NKLA

Trading Strategies

The Smartest (and Most Profitable) Way to Play the Recent Tesla Snub

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After a historic rally of 1,000% over the past year, Tesla has hit a bump in the road.

You see, S&P Dow Jones Indices rebalances its indexes every quarter. A company needs to meet specific qualifications to be considered, including four consecutive quarters of profitability. So, investors eagerly await to see what stocks get added and removed when this time rolls around.

And many expected Tesla to be listed on the list of new stocks being added to the S&P 500 – so imagine the panic when Tesla didn't make the cut.

The decision not to add the stock to the S&P 500 surprised the entire market, especially those waiting for weeks on this decision, excited after Tesla reported a second-quarter profit in July. Tesla had ticked off many of the requirements needed to be considered for this index.

Tesla is now among the top 15 largest companies in the United States when measured by market capitalization – sitting at $320 billion. This makes the electric car marker the size of long-standing giants like Nvidia. And at one point, Tesla grew to be the seventh-largest company in the United States.

But size isn't all that matters when it comes to the S&P 500.

Unlike other benchmarks, the S&P 500 isn't driven by a strict set of rules or qualifications. Instead, the benchmark relies on a committee to decide what gets added and removed. Ultimately, Tesla didn't satisfy the S&P 500 committee.

And this snub didn't bode well for the electric car maker's stock. Tesla shares were down 19% in early trading Tuesday, wiping out more than $70 billion in market value.

Before you jump at this new price tag, there's something I want you to know. There's a way you can play this TSLA snub scenario for the most profits… Full Story

Before you jump at this new price tag, there's something I want you to know. There's a way you can play this TSLA snub scenario for the most profits...

IPOs

SPAC ("Blank Check Company") Investing Guide

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Special purpose acquisition companies (SPACs) — also called "blank check companies" — have surged in popularity this year.

That's because they are formed solely for the purpose of buying private companies and taking them public, giving their shareholders the first crack at owning exciting new companies before the IPO.

We're going to share more about how this works in a moment.

We'll also help you learn how to invest in SPACs.

Read more...

IPOs

The Best SPAC Stocks to Buy Right Now Can Triple Your Money

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Special purpose acquisition companies, or SPACs, have been all the rage with investors this year.

These special companies give investors a new way to invest in IPOs and some of the hottest companies on the planet.

Even better, investors have the chance to reclaim their investment if they don't like the deal their SPAC makes.

As usual, there's more to the story than that, and we're here to help.

To help you understand what these investment vehicles are and whether they're worthy of your money we're taking a deep dive into them today.

We'll show you exactly how these investments work and we'll show you the best SPAC stocks to buy now too.

Read more...

Trading Strategies

How to Profit from the Massive Mobile Investing Trend

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The only constant in life is change. That goes double for markets: Investing, just like everything else, evolves.

The latest evolution has, for some folks, turned investing into something like a video game…

Armed with a smart phone and their trading app, tons of new investors are taking the markets by storm. No kidding – it's not a bit unusual these days for friends of mine to whip out their phones and buy shares of stocks that they've never heard from outside of a mention on Twitter, or some other 24/7 social media feed.

I hate to say, "When I was your age," but when I was growing up, investors would thoroughly research the fundamentals and technicals of a stock before moving hard-earned money into it. More recently, they'd at least plug the ticker into a search engine to get some insight to what they're buying.

Nowadays, though, it seems that if "RealK1ttyL0ver77" posts on their Twitter account to buy shares of "Kitten Mittens Holdings Ltd." because they're "real dope," people buy big, and before you know it, Kitten Mittens jumps 700%.

It's all about what the crowd is doing, and that has major downside.

A real-life example would be Hertz Global. Investors, who looked at a sub-$1 stock and saw a bargain, piled in by the busload. The stock rallied 700% even as its (inept) management team was dotting the i's and crossing the t's on the bankruptcy filing!

Sometimes there are real bargains… and sometimes cheap is cheap for a good reason – but that's a truism that seems to have been forgotten for the moment.

Now, don't get me wrong: I'm not knocking new trading apps or their new legions of users. I think it's fantastic that a new generation of investors – who, you could argue, have been clobbered by both the 2008 financial and the 2020 coronavirus crashes – are accessing the massive opportunities the markets provide.

More investors in the market means that there is the opportunity for more robust, fairer pricing.

More dynamic markets also means that more ideas are going to flow through the daily narrative. Simply put, crowdsharing of investment ideas means that you're more, not less, likely to find an investment that fits your risk and objective profile.

I'm a hardcore optimist. I've found ways to harness this huge momentum shift for everyone reading today, whether you're a new investor or an old hand.

You're going to be able to make better decisions on platforms like Robinhood and learn how to leverage the crowd's activity on there for maximum profits… Full Story

You're going to be able to make better decisions on platforms like Robinhood and learn how to leverage the crowd's activity on there for maximum profits...

stocks

Markets Live Recap: Stocks Close Down Despite Powell's Statement

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The S&P 500 and Dow Jones were both down in early market trading as investors continued yesterday's sell-off.

Then, Jerome Powell said the U.S. Federal Reserve intends to keep interest rates near zero through 2022.

And he expects GDP to expand by 5% in 2021.

Stocks rallied across the board on the back on the announcement by the Fed Reserve Chairmen.

But only the Nasdaq closes the day in positive territory – up 1.2% and closing at a record high.

The S&P 500 was flat and the down was down 0.6%.

Here's what our experts – Chris Johnson and Shah Gilani – saw live at the open and close of the trading day.

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stocks

Markets Live Recap: The Nasdaq Breaks Above 10,000 for the First Time

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Investors mostly paused their buying spree today as the Dow snapped its 6-day winning streak.

Concerns that the recent rally is overbought could be valid, but tech stocks couldn't be stopped today.

The Nasdaq touched 10,000 for the first time in intraday trading and closed 0.3% higher.

But the S&P 500 closed 0.8% lower and the Dow fell 1.1%.

Here's what our experts - Chris Johnson, Tom Gentile, D.R. Barton, Jr., and Shah Gilani - saw live at the open and close of the trading day...