Category

COVID-19

Earnings

Follow These Rules to Profit from This "Trading Range" Market as Earnings Come Out

By , Quantitative Specialist, Money Morning - • Print | Email

My glasses almost fell off my face Monday night when I read this headline from Bloomberg…

"ETF Investors Are All-In on Stimulus with $17 Billion Stock Bet"…

That's right. Investors have pumped more than $16.5 billion into stock exchange-traded funds in just seven trading days in April.

The article stated that the "torrid" pace put inflows on track to exceed December's monthly inflow total of $42.5 billion.

Talk about a crowded trade…

What's happening right now is a toxic combination of analysts saying, "The bottom's been put in!" and also, "Buy the dips!"

Yes, you can start to buy in. Slowly. Use dollar-cost averaging and buy in increments.

But going all in… Well, there's a reason the great Wayne Gretzky said to skate to where the puck is going, not where it has been…

That's exactly why the last time I saw this happening, in December, I bought puts. And they paid off heavily in January and February, such as my 47.87% January gain on FedEx and my 108.57% February gain on Tilray.

The truth of this market is that there's still too much uncertainty, fundamentals are questionable, and technicals are pointing to the downside.

This type of long bet – with people throwing money into the market with coal shovels because it's been climbing for a few weeks- tells me one thing: We're still in the first stage of the market pullback.

So instead of going all in, you trade. Just like I did before. And when you follow these trading rules, you can profit… Full Story

So instead of going all in, you trade. Just like I did before. And when you follow these trading rules, you can profit... Full Story

Options

3 Stocks to Short Before the Pandemic Earnings Season

By , Money Morning - • Print | Email

The first earnings season since the pandemic shuttered the U.S. economy will show us the true extent of the economic damage caused by COVID-19.

It's not going to be pretty.

The bad news is going to come in waves, just as traders are starting to think the worst of the pandemic is behind us.

That may or may not be the case, but we don't yet know the full extent of the economic destruction.

This earnings season will pull back the curtain on that.

And some stocks are going to fall even lower.

Read more...

Trading Strategies

Decoding the Stimulus: Follow These "Money Flows" to Get a View of Our Future

By , Chief Investment Strategist, Money Morning • @ShahGilani_TW - • Print | Email

Our Capital Wave Strategist Shah Gilani has made expert money-flow reads time and again.

So as the U.S. economy and the global financial markets face their biggest possible threat in a century, Bill asked Shah to offer another money flow "read" – and to give Money Morning readers a "spoiler alert" on where the coronavirus pandemic narrative is headed next.

So as the U.S. economy and the global financial markets face their biggest possible threat in a century, Bill asked Shah to offer another money flow "read" - and to give Money Morning readers a "spoiler alert" on where the coronavirus pandemic story goes next. Take a look...

China

Two Big Reasons Why COVID-19 Is Being Called the Wuhan Virus

By , Chief Investment Strategist, Money Morning • @ShahGilani_TW - • Print | Email

Just because the World Health Organization officially named the disease caused by the novel coronavirus COVID-19, that doesn't mean it's not going to be referred to as the Wuhan virus, the Chinese coronavirus, or other names that stamp the origin of the virus into the public lexicon.

One reason for what some observers see as politically incorrect name-calling is, in fact, pure politics.

The President of the United States, some members of his administration, and other politicians are stamping "Made in China" all over the virus because identifying China as the virus's place of origin stigmatizes China geopolitically, with the intention of undermining China's increasing global influence.

Another reason the world's going to be hearing more about the Wuhan or Chinese virus is that lawsuits are being filed blaming China for accidental or deliberate gross economic destruction.

A $20 trillion class-action suit filed in the U.S. District Court for the Northern District of Texas alleges the COVID-19 virus is a biological weapon designed by China. And by releasing it, China violated U.S. law, international laws, treaties, and norms and caused massive economic damage to U.S. individuals and businesses.

Here's why in politics and law, sometimes names matter… Full Story

Here's why in politics and law, sometimes names matter...

Technology

Grab Your Share of This $231.9 Billion Industry with These Coronavirus Scam Defense Plays

By , Defense + Tech Specialist, Money Morning • @Robinson_STI - • Print | Email

You are likely unfamiliar with the plight of Frank Krasovec – it got very little traction.

He is hardly a household name. Frank Krasovec serves as the chair of Dash Brands Ltd. The privately held firm owns Domino's Pizza franchises in China.

Krasovec was the victim of financial fraud costing him nearly half a million dollars. According to a recent report in The Wall Street Journal, he was the perfect victim.

