The best stocks continually hit new highs on the way to…
Sep 01, 2021Good morning!
Futures are up in the early going for what could be a strong start to a traditionally tough month. People are worried about prices being “high” but forget that’s how the game works.
The best stocks continually hit new highs on the way to creating life-changing wealth.
Here’s my playbook.
1 – Bad news is good for easy money.
Since 1928, the S&P 500 has lost 0.99% on average during the month of September. However, it’s also posted a median gain of 1.3% during Septembers when the S&P 500 was up 13% through June according to FundStrat.
This year, the S&P 500 was up 14% through June … ergo, September might not be as “bad” as everybody thinks!
2 – Tesla’s upside dramatically outweighs the downside
Tesla has reportedly gotten approval for 4 new vehicles in India, signalling an entry into the world’s 5th largest car market. The company also wants to become an electricity retailer, something I suggested was likely years ago.
The autopilot investigation that’s dragging shares down could prove to be a great opening. Prices are nearly down to the 200 day SMA and could bounce nicely if there’s support.
Selling puts at these levels makes all kinds of sense.
3 – Of course he said that (which is why you should avoid this stock)
Virtu CEO Doug Cifu said that his firm believes “that drastic changes to the market ecosystem are not warranted and would likely result in worse outcomes for retail investors.” Virtu, in case you’re not familiar with what it does, executes trades for Robinhood which got shellacked on comments from SEC Chair Gary Gensler that a PFOF ban is on the table.
Short or avoid both Virtu (VIRT) and Robinhood (HOOD). Buy puts if you’re keen to place an aggressive bet.
4 – Food and beverage lawsuits on the rise
Consumers have increasingly “had it” with lime chips containing no lime, vanilla labelled products that don’t contain ingredients from vanilla beans and more. That’s certainly true in our household where my wife and I are continually amazed by the false labelling and greenwashing (a practice intended to convince consumers products are more eco-friendly but really aren’t).
5 – This stock is near record highs and a great buy anyway
Believe it or not, have it or not, vaccines or not … the virus doesn’t care when it comes to your cash. Consumers are stocking up on toilet paper (again) and inflation is very, very real despite what the Fed’s boffins think.
Watch my take on Fox earlier this morning.
Would you like to look over my shoulder?
Spit-balling here … some folks have expressed an interest in following along with my trading in real time. I’d be interested to hear your thoughts.
Here’s what that might look like: 1-4 trades a day, mainly simple spreads including selling cash-secured puts, covered calls, calendars etc. Usually, around big stocks you know and love with a few speculative trades here and there. Probably distributed by text because it’s quickest and more direct. Price TBD but minimal and realistic if there’s enough interest.
Please let me know by replying to this email, or sending a message to [email protected].
Bottom Line
Volatility creates opportunity. The only question is how YOU handle it!
Play offence every chance you get using tactics that fit the situation … LowBall Orders to buy at a discount, selling cash-secured puts to get paid while you shop for stocks you want to own, trailing stops to harvest profits and protect gains.
What will you do today?
I’ve got my list.
As always, MAKE it a great day!
Keith
