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5 Ways to Beat the Fed (and Crush Inflation)

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Markets Live Recap: Another $3 Trillion in Stimulus Money (Barely) Lifts Stocks
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Stocks: AAPL, GLD, NVDA, QQQ, SH

Markets Live Recap: Another $3 Trillion in Stimulus Money (Barely) Lifts Stocks

By Money Morning Staff Reports, Money Morning • May 15, 2020

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4Markets faltered in early trading this morning as the Trump administration moved to block shipments of semiconductors to Huawei Technologies from global chipmakers.

Retails sales data also showed a 16.4% month-over-month drop in April - an all-time record.

The news sent the Dow down 1% to start the day, before it rallied and closed 0.25% higher as news surfaced that the White House would likely support a new round of stimulus checks.

The full bill would include an additional $3 trillion total worth of stimulus.

Here's what our experts - D.R. Barton, Jr., and Shah Gilani - thought about the moves in financial markets today and what they're looking for next week.

D.R. Barton, Jr. (1:30 p.m. EDT)

  • D.R. noted that the gold to silver ratio had never been higher than it is now.
    • That means gold has never been worth more relative to silver in their respective histories.
    • If silver pulls back, D.R. thinks investors should take a strong look at buying the metal.
  • D.R.'s best trade today:
    • Buy the May 29 $315 call on Apple Inc. (NASDAQ: AAPL).
    • After the stock's pullback from $319, AAPL found support at the $300 level earlier this week. And it's still in a positive bullish momentum trend with a high probability of breaking out to the upside.
    • D.R. thinks this short-term trade will pay off in the next week or two.
  • D.R. also likes NVIDIA Corp. (NASDAQ: NVDA) at current levels because of its fundamentals and technical positive momentum.
    • Fundamentals: The Bitcoin halving and growing number of people playing video games are both increasing demand for the company's computer chips.
    • Technicals: The stock is trading well above its 50- and 200-day moving averages. And the 50-day is far from breaking through the 200-day to the downside.
  • To get trades every day, check out D.R.'s Dark Edge Project - where he goes live every morning at 10:35 a.m. EDT.

Shah Gilani (3:45 p.m. EDT)

  • Shah thinks there's almost "no reason" for investors not to maintain a position in the Proshares Short S&P 500 ETF (NYSEARCA: SH).
  • Shah is also an advocate of buying puts on the PowerShares QQQ Trust ETF (NASDAQ: QQQ) if the index rallies next week. It's already on the verge of overbought territory.
  • Shah is still bullish on gold and gold miners.
    • The SPDR Gold Trust (NYSEARCA: GLD) is his favorite way to play the metal if you can't get your hands on the physical commodity itself.

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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