models are grading JPM quite well given the recent pullback and long-term bullish phase.

The best way I’ve found to weather periods of market uncertainty is to focus on relative strength, looking for stocks that are able to outperform their struggling benchmarks. These three stocks in the financial sector prove that there are charts out there with decent technical configurations; you just need to know where to look!

RR#6,

Dave

P.S. Ready to upgrade your investment process? Check out my free behavioral investing course!


David Keller, CMT

President and Chief Strategist

Sierra Alpha Research LLC


Disclaimer: This blog is for educational purposes only and should not be construed as financial advice. The ideas and strategies should never be used without first assessing your own personal and financial situation, or without consulting a financial professional.

The author does not have a position in mentioned securities at the time of publication. Any opinions expressed herein are solely those of the author and do not in any way represent the views or opinions of any other person or entity.

To seasoned diplomatic observers, US President Donald Trump’s furious dressing down of Volodymyr Zelensky in the Oval Office was a planned political mugging, a trap set by the Trump administration to discredit the Ukrainian leader and remove him as an obstacle to whatever comes next.

Whether it was orchestrated or not, Moscow – which reacted with glee to the White House slanging match – is now anticipating talks aimed at rebuilding the US-Russia relationship will continue, even accelerate, in the weeks ahead.

Nothing has been announced in public. But, privately, there’s talk of the Trump-Putin summit, always on the cards, now being fast-tracked.

There is also renewed optimism in Moscow that, with President Zelensky at odds with President Trump and his team, difficult negotiations to end the war in Ukraine will now take a back seat to a raft of potentially lucrative US-Russia economic deals already being tabled behind closed doors.

Riyadh, in Saudi Arabia, is where the US Secretary of State Marco Rubio and the Russian Foreign Minister Sergey Lavrov led the first round of extraordinary talks last month, sidelining Ukraine.

Separately, the Financial Times is reporting that there have been efforts to involve US investors in the restarting Russia’s Nord Stream 2 gas pipeline to Europe, which Germany halted at the beginning of Russia’s invasion of Ukraine.

Dmitriev has called for the Trump administration and Russia to start “building a better future for humanity,” and to “focus on investment, economic growth, AI breakthroughs,” and long-term joint scientific projects like “Mars exploration,” even posting a highly produced computer graphic, on Elon Musk’s X social media platform, showing an imagined joint US-Russia-Saudi mission to Mars, on board what appears to be a Space X rocket.

Putting aside the many risks, there are clearly vast profits to be made in doing business with Russia, which incidentally also has the world’s fourth biggest reserves of rare earths, far bigger than Ukraine’s.

That clearly appeals to the mercantile President Trump, whose relentless pursuit of a lucrative deal is being harnessed by the Russian state.

“Trump’s business acumen crushes Biden’s narratives. The attempt to defeat Russia collapsed,” Dmitriev commented on X.

But what has been witnessed since Trump’s inauguration in January seems to be about way more than money but a fundamental resetting of US-Russia ties.

By so closely embracing the Kremlin, the Trump administration risks turning its back on the Western allies, leaving Europe isolated in a seismic shift of Washington’s global stance.

Even the Kremlin, somewhat taken aback by the speed of events, has publicly taken note.

“The new (US) administration is rapidly changing all foreign policy configurations. This largely coincides with our vision,” the Kremlin spokesman, Dmitry Peskov, told Russian state television in remarks which aired Sunday.

But why the US president would choose the Kremlin over America’s traditional partners remains the subject of intense speculation.

Much of it, like the frequent suggestion that Trump is somehow a Kremlin agent, or beholden to Putin, is without evidence.

Perhaps the right-wing US ideological fantasy that Russia is a natural US ally in a future confrontation with China, and can be broken away from its most important backer, is motivating Washington’s dramatic geopolitical shift.

But for many bewildered observers, both explanations for Trump’s extraordinary pivot to the Kremlin seem equally misplaced.

The usually strained, if not openly hostile, relationship between the US and Russia appears to be entering a new and radical phase.

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Nvidia CEO Jensen Huang said next-generation AI will need 100 times more compute than older models as a result of new reasoning approaches that think “about how best to answer” questions step by step.

“The amount of computation necessary to do that reasoning process is 100 times more than what we used to do,” Huang told CNBC’s Jon Fortt in an interview on Wednesday following the chipmaker’s fiscal fourth-quarter earnings report.

He cited models including DeepSeek’s R1, OpenAI’s GPT-4 and xAI’s Grok 3 as models that use a reasoning process.

Nvidia reported results that topped analysts’ estimates across the board, with revenue jumping 78% from a year earlier to $39.33 billion. Data center revenue, which includes Nvidia’s market-leading graphics processing units, or GPUs, for artificial intelligence workloads, soared 93% to $35.6 billion, now accounting for more than 90% of total revenue.

The company’s stock still hasn’t recovered after losing 17% of its value on Jan. 27, its worst drop since 2020. That plunge came due to concerns sparked by Chinese AI lab DeepSeek that companies could potentially get greater performance in AI on far lower infrastructure costs.

Huang pushed back on that idea in the interview on Wednesday, saying DeepSeek popularized reasoning models that will need more chips.

“DeepSeek was fantastic,” Huang said. “It was fantastic because it open sourced a reasoning model that’s absolutely world class.”

Nvidia has been restricted from doing business in China due to export controls that were increased at the end of the Biden administration.

Huang said that the company’s percentage of revenue in China has fallen by about half due to the export restrictions, adding that there are other competitive pressures in the country, including from Huawei.

Developers will likely search for ways around export controls through software, whether it be for a supercomputer, a personal computer, a phone or a game console, Huang said.

“Ultimately, software finds a way,” he said. “You ultimately make that software work on whatever system that you’re targeting, and you create great software.”

Huang said that Nvidia’s GB200, which is sold in the United States, can generate AI content 60 times faster than the versions of the company’s chips that it sells to China under export controls.

Nvidia counts on billions of dollars of infrastructure spend annually from the largest tech companies in the world for an outsized amount of its revenue. The company has been the biggest beneficiary of the AI boom, with revenue more than doubling in five straight quarters through mid-2024 before growth decelerated slightly.

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