Fortunes will be made (or lost) in the weeks ahead

Good morning!

Markets are all green in the early going and, importantly, considerably off their lows of the overnight as Wall Street readies for a slew of earnings this week.

Contrary to what the media would have you believe about everything going to heck in a handbasket, there are plenty of stocks doing just fine right now.

It’s my job to help you find ‘em.

Here’s my playbook.

1 – Fortunes will be made (or lost) in the weeks ahead

It’s as predictable as the sun rising … a 50-75% decline in the prices of super strong companies is an amazing buying opportunity. Price trajectories, growth estimates and valuations all support this over the past 120+ years of market history.

The next few months are going to be rocky, but the upside dramatically outweighs the downside from here, even if there’s more selling to come. The situation was the same following the Internet Bubble and the Global Financial Crisis (along with every other market correction over the past 120 years).

Lining up the next ten years of profits now is exactly what you want to do.

Not all companies are equal though.

The question savvy investors want to be asking themselves this morning is simple … do you own enough of the right shares?

If yes, great.

If not, what will you do about it and when?

I’ll have an update for the One Bar Ahead™ Family along with the latest re-entry price points, targets, and more a few hours from now. (Click here if you’d like to get your mitts on that information)

One of my favs has been hit particularly hard and, as a result, has spectacular upside already built in!

2 – Twitter could fall by 25%

The wokeratti are in panic mode

Twitter has adopted a “poison pill” intended to keep Tesla CEO Elon Musk from accumulating more than 15% of shares on the heels of his offer to buy the whole enchilada for $54.20 last week. (Read)

Twitter shares are up 4.5% in pre-market but I think the better opportunity could be to the short side.

Here’s my take with the fantastic Ashley Webster who was sitting in for Stuart Varney this morning. (Watch)

Oh, and BTW, founder Jack Dorsey considers Twitter’s board as “consistently” dysfunctional. (Read)

Buying puts could work nicely. Shorting, too, but the problem there is a short burn if Wall Street rides to the “rescue.”

3 – Didi Global got shellacked (again)

Shares of the once-vaunted Uber contender fell nearly 20% overnight following an announcement that revenues dropped 12.7% in Q4. Bottom fishers are undoubtedly tempted at $2 a share but the worst may be yet to come … there’s a vote on May 23rd to delist. (Read)

Incidentally, shares are down 65% since December 3, 2021 when I described owning ‘em as “playing with fire” right here in the Morning 5 with Fitz. And down 86.7% since debut.

4 – Buy the dip and stay long Apple

The company is firing on all cylinders: a global brand with billions of devices already in use and more coming, a new upgrade cycle that reinforces every product set and, the ability to influence customer behavior. All good.

But the company’s take on privacy and the so-called “Open App Market Act” is better still. Regulators want to open up the Apple App Store or require Apple to allow users to download apps from outside the Apple universe. (Read)

I believe mounting privacy concerns and the need for secure “walls” by consumers will reinforce the company’s value, not take away from it.

5 – Target just went full garage sale mode

I never thought I’d see the day but it makes sense. Target is selling used clothing in partnership with ThredUp (who will provide the backend infrastructure). The idea is to create a secondhand apparel marketplace, and it already has 400,000 items. (Read)

McKinsey, BTW, sees the secondhand market expanding 10-15% a year to $77 billion within the next 4 years.

Given the rampant inflation and potential customer overlap, Target stock may finally be worth a look.

Bottom Line

You have absolutely, positively got to have a method to your madness if you want to succeed in today’s markets.

Flying by the seat of your pants doesn't count!

Contrary to what the headlines would have you believe, there are plenty of stocks that are doing well … and it’s my job to help you find 'em. There’s plenty of money on the move!

I’m thrilled you’re here – thanks for reading and being part of the 5 With Fitz.

Keith