Category

COVID-19 Stock Market Crash

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...

Oil

Reality Gap of the Week

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

The OPEC oil cartel and other oil-producing countries, mainly Russia, spent most of last week hashing out a deal to cut oil production and put an end to oil's 60% price drop.

Under the so-called OPEC+ umbrella, the group finally agreed to a deal over the weekend.

Oil futures shot up, but fell back before trading Monday.

Oil opened up, but then fell.

That's because there's a huge Reality Gap between what the oil deal needed to do, and what it actually entails.

Here's D.R. with the details...

The Fed

The Fed's Latest Surprise Gives You a Big Profit Opportunity This Week

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

Traders woke up Thursday morning thinking 8:30 a.m. was going to set the mood for the day. That's when the Department of Labor was scheduled to release its weekly number of new unemployment claims made the previous week.

As it happens, the numbers were awful, at 6.6 million new applicants. That's in addition to the 6.9 million the week before, and 3.3 million two weeks prior.

In other words, an astonishing 16.8 million Americans have lost their jobs in just three weeks. That beats the records set during the Great Depression by several times over (of course, the U.S. has a much larger population now – but still…)

This weekly number was also way worse than expected, with analysts estimating something between 3 million and 5 million new claims.

But instead of dropping, markets opened up more than 1.5%. It's as if 6.6 million people losing their jobs in a single week won't affect companies negatively.

Well, in the short term, that may be the case. Because at almost the same time that the Department of Labor released its data, U.S. Federal Reserve Chair Jerome Powell went on air.

What he announced sent pre-market trading skywards. It was yet another stimulus plan, for another $2.3 trillion.

This time, the Fed will be guaranteeing loans made to states and municipalities, and also to households.

But the most important piece of the announcement has the Fed doing something it has never done before…

And it sent one part of the market up three times more than the Dow.

Should you jump on the bandwagon? Here's what I think… Full Story

Should you jump on the bandwagon? Here's what I think...

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

This Double-Your-Money Tech Stock Is a Perfect Play for the Current Market

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

Investing icon Peter Lynch had a key tip for investors who were looking to cut through the uncertainty to find winning stocks.

His advice: Invest in what you know.

It's a great bit of advice – even when talking about tech stocks.

And it's a great bit of counsel.

In a wild-and-wooly market like the one we're navigating now, focusing on a company whose products, services, and technologies you know, like, and use can give you one heck of a competitive advantage: You'll zero in on discount stocks before the deep-pocketed investment pros even realize there's a bargain to grab.

Today, I'm going to tell you all about one such tech play. It's a company I've been following for more than 30 years. And I've been using its technologies for almost as long.

In short, I'm going to tell you all about a stock that I know.

And I'll do more than just tell you about the company. I'm also going to walk you through the five "screens" that explain why this beaten-down tech leader should be on your personal "watch list" right now.

By the time we're done, if you decide to move on this stock, you'll be investing in what you know, too… Full Story

By the time we're done, if you decide to move on this stock, you'll be investing in what you know, too...

Trading Strategies

Why the Pandemic – and the E-Sports Trend – Just Supercharged a Favorite Wealth Play

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

Thanks to the coronavirus pandemic, this year's sports seasons – pro and college – tumbled like dominos.

When the NBA announced it would suspend its season, the NCAA basketball "March Madness" tourney had actually started (St. John's and Creighton played a full half). The NHL stretch run was poised to be among the most exciting in years.

Major League Baseball players were playing Grapefruit League games when the season was put on hold and players sent home (initially an act of mercy since my team, the Pittsburgh Pirates, was as lousy as expected). The PGA canceled a slew of events and said the Masters in Augusta was postponed.

NASCAR launched its season, ran its first four races – including hallmark Daytona 500 – said it would continue without fans, and then reversed course and postponed events until further notice. And the 2020 Summer Olympics were postponed – they'll now be played in 2021.

You don't fully realize just how important something is in your life until it's taken away. And sports of all types fill the bill. We watch sports on TV, stream them on our phones, watch them live with friends, play them ourselves, watch our kids play, and often coach them, too. And the hardcore fans among us read about them – incessantly.

When something like that is taken away – especially when it's taken away instantly – well, it creates a dark chasm that's impossible to fill. I mean, how many "NFL mock draft" stories, videos, or podcasts can you handle?

But something very interesting just happened as a result of this "sports outage." One pro sport took a flier, conducted a broadcasting experiment, and ended up with a smash hit on its hands. And that "hit" has made me more confident than ever about one stock to buy for your long-term portfolio – right now.

Let me share the story of this "experiment," the billion-dollar trend it ignited, the name of the stock – and why this spotlights a hefty upside for this tech firm… Full Story

Let me share the story of this "experiment," the billion-dollar trend it ignited, the name of the stock - and why this spotlights a hefty upside for this tech firm... Full Story

Options

This Robinhood Options Trade Can Double Your Money on Retail's Tumble

By , Money Morning - • Print | Email

You see the market soaring and diving day after day.

It seems like everyday we're seeing swings of 1,000 points or more in the Dow.

This might seem like a time to steer clear of the markets, but some people are making a fortune.

Why not you, too?

Right now, with the market's unprecedented volatility, we've been showing our readers how to make the best Robinhood options trades to cash in on these price swings.

And we're giving you another one today...