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Stocks surged to close the week higher as investors think the worst of coronavirus is behind us.
That's even after the U.S. unemployment rate soared to 14.7%, the worst since the Great Depression.
Here's what our experts – Chris Johnson, D.R. Barton, Jr., and Shah Gilani – saw in the markets today.
And how they think investors should be positioning themselves heading into next week…
- Chris is bullish on JD.Com Inc. (NASDAQ: JD), currently trading for $46.
- He called it the "perfect stock" to hold in your portfolio from 2020 to 2021.
- Now is a good time to buy because earlier this week, JD bounced of its 50-day moving average with significant volume. This is a great technical indicator that signals investors are confident the stock will likely jump higher in the near term.
- Chris has a $55 price target on JD and thinks a covered call strategy could add an extra 5% to 6% to your total returns with the premiums you collect from selling the calls on your long position.
- Chris is bearish on Boeing Co. (NYSE: BA), currently trading for $132.
- The economy has a direct target on Boeing's back, and travel could be permanently affected with the proposed new air safety guidelines.
- If the stock drops below key technical support at the $120 level, Chris thinks it will quickly run below $100.
- Stay away from this stock, and don't even try trading it, because the government could bail it out indefinitely.
D.R. Barton, Jr. (1:30 p.m. EDT)
- D.R. is bullish on:
- Blackstone Group Inc. (NYSE: BX), currently trading for $52. Technical indicators show the stock is on the path to break $60.
- Chimera Investment Corp. (NYSE: CIM), currently trading for $8. D.R. thinks the stock could top $10 in the next couple weeks.
- Home Depot Inc. (NYSE: HD), currently trading for $233. D.R. thinks the stock could reach new all-time highs (above $247) as people look to renovate their homes themselves to save money.
- D.R. is bearish on:
- All of the cruise line stocks. He thinks they're the No. 1 most at risk industry in the world. They're not essential, and people know they're extremely risky to go on during a pandemic.
- Retail shopping companies like Kohl's Corp. (NYSE: KSS) because we don't know when they'll open again. And with unemployment increasing at a record pace, he thinks consumers will spend on more important things like food first.
- Shah thinks stocks are clearly decoupling from the economy. But he doesn't think the worst is behind us…
- Unemployment will likely continue to rise. And it and could even double – to 30% – according to Shah.
- Shah is worried that futures are pricing in the possibility of negative interest rates here in the United States for the first time ever.
- That could cause the prices of gold and Bitcoin to continue soaring.
- Shah thinks investors would be wise to hold cash here and be patient before putting any money to work.
Catch us Monday – starting LIVE again at 8:45 a.m. EDT with Chris Johnson, right here.
If you missed our live streams today, you can now replay them on our YouTube channel here.
Got a question you want our experts to cover? Send us a note.
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