The time to buy is getting close

Good morning!

Nvidia soars (again), Chinese tech crumbles … you know the drill.

Here’s my playbook:

1 – Nvidia

Shares took off overnight following EPS that was $0.06 over estimates and a big revenue beat, a “double beat” in my book. Not surprisingly, this stock is THE metaverse play because it’ll power video games, data centres, processing, and more. (Read)

Now, let me ask you something and – full caveat – it might sting a bit.

Did you miss NVDA’s run?

You’re not alone if you did.

That didn’t have to happen.

Brokers and advisors pushing the same tired diversification drivel are playing not to lose which holds you and your money back.

Playing to win is very different.

For example, I specifically recommended NVDA in the October issue of One Bar Ahead.™ Shares are up a stunning 65.1% since then versus just 7.86% from the S&P 500.

One Bar Ahead™ readers following along just scored a quick 52% on RIVN in just 8 days, without using options.

Warren Buffett has 75% of his portfolio in just 4 stocks and that’s how you play the game … by concentrating on where stocks are going. Not where they’ve been.

If you’ve got this covered, that’s totally cool with me; I will not be offended in the least. But if you’d like a solution to Wall Street’s status quo, I’m here. (Get on board right now).

2 – Why SBUX’s latest makes me want to buy

I warned a few years ago that higher minimum wage advocates had better be careful what they wish for because their demands would accelerate the push to what I called “workerless” locations. And bada-bing … Starbucks just linked up with Amazon Go for the first cashier-less café. (Read)

White Castle is experimenting with robo-cooks and is already rolling out kiosks. Dominos is evaluating driverless delivery vehicles. IBM is developing automated order taking for MCD drive-throughs.

Just wait till an Amazon warehouse goes “dark” – meaning it starts operating with robot pickers that don’t need light or heat or breakrooms or parking. The you know what will hit the fan and the stock will take off like a rocket.

Meanwhile, I may just have to buy some SBUX to enjoy while I hunt for a robotics company stock specializing in visual acquisition!

3 – The time to buy is getting close

As I suspected would be the case when Jack Ma went missing and China’s tech apparatchiks went on a rampage, BABA has just slashed earnings and lowered guidance. Shares are down big and, mind you, that’s after falling from $260ish when I said that. (Read)

The time to buy is getting close … er.

Selling cash-secured puts in the low $100s could make great sense, but only with speculative capital.

4 – Visa’s Amazon problem may get worse

The global credit card processor’s problems could get a lot worse with Amazon reportedly now considering abandoning Visa as a partner on top of yesterday’s news to ban UK-issued Visa cards because of high fees. (Read)

Personally, I got stopped out of Visa recently at a small loss. I hated it at the time but, as usual, the markets were trying to tell me something about the company’s future. Now we know … which means it’s time to get back in the fight.

My favourite tactics in situations like this one are Selling Cash-Secured Puts and using LowBall Orders. Both at steep, deep discounts but, critically with no risk in the meantime. Then, I’ll scale in and build my stake for the next run higher.

One Bar Ahead™ Family: See my alert on October 29th for precise instructions if you’re keen to do the same but haven’t busted a move yet. (Or, click here if you’d like to join the party).

5 – Brainard v. Powell

Powell was widely expected to be a shoo-in for renomination until recently when President Biden interviewed Fed Reserve Board Governor Lael Brainard. I think Brainard may get the nod. (Read)

Powell is the better choice IMHO but Brainard is the politically favourable one. She’s more dovish and a super-savvy political power player. I think the yield curve steepens, inflation worsens and, critically, more money comes rushing IN.

Ergo, you want to be long or the risks of being wrong could get super expensive in a hurry.

Bottom Line

There are a lot of folks who rush into markets because they’ve gotten a hot tip, read something interesting, or heard about a new technology that makes all kinds of sense.

Take a deep breath.

Anyone can buy stocks, but the real winners make a serious effort to find the right stocks first.

You got this – I promise!

Let’s MAKE it a great day,


Keith