The Red Hot IPO Market May Burn You

The 2020 IPO market is red hot this month, as retail investors take on an aggressive investing approach. There seems to be endless risk-on appetite driven by young trader/investors who want to get on the ground floor of hot new stocks as the wind in blue chips’ sails seems to be dying down. The Renaissance IPO ETF (IPO) has surged 23% year-to-date, pushing the innovation-driven ETF to all-time highs. This ETF’s holdings are primarily made up of 2018 and 2019 IPOs, but we are beginning to see more 2020 IPOs join the ranks as the fund phases out 2018 debuted stocks.[…]

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Where Did This Rally Come From And Can It Continue?

We are in a medically induced global economic downturn, yet the stock market is responding as if our decade-long bull run is still underway. The Nasdaq 100 is sitting at all-time highs, and the S&P 500 flipped positive for the year. The markets have been backstopped by the Federal Reserve’s unprecedentedly dovish monetary policies, but does it warrant this insane market rally? The economically devastating COVID has given well-positioned tech companies a rare tailwind, which has driven most of this V-shaped recovery in the equity markets. What will it take to keep the stock surge rolling? Speculation Driving The Markets[…]

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Stocks Look to Take A Break

The recent run higher in stocks over the last few weeks looks to take a break, as the S&P futures are trading under the 3200 level, currently just under 1%. A couple of small factors are adding up to create the negative tone. In Asia, we saw some tensions flare up in the Korean Peninsula as North Korea completely cut off communications with South Korea. Additionally, trade tensions with China and Australia are intensifying and the China/Taiwan headlines are becoming louder. In Europe, Germany exports were down 25% month over month in April. Here at home, we are seeing a[…]

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3 Stocks to Buy on Strong Pandemic Demand

It would have been frivolous to run the Zacks #1 Rank Uptrends screen a couple months ago. Looking for upward price momentum during the sharpest and quickest descent into a bear market? What’s the point? But that was then, and this is now. Since that late March low, each of the major indices have roared back by more than 40%! So its suddenly the perfect time to look for stocks that are enjoying strong buying demand and are within stringing distance of new highs. Below are three stocks that recently passed this screen’s test. However, there are now dozens of[…]

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4 Factors Driving The Stock Market Higher

Analysts and investors are racking their brains, trying to figure out how the Nasdaq 100 (QQQ) is trading at all-time highs, and why the S&P 500 is only down a few percent for the year with unemployment figures reaching depression levels. There is no doubt that the unprecedented level of fiscal and monetary stimulus has backstopped the equity markets and began this extraordinary rally, but what continues to drive it? There are numerous reasons, all adding their part to the markets over 40% surge since March 23rd.  The most significant catalyst for the continued stock market rally is the reopening[…]

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Traders Eye S&P 3100

The sentiment in the market is a polar opposite of what many people are seeing in their neighborhoods and on their TVs. While protesting rioting and looting continues, the market grinds higher, hitting levels not seen since February. S&P futures are trading higher by 0.40%, as all eyes will be on 3100 today. The bulls keep pushing and the path of least resistance is higher. While the S&P drifts upwards, tech stocks continue to rip. Since the March panic, the Nasdaq has been the leader, which has helped pull the rest of the market higher. The Nasdaq 100 futures contract[…]

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Lockheed Martin (LMT) Vs. Raytheon Technologies (RTX): Win Win?

With the US in chaos, it is becoming increasingly difficult to justify stock purchases at our stretched stock market levels. Still, many investors are afraid that they will miss out on a continued rally that has been driven by the Federal Reserve’s ostensibly endless money printers and US state economies reopening. I see some unique opportunities within the aerospace & defense sector, which could provide your portfolio with robust long-term returns. My Defense Recommendations: Lockheed Martin (LMT) Lockheed is a defense powerhouse with a fortress of a balance sheet and reliable government contracts that keep on growing. The company has[…]

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Merck (MRK) Shares Looking Ripe For A Buy

The US is in chaos with civil uprisings across the country, while the world is suffering through an unprecedented pandemic. With the equity markets stretched to the brim, it is getting difficult to justify many stock purchases. Yet, there are still a few diamonds in the rough, and I am not talking about the overly exposed industries like cruises or airlines, but something that is on the front lines of fighting this unprecedented health crisis. Joining the Race To Cure The Pandemic? Merck (MRK) is a pharmaceutical powerhouse that has been under-appreciated amid this health crisis. Its initial lack of[…]

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5 Tips to Help You Become a Better Dividend Investor

Since the market meltdown earlier this year, U.S. stocks have rallied hard and they have rallied fast. From March 23 lows, the Dow, S&P 500, and Nasdaq are up about 36.5%, 35.4%, and 38.3%. It’s a stunning surge, and indicates how much investors anticipate a fast recovery once the coronavirus pandemic ends. The Fed has pumped trillions of dollars into the economic rescue effort, and bets are being placed that this will help outweigh weak corporate earnings. But Wall Street’s quick turnaround fails to reflect the current dismal labor market (as well as other key economic factors). Another 2.1 million[…]

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3 Outperformers During this Challenging Earnings Season

Investors were biting their fingernails as this earnings season began during an unprecedented economic shutdown. But now that it’s mostly over… it really wasn’t that bad! Or maybe it’s better to say: it wasn’t as bad as it could have been. Now, it’s true that most of these quarters accounted for time before the closures began and many companies pulled their outlooks due to all the uncertainty. But we still saw an impressive amount of positive earnings surprises, which showed just how strong the economy was before all this craziness began. And as importantly, analysts are comfortable in raising earnings[…]

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