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A genius move ahead of bank earnings?

Jan 09, 2023

Good morning!

The markets want to make a comeback, but as usual, that’ll depend on Club Fed and rates. If nothing else, it’s nice to see some green on the screen for a change!

Stay frosty.

The best time to buy stocks is when everybody else is looking in the other direction!

Here’s my playbook.

Heck yeah: I’m buying the tech dip! 💯

“Are you buying the dip in big tech?” Fox anchor Stuart Varney put it to me in his usual super-savvy and conversational style.

Absolutely. It doesn’t feel good, and you may not like it, but that’s how the game is played. Buy low, sell high. You make the big bucks in down markets; you just don’t realize it until later!

What else I’m buying and why. (Watch)

ATTN OBAers: I’ll have a specific recommendation later today in this week’s update, so keep an eye on your email! Upgrade to paid

A genius move for bank earnings?

JPMorgan (JPM), Citigroup (C), Bank of America (BAC) and Wells Fargo (WFC) kick off earnings this Friday. Watch: management guidance, deposit funding ratios, loss provisions. The commentary will be more important than the numbers and, I think, set the tone for the next few weeks. (Read)

My guess is, traders will push higher this week into earnings, then orchestrate a rug pull.

Could be a rare opportunity to play volatility itself over the weekend. Maybe with the ProShares Ultra VIX Short Term Futures ETF (UVXY) or options spreads if you have the chops.

Rolls Royce: What recession?

Rolls Royce sold a record 6,021 vehicles last year, which is a 7.8% increase year over year, despite an average price tag of $534,000 per unit. (Read)

2022 was also a record year for bespoke commissions (a $5 way of saying custom orders), with the bulk coming from the Middle East. No wonder BMW (BMWG), Rolls Royce’s parent company, returned -1.72% last year while the S&P 500 was down -19.95%. BMWG’s ADR trades under BMWYY, in case you’re interested.

We’ve talked about the importance of putting together seemingly unrelated data, and this is a biggie. Rolls also opened a private, invitation-only office in Dubai, the first outside Goodwood in England. I think that speaks volumes about who’s buying and where the company sees the money flowing, pun intended.

The company plans to open additional offices in the next few years but is keeping the list super close to the vest for now. My guess is China will be next.

I might have to pick up a few shares for the heckuvit. Hmmmm. 🤔

A no-brainer asset class & rock-solid dividends too
COVID sped up innovation 10X or more. That’s why I am super excited to see AstraZeneca (AZN) strike a $1.8 billion deal to buy CinCor Pharma, Inc. (CINC) whose core drugs aim to treat patients with high blood pressure and chronic kidney disease. (Read) Meanwhile, life expectancy continues to rise.

AstraZeneca is a solid choice, but there are two names I like even better. One company in particular is trading at a P/E below 10X, a yield above 3%, and has massive growth potential. There’s still time to buy, but the window is closing rapidly. Upgrade to paid