Thursday, June 30, 2022

🙃Don’t Be in a Rush to Buy This Dip – Here’s Why

Good morning. Many traders today have started well after the tech crash in 2000, and even after...
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.

Good morning. Many traders today have started well after the tech crash in 2000, and even after the housing market crash that ended in 2009. Consequently, they know that all investors have to do is "buy the dip."

In the long-run, that's usually true. Zoom out on any market and it goes up and to the right. Even big drops tend to look like bumps over time. But bear markets tend to last a lot longer than many expect. We may only be partway though. And as long as the Fed is continuing to raise interest rates, the trend will likely remain down.

The good news? Some of the markets biggest swings occur in bear markets. That's ideal for trading. It's also ideal for building the foundation of a portfolio that can grow in a bull market while also delivering solid income now, given the selloff in income-generating stocks.

Now here's the rest of the news:

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MARKETS
DOW 31,029.31 +0.27%
S&P 3,818.83 -0.07%
NASDAQ 11,177.89 -0.03%
*As of market close
Stocks traded flat on Wednesday, as investors remained concerned over economic growth.
Oil dropped 2.1 percent, closing at $109.41 per barrel.
Gold traded flat, going for $1,820 per ounce.
Cryptocurrencies traded weakly, with Bitcoin at $20,237 at the market close.

Today's TOP TIPS
Grab Income Plays in Today's Market While Prices Are Out of Favor
Investors loved growth stocks during the stock market rally. With stocks now in a downtrend, investors are now looking less towards growth and now towards safety. One way investors can find safety is by focusing on companies that pay dividends.

However, no dividend is alike. Income investors need to look at a stock's payout ratio, to ensure a company isn't paying out more than it's earning.

» FULL STORY

Insider Trading Report: DaVita Inc (DVA)
David Staffieri, COO at DaVita Inc (DVA), recently added 20,000 shares. The buy increased his stake by 18 percent, and came to a total cost of just over $1.55 million.

This marks the first insider buy at the company since late 2020. Insiders have been consistent and sizeable sellers of shares over the past three years, with only a few modest insider buys in total.

» FULL STORY

Unusual Options Activity: Cleveland-Cliffs (CLF)
Shares of iron ore producer Cleveland-Cliffs (CLF) have shed nearly half their value in the past few months. One trader sees a much bigger decline playing out over the next year and a half.

That's based on the January 2024 $5.00 put. With 568 days until expiration, 10,010 contracts traded compared to a prior open interest of 164, for a 61-fold rise in volume on the trade. The buyer of the puts paid $0.41.

» FULL STORY

IN OTHER NEWS
US GDP Shrank More than Expected in the First Quarter

Initial projects showed the US economy shrank 1.4 percent in the first quarter of 2022. However, the latest revised numbers show a drop of 1.6 percent, according to the Bureau of Economic Analysis. This larger drop indicates that the second quarter of the year may also show a slowdown, which would officially mark a recession.
California Residents May Get "Inflation Relief" Checks

A budget proposal in California may allow millions of families in the state to receive checks of up to $1,050. The goal is to help with offsetting inflation and helping families better pay for gasoline and groceries. If passed, it would be the largest direct payment from a state, but could also end up extending inflation.
China Looks to Cut Bank Executive Pay

China is looking to crack down on pay for bank executives that it deems "excessive." This is part of a larger crackdown on high salaries that started in the country last year. China's latest drive, the Common Prosperity campaign, is looking to find ways to reduce income inequality.
Tesla Lays Off 200 Workers

Tesla Motors (TSLA) has laid off nearly 200 employees working on the Autopilot program. The EV producer joins a number of other tech companies who have announced layoffs in recent weeks. The company has previously noted that they would look to reduce headcount among non-manufacturing roles, although the total company payroll is expected to grow overall.
Three Arrows Capital Ordered to Liquidate

A court in the British Virgin Islands has ordered Three Arrows Capital to liquidate. The hedge fund, invested largely in cryptocurrencies, has failed to repay its debts. The fund's valuation has suffered as the selloff in the crypto space has led to large losses for the fund.

S&P 500 MOVERS
TOP
GIS  6.348%
MOH  3.442%
ABMD 2.975%
MNST 2.797%
SJM 2.744%
BOTTOM
CCL 14.134%
RCL 10.264%
NCLH 9.326%
BBWI 9%
APA 6.887%

Quote of the Day
The bottom line is until we see some amount of panic here or something that gets the central bankers concerned, they are just 'hellbent' to get inflation under control.
- Scott Minerd, CIO of Guggenheim Partners' Global, on why the market will likely continue to trend downward from here in the coming months as the focus remains on reducing inflation.

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The markets have changed… but have your strategies?

The Pros know there is one way to find out what's coming next, but it isn't what you think.

They've been using it for decades to pick their winning stocks.

It's the only way to get answers while saving you precious time and money.

Check out this must-see tool for predictive analysis.


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