Now the #1 most held stock on Robinhood
Aug 24, 2021Good morning!
The major averages continue to inch higher on news of the FDA’s approval for Pfizer’s Covid vaccine and yet more solid earnings from the likes of Best Buy, Palo Alto Networks, Medtronic and Camping World among others.
Here’s my playbook.
1 – Now the #1 most widely held stock on Robinhood
It’s not AMC, but that’s a good guess. Nor is it Tesla, which actually was until recently. No, the number one most widely held stock on Robinhood is now … Apple.
Not that I am surprised, mind you.
Apple is worldwide, growing at start-up rates, and is making a medical pivot that that hasn’t even yet been remotely valued into the company’s stock price. Oh, and the company makes nearly $200,000 every 60 seconds.
Apple is widely expected to launch new iPhones in a few weeks which will add more fuel to the proverbial fire!
2 – Why I won’t be joining bargain hunters any time soon
Many US-listed Chinese stocks are surging to the upside after Beijing laid out conditions that must be met for companies that want to go public at home and abroad. Reports are that Cathie Wood (ARK) has gone back into JD.com and Hugh Young (Aberdeen Standard Investments) has purchased Tencent on the dip.
I could make the case that the worst is passed (and many are) but knowing what I know about China, that’s a bet I am not keen to take any time soon because of the risks involved.
Save one possible exception … Alibaba (BABA).
I sold a few cash secured puts (17 Sept 21 $100 strike) and would be happy to buy shares at that price if the market gives me the opportunity to do so. Meanwhile, I get paid to go shopping by everybody else who’s taking the risk that shares move higher.
Protect your portfolio against market mayhem
I sent a special updated list of profit targets and trailing stops to One Bar Ahead™ subscribers this morning. If you’ve got this covered, that’s great! If not and you’re searching for a way to unlock Wall Street, I’d like to toss my hat in the ring. There’s plenty of profit potential out there and it’s my job to help you find it!
3 – Sharks turn on each other
My how the world turns. Retail investors have had it out for big money players like Citadel because they perceive it’s an “us versus them” game when it comes to stocks like AMC. That’s undoubtedly true but what they don’t realize is that the sharks turn on each other, too.
Ver Capital Partners is apparently suing Citi alleging that the bank acted in its own interest forcing the fund to default on a $263 million loan in March 2020 and selling linked assets to its trading desk.
Uh-huh …
4 – Walmart to deliver packages … for other merchants
I’ve long maintained that Walmart may be the only company capable of challenging Amazon because of last mile capabilities. This news certainly lends credence to that hypothesis. Walmart is starting a last mile service ahead of the holidays that could pay off big time.
5 – What Best Buy’s earnings really tell you
Sales grew by 20% and the company raised guidance. CEO Corie Barry attributes the rise to a dramatic and structural need for technology but I think it’s far simpler than that … millions of people upgraded their technology to work at home. Many will stay there for the foreseeable future.
The shift could presage a new employment wave of “quits” and “early retirements” that are not yet factored into the jobs data.
Digitalisation and Dislocation strike again!
**(And if you’re reading along in One Bar Ahead™ you know precisely why this is GREAT for our money!)
Bottom Line
Psychology counts.
Pessimists play not to lose which is why they have a hard time making money. Optimists play to win which is why they usually do.
As always, MAKE it a great day.
You got this – I promise!
Keith
