MarketWealth Weekender
Greetings, folks, and welcome to the latest edition of the MarketWealth Weekender. This gives us a chance to touch base with our readers and share some of our best ideas, winning trades and testimonials, tips and picks from the past week to help you beat Mr. Market.
So let's get to it...
We closed out another volatile week Friday in a largely volatile and down month. There were however a few bullish signs. On days markets opened in the dumps we'd often see markets rally back, and that happened again Friday.
One of the biggest problems for markets around the world is a resurgence in COVID-19 cases. Here in the U.S., it's political division ahead of a presidential election that is sure to be hotly contested. The upcoming election is the second biggest factor driving things on Wall Street right now... behind only the virus.
The next big story to watch continues to be what kind of stimulus, if any, Congress will agree upon. It will be great if Americans can get some more cash out of the government, and that would certainly be bullish for the market.
As far as overall momentum, 60% of S&P 500 stocks are trading below their 200-day moving averages, which is a problem, folks. That's bearish.
In the short-term, we could be close to bottoming out. But in the long-term, I think we still have more downside ahead.
But there is some strength to be found. There are four stocks making 90-day highs right now:
- Darden Restaurants Inc. (NYSE: DRI)
- Navistar International Corp. (NYSE: NAV)
- Owens & Minor Inc. (NYSE: OMI)
- Momenta Pharmaceuticals Inc. (Nasdaq: MTNA)
When the market rebalances, the first stocks to go up will be the ones that withstood the downturn. Of those four, I really like Darden Restaurants, which has been a monster as far as relative strength. And I like Navistar, but I'd wait for it to break above the $44 level.
Now, on to some big wins...
You said it!
Another one of our members scored a monster win with a Primetime Stocks Calendar trade Tom Busby nailed on American Tower Corp. (NYSE: AMT).
A reader last week, Ann, emailed to mention her 62% win on this trade — all in just 24 hours. Another MarketWealth reader by the name of Dick. C pocketed a cool $13,000.
I also did good on AMT call I made $13,000.and change. THANKS Dick C
If you have a trade you'd like to brag about, send us a note at WPtestimonial@gmail.com and we might feature it here.
A BIG Win
We scored a couple more winners for our Primetime Stock Calendar members this week, which started with a major sell-off that had some traders running for the hills.
But not us.
As people were panic selling, we were profit selling when we hit our $263.50 price target on Lennox International Inc. (NYSE: LII) — after holding for just 13 days. No, the stock wasn't bucking the trend and moving higher. Rather, Tom Busby bet against it using a bear put spread — a lower-risk way to bet against a stock compared to simply buying puts on it.
- +44% on bear put debit spread on LII
- October 16 $270 PUT
- October 16 $260 PUT
We also scored another big Tom's Trade win after we hit our $225 price target on Amedisys Inc. (Nasdaq: AMED) with another bear put spread.
- +52.5% on bear put debit spread on AMED
- October 16 $230 PUT
- October 16 $220 PUT
If you aren't already a Primetime Stocks Calendar member, you should be!
Since the end of June when the service launched, we've closed 19 trades with gains of 10% to 40%, and had winners of 44%, 52%, 60%, 65%, 70%, 71%, 88%, 168% and 169%!
Ready for Some Blue-Chip Trophy Trades?
What would you do with an extra $56,256 every month?
That's a question I was asked via email from a trader in California who says he knows the secret to making that much every single month…
And he had the receipts to back up his claim. He showed me screenshots from his E-Trade account and told me anyone can do this.
And what I saw was amazing…
I'm talking about $253,032 in profits in just 10 weeks… $458,319 in profits on just three positions… $254,584 in profits after just 63 days… $315,811 in profits in a matter of weeks…
All told, he was over $1 million in profits this year alone.
So I did some research on this guy, Chuck, and he might very well be the most interesting trader in the world. He started with just $4,600 and turned that into $460,000 in just two years, several years ago.
And he's done it all with his secret trading method he calls "Trophy Trades." He hasn't worked a desk job in over three decades, and his system allows him to live out his wildest dreams.
Play Some Defense With This HOT REIT
It's easy to see why investors flock to real estate investment trusts, or REITs. They offer reliable and growing income streams with market-beating returns. They also produce yields that crush what the average S&P 500 company offers to shareholders.
But the coronavirus pandemic has changed things, and investing in the wrong REIT can prove costly as renters might not be able to pay up. Many have even been forced into bankruptcy.
But I have a REIT exchange-traded fund — which offers automatic diversification — I believe is a hidden gem with strong resilience and relative strength.
- SBA Communications Corp. (Nasdaq: SBAC) — This fund contains companies leasing antenna space to wireless service providers. It has a five-year return of 192.08% and five years of earnings growth of 1,700% — and our positive quarters of earnings estimates and surprises. The ongoing 5G rollout should keep shares of SBAC trading higher in the coming months.
I like this ETF, and it should provide defensive strength in the coming months.
Signing Off
If you're looking for more compelling trade ideas and stock market musings to read and help you prepare for what lies ahead, here's what other experts at WealthPress are saying:
Thanks for being a MarketWealth reader and enjoy the rest of your weekend!
Roger Scott
MarketWealth
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