GM Goes Electric, Rotten Robinhood and Apple’s Delicious Core

Friday Four Play: The “Detroit Shock City” Edition A long, long time ago… I can still remember when General Motors (NYSE: GM) used to make me smile. And I knew if they had their chance, that they could kick Tesla (Nasdaq: TSLA) in the pants, and maybe investors would be happy for a while. But electric vehicle (EV) dithering made me shiver with every press conference they’d deliver. Bad news on the doorstep, I could buy one more share. But yesterday’s news touched me deep inside. It was the day … the combustion engine … died. Oh my, my Tesla’s[…]

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The GameStop Trade That No One’s Considering

The equity markets are getting angsty amid the heart of earnings this year-end season with blue-chip profit pulling and crazy WallStreetBets (WSB) driven short squeezes. There is quite a bit of froth in the market today, with stir-crazy speculative retail traders driving volatility higher. The Millennial and Gen Z driven Reddit message board, WallStreetBets, has created a 6+ million herd (up from less than 2 million 2 weeks ago) of small traders that decided they would use their extra vacation/stimulus cash to ‘stick it to the man’ (aka Wall Street hedge funds)…digitally. This new cohort of traders decided they would[…]

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Why Sentiment Is Important in the Stock Market

When investors look at stocks, their analysis is biased by how they feel about the economy or the company. By admitting this bias exists, they can develop insight into how the market really works. In today’s video, I explain why that insight can lead to a market-timing tool that has a high probability of success. (If you’d prefer to read a transcript instead, click here.) Regards, Michael Carr, CMT, CFTe Editor, One Trade Powered by WPeMatico

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How Options Trading is Fueling the GameStop Rally

The recent meteoric rise in shares of brick-and-mortar video game retailer GameStop Corp (GME) has been one of the most interesting stories so far in 2021. GameStop shares had spent the previous five years drifting steadily lower even as the broad markets made impressive gains. The increasing ease with which video game enthusiasts could download games to play – rather than purchasing hard copies from a store – seemed to portend a slow slide into irrelevance if the company didn’t change course. The share price had slipped from around $30 in 2016 all the way to near $3 last Summer[…]

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WallStreetBets: The Big Short-Squeeze

A Reddit message board called WallStreetBets (WSB) is legally ‘manipulating’ stocks in the market while being protected by the 1st Amendment (aka Freedom of Speech). The latest target of this Millennial & Gen Z driven trading blog has been GameStop (GME), which will go down in history as one of the biggest short-selling upsets ever. GME is up over 600% in 9 trading days. Short sellers have lost more than $6 billion on a company whose market value was only $1.2 billion two weeks ago. There were no other perceivable catalysts for this GME rally other than RC Venture’s (a[…]

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Apple & Microsoft Will Set The Pace For Big Tech Earnings

The two most valuable publicly-traded companies in the world will be releasing their final earnings this week to sum up 2020’s dystopian year. The global pandemic has pushed the world economy to digitalize what would have taken years in a matter of months. Businesses and consumers have been forced to function remotely, which has set in motion a wave of digital advancement in every market sector, driving shares of innovative tech enterprise to the moon. Apple (AAPL) and Microsoft (MSFT) stock both had stellar years in 2020, with 79% and 38% returns in the past 52-weeks. These robust rallies are[…]

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SPACulation Part 2

SPACs are running rampant in the market today, with over 250 “blank check IPOs” generating $79 billion in value in the past 52-weeks. According to a CNBC interview with Jim Chanos, founder of the Kynikos Associates, around $2 billion in value is being created daily by these IPO shell corporations (as of mid-January), which equates to $500 – $600 billion annually. These investment groups are racing to get their respective SPACs on the market before the market euphoria deflates. I would be cautious with SPACS as shady dealing can occur. Without the proper institutions underwriting and valuing these businesses, they[…]

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SPACulation Part 1

A SPAC stands for special purpose acquisition company, and its special purpose is to go public with the promise of purchasing a real business at some point in the future. When the SPAC finds a suitable business, it then merges with the privately held enterprise and changes their ticker to bring them to the markets rapidly, but not without taking a big chunk for themselves out of the deal. This form of public offering makes it easier and faster for businesses to hit the public exchanges without going through the stringent IPO process that can take months. SPACs are also[…]

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3 Undervalued Strong Buys

This doesn’t seem like a time for value, does it? The major indices are at or approaching all-time highs as we are hopefully heading for a big recovery once this pandemic ends. Who wants to invest in value when there are stocks just waiting to take off after a solid year of “social distancing”? Smart investors, that’s who. Undervalued stocks may not stay undervalued for long, especially if they’ve got a high Zacks Rank. These are the stable names that could be among the biggest beneficiaries of a return to normal. And we’ve got a screen that will help you[…]

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The Fed’s Actions Will Boost These 2 Sectors

Here we go again… Get ready for more headlines over another stimulus package. Congress has reconvened with a busy schedule over the next couple of weeks. First, lawmakers must reach a deal by the end of next week on a new spending plan to fund the federal government or risk a shutdown. They must also try again to hammer out a new fiscal stimulus plan. Their pre-election effort provided plenty of market-moving developments, but no deal. Now, as I write this, there are no fewer than three separate proposals in circulation. It’s anyone’s guess if we’ll end up with a[…]

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