Archives for January 2021

January 2021 - Money Morning - Only the News You Can Profit From

Here's the Best $1 Trade on Raytheon Right Now

Two of America's biggest defense contractors turned their earnings in this past week, and the results were… mixed.

Raytheon Technologies reported a solid beat on earnings per share, and the stock went up, but Lockheed Martin took a beating for missing on earnings expectations – a heckuva way for investors to treat the company that just this past Wednesday replaced Boeing as the world's biggest aerospace and defense operation.

But the common thread here is both companies' extremely iffy forward guidance on aircraft and equipment sales; forecasts were much lower than expected, and that's kept interest pretty tepid.

That's going to be the key to unlocking some profits on a trade that I think Wall Street just isn't looking for right now… Full Story

That's going to be the key to unlocking some profits on a trade that I think Wall Street just isn't looking for right now...

How to Safely Profit on the Next GameStop

Unless you've been camping on Mt. Everest this week, you've heard the deal with GameStop.

The company had been on deathwatch since 2019, and it didn't do as well as other pandemic-era "comebacks"… until the Internet got hold of it. The price action has been just absolutely bananas over the past week or so, as momentum has gathered. In the five minutes since I started to type this, the price has yo-yoed in a $50 range.

GameStop has been a short squeeze of massive proportions, but as of Wednesday, the two biggest short positions, run by Melvin Capital and Citron Research, have been covered and closed. Finito. Andrew Left, the CEO of Citron – which really likes to short stocks – said his traders had covered their short at $90 and taken a 100% loss.

Without the big shorts, there's just no mechanical reason for this rally to continue. It's like a car with the gas light on – you might make it a couple more miles, but one way or another, you're stopping. It could be a matter of hours before those Internet-based investors realize they've bought big into a company that, for all the hype of the past few days, is still a really troubled operation on deathwatch.

Here's the thing, though… GameStop is only the biggest, most famous of these stories right now. Reddit, TikTok, and other social media-based investors have targeted other big Wall Street shorts out there.

I've made a list I'll share with you in a second, and I'll tell you how to play them.

Like I said the other day, cooler, calmer heads have a chance to sneak in the back door, safely pocket some gains, and get out again before anyone realizes what's happened… Full Story

Like I said the other day, cooler, calmer heads have a chance to sneak in the back door, safely pocket some gains, and get out again before anyone realizes what's happened...

Biden's Move Could Put 50% or More in Your Pocket

A change in D.C. is the perfect time to make sure your investing and trading posture is lined up with trends the government really drives with the federal budget and new policy.

Or, if you want to put it another way, when $4.8 trillion starts talking, it pays… a lot… to listen.

Earlier this week, President Biden committed to taking the entire federal fleet "green" with electric vehicles, or EVs – American-made EVs, to be precise.

Big slices of the private sector have been making similar moves for a year or two now, moving to EVs or "clean-ish" natural gas power, so really, this is Uncle Sam playing catch-up. In the long run, it is cheaper and they do reduce harmful emissions, and it jives with the Biden administration's stated "Made in America" policy, too.

Turns out, it takes a lot of vehicles for the government to do its thing. Now, just to be clear, I'm talking about the cars and trucks you sometimes see out and about with tags that read "U.S. Government" – I'm not counting hundreds of thousands of military vehicles like tanks or Humvees.

At last count, the federal vehicle fleet was thought to be around 645,000, and in some cases, the government's going to have to move pretty quickly to replace them.

Take the U.S. Post Office, for instance. We all recognize the Northrop Grumman-made "Long Life Vehicles," or LLVs that mail carriers work their routes in. Well, the LLV design isn't living up to its name, because it's getting on 30 years old at this point; they're said to be breaking down and catching fire on the regular.

In other words, the spend is going to have to come quickly, and it is going to have to be big.

There are two big-money trends at work here – electric and self-driving vehicles (SDVs). There are two companies "in play" in this story, one of which I think is a juicy takeover target. When the trigger gets pulled, takeover targets typically experience fast, intense bull runs.

Here's how you could find yourself in the right place at the right time, sitting pretty… Full Story

Here's how you could find yourself in the right place at the right time, sitting pretty...

This "Short Squeeze" Options Trade Could Pop After Feb. 11

So far, 2021 is already shaping up to be great for traders.

Two days after the Nasdaq and S&P 500 reach all-time highs, the bears ravaged the market for its biggest loss in three months on Wednesday.

Short-sellers are getting crushed and even some the big tech leaders – like Apple Inc.

(NASDAQ: AAPL) and Tesla Inc.

(NASDAQ: TSLA) – are in play with huge moves higher and lower.

In other words, volatility is back and that makes this a great market for options traders.

Not only that, but earnings season is here and that is usually a major catalyst for stocks.

One of the themes Money Morning's Quantitative Specialist Chris Johnson has identified for this season is the rebuilding of America.

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And nothing supports that effort like the raw materials industry...

What Every Investor Needs to Know About GameStop

The GameStop drama is clearly a short squeeze of historic proportions.

And it's got a lot of regular investors worried that this whole episode might mean the market's turned against them.

But Shah's telling you not to worry, and he's broken down the whole situation for you right here….

Read more...