🍋 Inverse Cramer

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Good Morning and Happy Friday! Those accepted into Northeastern University law school may need to postpone celebrations this weekend - the school mistakenly sent out 4,000 erroneous acceptance letters. The fan who caught Aaron Judge’s 62nd home run ball could fetch over $2 million for it.

TikTok’s parent company ByteDance reported the company tripled its operating losses to over $7 billion. Adidas says its relationship with Kanye West is under review, and Musk’s Twitter takeover hit a snag over a debt-financing issue. And tough news for finance bros as pharmaceutical companies and suppliers are reporting Adderall shortages.

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1. Story of the Day: Inverse Cramer

Not a fan of Jim Cramer’s ‘Mad Money’ picks? An ETF is in the works to short Jim’s picks. Tuttle Capital Management, an ETF-fund developer, filed with the SEC this week to launch the ‘Inverse Cramer ETF’. The inverse ETF would aim to provide the exact opposite returns of Cramer’s picks.

Cramer’s strong personality and high profile as a stock market guru have drawn ridicule, and Cramer is one of Wall Street’s biggest meme targets. Some claim that Cramer is dead wrong and joke investors should do the exact opposite of what he says.

The notorious ‘Magnificent Seven’ Cramer picked almost two years ago has become a meme as those seven stocks have struggled mightily since. Cramer also issued a sell notice on Netflix when it was at $11. (currently at $240)

While even the best investors will inevitably swing and miss from time to time, the meme of Jim Cramer has taken on a life of its own. Amidst the memes, Tuttle is turning the joke of doing the exact opposite what Cramer says into a reality.

Tuttle, which plans to sell under the sticker $SJIM (short Jim) for its Cramer inverse ETF, achieved notoriety for creating an ETF that shorts all of Cathie Wood’s picks. On the year, the Cathie Wood inverse ETF is up nearly 60%.

Takeaway: In the era of meme stocks and inverse ETFs, there’s little investors can’t do. Cramer has been the butt of his fair share of jokes, and Tuttle’s inverse ETF is a unique and funny innovation. While there’s no guarantee $SJIM will enjoy the same success as the inverse Cathie Wood’s ETF, Tuttle is nevertheless opening a window to the extent financial innovation can encompass virtually anything in 2022.

2. Markets Rundown

Stocks closed lower on Thursday as investors awaited monthly jobs data.

Movers & Shakers

• (+) Compass ($COMP) +16% after Insider reported Vista Equity Partners is considering a deal that would take the company private.

• (+) Pinterest ($PINS) +5% after Goldman Sachs upgraded the stock to buy from neutral.

• (–) General Electric ($GE) -2% after the company announced wind workforce layoffs.

Private Dealmaking

• Form Energy, a long-duration battery storage developer, raised $450 million

• NetSPI, a cybersecurity firm, raises $410 million from KKR

• Securiti, a data privacy and security platform, raised $75 million 

• Carbon6 Technologies, an e-commerce software bundler, raised $66 million

• Loop, an EV charging station startup, raised $60 million

• Alloy Therapeutics, a drug discovery startup, raised $42 million

• GlossGenius, a salon management system, raised $25 million

Top Reads

• NYC’s Wall Street worries (Axios)

• Uber revives self-driving program (YF)

• Markets are starting to act super strange (CNN)

• Market starts to cool following rising jobless claims (Fox)

• How Elon Musk could change Twitter (CNN)

• Peloton slashes 500 more jobs as it races to return to growth (CNBC)

• Apollo, Sixth Street no longer in talks to finance Musk’s Twitter deal (Reuters)

• Why Melinda French Gates wants an alternative to Silicon Valley (CNBC)

• HSBC considers Canadian unit sale, but antitrust concerns loom (Reuters)

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4. Medium of the Day: International Intrigue - Global Affairs Newsletter

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You can join over 10,000 readers at desks at the Pentagon, investment banks, embassies, and top universities who read every day.

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5. Short Squeez Picks

• Want to break into tech? The Commons' programs + community has helped hundreds of bankers land jobs at companies like Stripe and DoorDash. Last chance to enroll this year. Get Priority Access

• 12 powerful visuals about success and life 

• Why it’s the uncertainty, not the delay, that gets you in the end

• A simple trick on Sunday to 8x the upcoming week’s productivity

• Why you should book your holiday airfare now 

• How to analyze a business like an investor in 22 steps

6. Daily Visual: Credit Suisse Bond Yields Moon

Credit Suisse and UBS bond yields

Source: Axios

7. Daily Acumen: A Lot is a Choice

"You might want to make something that a lot of people want a little…

Or you could make something that a few people want a lot.

It’s usually neither.

It’s rarely (very rarely) both.

If you work hard and make intentional choices, though, you might end up with one or the other."

Source: Seth's Blog

8. Crypto Corner

• Wanted crypto executive linked to $60 billion crash faces passport freeze

• Crypto prime brokerage lacks teeth without lending  

• Nasdaq to wait for regulation before launching crypto exchange 

• How Crypto Twitter could change under Musk’s leadership 

• EU confirms Russia’s crypto ban as bloc tightens sanctions 

• How to tell if a crypto project is a scam 

9. Memes of the Day

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