The short version: Krasovec took on a $1 million personal line of credit from a local bank in 2018. He went on a business trip a few months later.

When he got back, he was stunned to learn that $450,000 of his money had vanished. Hackers had used his e-mail address to get an unsuspecting employee to send them that amount by wire transfer.

I'm bringing this up now because often in times of crisis, hackers get to work. We may see them coming at us with phishing e-mails seeking donations to help those stricken with the virus when, in reality, they want to rob us blind.

The privately held cybersecurity company, Agari, issued a warning in late 2018 about California wildfire e-mail scams. The emails purported to come from corporate executives asking employees to make donations, which were actually intended to fatten the bank accounts of hackers.

In other words – you should also be extra cautious about your online presence, especially your e-mails and credit card accounts.

There's also an incredible opportunity here for cybersecurity. This marks a moment for the sector to become even more vital to our existence now that millions have shifted their lives online.

For investors… there's a way to cover the entire waterfront of this sector with one single investment, set to outperform the market for years to come… Full Story

For investors... there's a way to cover the entire waterfront of this sector with one single investment, set to outperform the market for years to come... Full Story

Options

How to Trade This Market Volatility in 3 Simple Steps

By , Money Morning - • Print | Email

Stocks have been moving dramatically nearly every day.

The Dow Jones Industrial Average saw a three-day bull run last week, from around 18,000 to above 22,000.

The next day, it fell 700 points.

Who knows where it will be this week?

While this volatility hasn't been great for many 401(k) or retirement portfolios, Money Morning's options trading specialist, Tom Gentile, sees an opportunity.

He has an options trading strategy to help you cope with high volatility and high options prices.

Read more...

Trading Strategies

These Five Signs Will Show When Stock Markets Are About to Bottom Out

By , Technical Trading Specialist, Money Morning • @DRBarton_Stocks - • Print | Email

Last week gave hope that stock markets had found a bottom, with a three-day rally that brought the Dow up over 20% from Monday's close through the end of Thursday's session.

However, stocks fell sharply on Friday, giving back some of the previous three days' gains from news that the U.S. has now become the country with the most confirmed coronavirus cases.

So the question remains: Are we at the bottom? And what will tell us that the market is making an investable bottom – one that will hold for more than a week or two?

Here are five clear signs our D.R. Barton's looking for to identify when the markets will bottom out...

Trading Strategies

Help Your Country and Your Portfolio with These Three Bond Plays

By , America's No. 1 Pattern Trader, Money Morning • @powerproftrades - • Print | Email

Suffice it to say, this week's market rally has been a welcome respite from a month-long (though it feels longer) market free fall. But it's important to keep things in perspective.

While the market might continue its rally for a few more days, I wouldn't be surprised if it doesn't stick. We've entered a bear market environment, and any rallies we see from now on like we did this week will most likely be followed by severe drops. Especially as we get more news on growing infection numbers and a suffering economy.

And that's why I wanted to take a moment to talk to you folks about one of the perfect plays for a bear market. This will keep you ahead of the volatility still to come.

You see, bonds often get a bad rap.

A treasury bond is a government debt security that you can buy and sell just like a stock. But it offers lower yields, making it a much less attractive investment.

What many people don't know is that bonds are actually a vital source of revenue. They help to keep the lights on for governments, states, and corporations…

And they offer an ideal safe haven in bearish market conditions.

With all three major indexes down more than 20% from their recent highs, markets have officially entered bearish territory – making now the perfect time to get into bonds.

You don't have to worry about lower yields, either.

With bonds, you can come to the aid of your country, profit from rising prices, and dramatically increase your annual returns… Full Story

With bonds, you can come to the aid of your country, profit from rising prices, and dramatically increase your annual returns... Full Story

market crash

Was That the Shortest Bear Market Ever or a Bull Market Trap?

By , Money Morning - • Print | Email

By yesterday's close, stocks had gained 21% in the last three days, making that the shortest bear market on record.

The Wall Street Journal coronated the end of the three-day rally by declaring that "A new bull market has begun."

Now that we're at the start of a new bull market, it's time to dive into stocks again, right?

Not so fast.

This has all the signs of a classic bull market trap.

It's something we've been warning investors about this week.

"Head fake" rallies are a common feature of bull markets.

This one's no different.

All signs point to markets and the economy getting even worse from here...

stocks

The 2 Best Value Stocks to Buy Today

By , Associate Editor, Money Morning - • Print | Email

The stock market has been an absolute roller coaster over the last few months.

The Dow Jones Industrial Average has fallen more than 30% from all-time-highs, and we haven't even reached the bottom yet.

Is it time to sell?

No. And here's why.

Read more...