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MarketWealth Weekender
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 to help you beat Mr. Market.
So let's get to the huge news...
We ended the volatile month of September and began October on a high note.
And then President Donald Trump dropped a bombshell late Thursday night/early Friday morning, announcing he and the first lady have tested positive for COVID-19.
Dow futures immediately fell 400 points and S&P 500 futures sank 1.6% while volatility spiked. On top of that, we still don't have a stimulus deal...
Health concerns for the incumbent one month before a presidential election aside, what does it all mean?
Big swings in the market have become routine, and it looks like that trend will continue as we move closer to the election.
Looking at how the bond market has been so congested and sideways for the past month, that tells me that markets are looking for three major things: a COVID vaccine, the end of the trade war, and now what will happen with the president and his health.
Now, on to some big wins...
BIG Wins
We bagged a big winner in WealthPress Report on Abbott Laboratories (NYSE: ABT) as it approached our profit target, netting us a 27% profit in just two days!
- +27% on ABT (November 20 $110 CALL).
- Bought for $3.40 on September 29.
- Sold at $4.65 on October 1.
We also scored a big win for Precision Profits on Advanced Micro Devices (Nasdaq: AMD) as it pushed higher all week.
- +44.14% on AMD (November 20 $85 CALL).
- Entered at $5.55 on September 16.
- Exited at $8 on October October 1.
If you haven't already, be sure to check out our Precision Profits and WealthPress Report services to get in on these big wins!
We love touting your winners! If you have one you'd like to share with your fellow MarketWealth readers, email us at wptestimonial@gmail.com and let us know!
Catch a 'Free Ride' for Biotech Conference Season
October is the biggest month of the year for biotech stocks as companies from all over the world take center stage during "conference season" and announce their most exciting data and biggest achievements.
We will hear about medical breakthroughs, clinical trial results, new drug applications, mergers and acquisitions — CEOs could even leak big future projects!
And these big announcements create a unique — and profitable — trading window.
One thing to remember is that no one goes to one of these conferences to announce bad news. And good news generally pushes stock prices higher.
While we can't prove that companies wait specifically for conference season to release key data, it certainly seems that way!
There are 21 biotech and medical conferences this month, and 14 more on the books for November in the U.S. alone.
Join the Free Riders Club NOW to take advantage of these "catalyst events," including what is considered the biggest and most lucrative biotech conference of the year…
Click here for more information on Free Riders Club!
More Bang for Your Buck: A Mystery Sector
This week over at Joy of the Trade, Jeff Zananiri discussed a sector he is laser-focused on right now, and where he thinks you can get the most bang for your buck.
And, no, it's not tech! Jeff's got something even better up his sleeve.
This sector is the key to whether we make new lows or hit new highs, and that sector is: oil.
Oil tells you what's happening in the global economy.
Oil stocks have been some of the worst-performing in the broader stock market during September, which is of course concerning. Oil has been in a range of $38 to $45 for most of the month.
The problem is Jeff expects things to get much worse. Global demand for barrels of oil per day went from over 100 million… down to 83 million. So while other parts of the economy have rebounded since COVID, oil consumption most certainly has not.
And until that changes, you'll continue to see oil stocks under pressure. But the thing is, oil stocks have still outperformed oil as a commodity on a regular basis by about 20% — since last year.
So as oil prices push lower and people tell you oil stocks are "cheap," that's not enough reason to buy them. They're cheap for a reason — because there's no demand right now.
Play them accordingly.
2 Stay-at-Home Fitness Stocks for October
Very little good has come out of the coronavirus pandemic. People have lost their lives and their jobs. Social gatherings of any sort, from weddings to funerals, have been postponed and canceled.
And once again, cases are rising around the world.
One area that has seen some good come out of the bad is with stay-at-home fitness stocks. With group fitness activities being among canceled social gatherings, the stay-at-home fitness craze has gained steam — and it looks like it's here to stay.
And I've been watching something interesting among mid-cap stocks the past few weeks.
The S&P 500 hit a new record high on September 2, but only a handful of stocks continued trading higher — and making new all-time highs as recently as last week amid the broader sell-off.
Most of the stocks bucking that sell-off trend? The original stay-at-home stocks we've been talking about for months. And the reason is simple: the aforementioned uptick in COVID cases around the world, and a pushing back of the timeline for a vaccine.
That's big news for these two stay-at-home fitness stocks I've been watching closely:
- Clarus Corp. (Nasdaq: CLAR) — This company manufactures sportswear, and sportswear is hot right now! Expect more upside for this stock in the coming months.
- Five-year return: 126.66%.
- Five-year revenue growth: 18.79%.
- Five-year earnings growth: 3,150%.
- Peloton Interactive Inc. (Nasdaq: PTON) — Most everyone has heard of this stock by now and it's shown no signs of slowing down. Peloton creates fitness products and this company is a true pandemic success story. My price target is $135 a share, making it reasonably priced right now at around $107.51.
- It's up 240% year to date.
- One-year return: 278.49%.
- Earnings-per-share growth quarter over quarter: 235%.
- Four straight quarters of earnings beats.
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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| Disclaimer & DisclosuresThe information in this email is intended for informational purposes only and does not guarantee specific results as there is a high degree of risk involved with trading. Also, our traders are real traders and may have financial interests in the companies discussed. Please see our Terms and Conditions for more information. |
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