Thursday, January 14, 2021

🤓 Is This a Sign of an Overhyped Stock Market?

Good morning. Let's be honest, there have been a lot of crazy tweets so far this year. You might..
It's the monthly jobs numbers today and they're not going to be pretty and will be possibly the tip of the iceberg as we head into May.
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Good morning. Let's be honest, there have been a lot of crazy tweets so far this year. You might have missed the one from billionaire Elon Musk about ditching traditional social media. The world's wealthiest man tweeted to "Use Signal," a rival to the WhatsApp messaging system. Traders picked up on the tweet, and bought shares… of unrelated company Signal Advance (SIGL). The micro-cap health care tech company saw its size balloon from a $7 million valuation to $100 million before the trading deluge peaked out.

Now that shares have given back most of that move, it might be wise to look out for other micro-cap companies whose name can get confused with a bigger, yet unrelated name. Or, better yet, some enterprising fund manager should solicit capital to start a fund with all such names to capture those 1,000% profits when other traders blindly pile in. Buy buyer beware: This is the kind of confusion that sets in when traders are on the hunt for big profits, a caution-to-the-wind attitude that tends to occur near market tops.


Now here's the rest of the news:

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Experts Say It's "One of the Most Disruptive Stocks in the World!"
"Sadly, most Americans are investing in the wrong place. There is a new stock market full of opportunity. A place where the biggest gains are yet to be made. Yet few know about it," says leading technology expert Ian King. This is why King just issued an urgent buy alert on a disruptive tech stock that's leading the charge.

Details here…


MARKETS
DOW 31,060.47 -0.03%
S&P 3,809.84 +0.23%
NASDAQ 13,128.95 +0.95%
*As of market close
Stocks traded mixed on Wednesday, with a slight dip in the Dow.
Gold rose 0.3 percent, with the metal closing at $1,849.
Oil prices declined 0.5 percent, closing the day at $52.96 per barrel.
Cryptocurrencies generally rallied, with Bitcoin last at $36,226.

Today's TOP TIPS
Low Expectations Can Drive High Returns
One common investment theme is a reversion to the mean. That's a fancy way of saying that stocks that have outperformed the market will often come back down. And stocks that have underperformed the market will have their time to shine.

With a big rally in tech now spreading to energy and the banks, a number of stocks have still avoided making new all-time highs. One area in particular looks interesting thanks to its low expectations: The defense sector.

» FULL STORY

Insider Trading Report: Martin Midstream Partners LP (MMLP)
Robert Bondurant, President and CEO of Martin Midstream Partners LP (MMLP), recently bought 1,158 shares. That increased his stake by 1 percent, and came to a cost of $1,600. He was also joined by director Ruben Marin, who bought 1,172 shares at the same price, increasing his holdings by 0.03 percent.

Insiders have been regular buyers of shares at the small-cap energy producer in the past year, often in small amounts of a few hundred to a few thousand shares at a time.

» FULL STORY

Unusual Options Activity: Target Corporation (TGT)
Shares of big-box retailer Target Corporation (TGT) have rallied in the prior weeks. Yesterday, the company reported a strong holiday season with double-digit same-store sales. One trader sees shares moving even higher.

That's based on the July 2021 $230 call options. With shares around $197, it would mean a further 17 percent rally in shares in the next 183 days. Over 2,100 contracts traded against a prior open interest of 147, for a 20-fold rise in volume.

» FULL STORY

IN OTHER NEWS
Consumer prices ticked up last month thanks to higher gas prices.
Ski tourism faces a sharp contrast this year with some properties open and some not.
Target reports a same-store sales rise of 17 percent.
Johnson & Johnson's Covid vaccine is hitting production snags.
Intel shares rally as CEO Bob Swan announces he will step down.
YouTube suspends President Trump's channel.
Citing regulatory concerns, Visa will not acquire Plaid.
Amazon replies to Parler's antitrust lawsuit against the social media company.
In earnings, KB Home beats on higher revenues.
Pfizer shares drop as the company lowers its guidance ahead of earnings.

S&P 500 MOVERS
TOP
MAC 7.107%
INTC 6.968%
COO 6.634%
WELL 4.452%
WHR 4.173%
BOTTOM
FTI 7.794%
GPS 4.592%
MRO 4.172%
NOV 4.063%
ROL 3.975%

Quote of the Day
In 2021, the U.S. economy should experience strong tailwinds from additional fiscal and monetary stimulus coupled with an end to the pandemic's impact on the economy. Pent-up demand in industries impacted by COVID-19 ... and a needed inventory rebuild should further spur job growth.
- Brent Schutte, chief investment strategist for Northwestern Mutual Wealth Management, on why the economy will likely have a strong year.

Sponsored Content
Experts Say It's "One of the Most Disruptive Stocks in the World!"
"Sadly, most Americans are investing in the wrong place. There is a new stock market full of opportunity. A place where the biggest gains are yet to be made. Yet few know about it," says leading technology expert Ian King. This is why King just issued an urgent buy alert on a disruptive tech stock that's leading the charge.

Details here…


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