Make this trade if you’re looking for a quick…
Sep 03, 2021Good morning!
Stocks are trying to move still higher, but my guts are telling me that traders are itching to mount a short term attack on the weak money in search of some quick profits.
Here’s my playbook.
1 – Make this trade if you’re looking for a quick buck and willing to take the risk
The easiest and simplest thing to do if you’re itching to make an entirely speculative trade or simply want to buy some downside protection is to buy put options ahead of the holiday weekend. You can do this on your favourite stocks or an index like the S&P 500; it really doesn’t matter because the markets are so linked these days. If you’re not options savvy or simply prefer not to use ‘em, consider a few shares in a highly leveraged reverse index fund or an ETF like SH which moves opposite to the S&P 500 it tracks.
Win or lose, plan on exiting the position next Tuesday, perhaps Friday at the very latest.
2 – Intel to the rescue?
GM is now pausing production at 8 plants with Ford, Stellantis, Toyota and Nissan already taking a break. Profitability will go down goes the thinking but that’s not likely. Companies will simply charge more for what’s already on the lot to protect margins. Consumers, of course, will fork over the $$.
Buy Intel … it’s reportedly in discussions to manufacture automobile chips. Or stick with Apple and Tesla, both of which are well into making their own chips.
3 – Not there for the dental plan
Didi Global is moving higher this morning on reports that China may take a stake and bring it under state control. I can assure you, Beijing isn’t there for the dental plan!
Beijing wants control over the data (and the financial linkages) at any cost.
4 – All Apple, all the time
I told you about this a few weeks ago … Apple suppliers are reportedly being asked to produce 90+ million new iPhones, a 20% increase from the usual 75 million units. Now Wedbush’s Dan Ives says he’s hearing 130-150 million. I have no idea where he’s getting his information, but I’ll take it.
My target remains $200 a share within the next 6-12 months and a $3 trillion market cap within the same time frame … numbers I put on the board last January!
Incidentally, thanks for the company Dan – huge respect for your work!
5 - Take a job, move, and get paid to do it
Sign of the times if I’ve ever seen one. Many states are having trouble finding workers. Vermont is no exception which is why the state will pay people up to $7,500 to move and take a job there.
It’s a stunning place, the people are nice, and I have great memories of riding through the hills on some remarkable Fall days with my friends in search of fresh maple syrup. Hmmmmm……
Bottom Line
People fear losing money in the markets, which is normal but completely misguided.
What they should really fear is not making more.
Do you find yourself in this position? Why?
Take action! I’d like to help.
Now, let’s finish the week strong!
Make it a GREAT day!
Keith
PS: The September issue of One Bar Ahead™ comes out later today and includes two new recommendations, my latest thinking on the big picture, and a new high-speed decision-making model that can help you win practically no matter what happens in the markets next. Trillions of dollars are at stake. Click here to join the action.
