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As we close out the 2020 trading season, it's time to take a look not just at the top performers for the year, but some of the worst as well.
To be fair, some stocks have just had a rough year - the early stages of COVID-19 really hit hard in so many corners of the market, leaving certain stocks with a longer recovery than others. But for some, a long-term recovery may not be in the cards at all...
If we take a look at the eight tickers in the Nasdaq 100 currently trading in a bear market, one of them may come as a shock.
Intel Corp. (NASDAQ: INTC), a stock I've often referred to as a "T-Rex Technology Stock" - arguably one of the founders of modern computer chip technology - has had a particularly lousy year. Shares are down over 20% year to date while the Nasdaq itself is up nearly 50%. Not to mention, a major institutional investor, Third Point LLC, recently urged for large-scale revisions to its business model, something my experience recognizes as a huge red flag for this stock, despite misguided optimism from less-seasoned investors.
And we're not talking about a retail stock here, or another company forced to close its doors during stay-at-home orders - Intel is a manufacturer of technology designed to make living in isolation more bearable - a product that should be thriving as the rest of the world begins to embrace the advent of 5G.
But despite all of these advantages, Intel's 50-day moving average is falling into a steeper decline every day, with shares now trading well below their 20-day moving average.
Needless to say, this doesn't bode well for Intel stock over the long term.
I'm expecting INTC stock to fall to $35 or lower, but you can turn this 40% drop into 100% gains or more with this put trade...
Action to Take: Buy to open INTC July 16, 2021 $50 put (INTC210716P00050000) using a limit order of $5.65.
This Coin Could Put Bitcoin's 2020 Rally to Shame...
The crypto market has been on fire this year, with Bitcoin surging over 231% - surpassing even Tom Gentile's generous projection.
Now, Tom's got his sights set on another cryptocurrency, one trading for a fraction of the cost, with a profit potential that could dwarf Bitcoin's jaw-dropping returns. In fact, we're betting this tiny microcurrency could hand you 20x your money by year's end - thanks to one huge catalyst...
About the Author
Chris Johnson is a highly regarded equity and options analyst who has spent much of his nearly 30-year market career designing and interpreting complex models to help investment firms transform millions of data points into impressive gains for clients.
At heart Chris is a quant - like the "rocket scientists" of investing - with a specialty in applying advanced mathematics like stochastic calculus, linear algebra, differential equations, and statistics to Wall Street's data-rich environment.
He began building his proprietary models in 1998, analyzing about 2,000 records per day. Today, that database, which Chris designed and coded from scratch, analyzes a staggering 700,000 records per day. It's the secret behind his track record.
Chris holds degrees in finance, statistics, and accounting. He worked as a licensed broker for 11 years before taking on the role of Director of Quantitative Analysis at a big-name equity and options research firm for eight years. He recently served as Director of Research of a Cleveland-based investment firm responsible for hundreds of millions in AUM. He is also the Founder/CIO of ETF Advisory Research Partners since 2007, noted for its groundbreaking work in Behavioral Valuation systems. Their research is widely read by leaders in the RIA business.
Chris is ranked in the top 99.3% of financial bloggers and top 98.6% of overall experts by TipRanks, the track record registry of financial analysts dating back to January 2009.
He is a frequent commentator on financial markets for CNBC, Fox, Bloomberg TV, and CBS Radio and has been featured in Barron's, USA Today, Newsweek, and The Wall Street Journal, and numerous books.
Today, Chris is the editor of Night Trader and Penny Hawk. He also contributes to Money Morning as the Quant Analysis Specialist.