Wealthpress

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• Why I Pay Close Attention to Premarket Activity
• Is Big Oil the New Tobacco?
• How to Trade an Earnings Event
• The Best Break-Out Stock to Trade in 2021
• Global Stocks Mixed After Congress Passes Stimulus Bill
• We Have a New Stimulus Package Coming. Now What? 

Why I Pay Close Attention to Premarket Activity Posted: 22 Dec 2020 09:15 AM PST Markets might not open until 9:30 EST, but I complete some of my most important market analysis before that time.  You see, prior to the market opening, I look at three charts. Every morning, they tip me off to where the market might be headed and sets the tone for the trading day.  If you're not using premarket data you're likely leaving a lot of money on the table…  Today I'll tell you why I wake up extra early every morning, what I look at and how it helps me stay ahead of the game. The post Why I Pay Close Attention to Premarket Activity appeared first on Wealthpress.

Is Big Oil the New Tobacco? Posted: 22 Dec 2020 08:49 AM PST The Surgeon General first concluded that cigarettes cause cancer and other diseases in its historic 1964 report. From 1976 to 1993, six independent studies found smoking accounted for between 6 and 8 percent of US healthcare costs, which amounted to more than $50 billion in 1993. To recover these costs, states began to sue the largest cigarette manufactures, Philip Morris, Reynolds, Brown & Williamson and Lorillard. In 1998, all 46 states, 4 territories along with Puerto Rico and the District of Columbia, entered into a Master Settlement Agreement with the cigarette manufacturer. It was the largest civil litigation in US history. To date, over $168 billion has been paid to US states and billions more will be paid in perpetuity. These payments are not just part of the American tax code, taxes on tobacco are found all over the world. It's known as excise tax in the national tax code. And they are enacted on goods like tobacco, alcohol, gasoline and even airline tickets. Since 1998, cigarette companies have paid over $1.6 trillion to governments around the world… Government Rakes It In With Various "Sound the Alarm On _____" Taxes… Still to this day, each year cigarette companies pay each US state and territory a lump sum, culminating in a total payout of almost $7 billion annually. It has been an enormous source of tax revenue for the governments. Post-pandemic, governments are going to require new "alternative" sources of tax revenue. The politicians will appear to try to pay back some of these multi-trillion-dollar stimulus packages. A likely source of tax revenue in the United States and abroad (one that would meet very little resistance today) is through a carbon tax. If we think about the politicians running most of the large, developed world, the tax for green agenda will be in full force. Carbon taxation continues to be a focal point of discussion among all major nations. So, is it possible, the green, socialist governments make the oil companies pay for greenhouse gas emissions? The world has known about greenhouse gas emissions for decades. A famous 1982 internal memo from Exxon scientists predicted the world would hit CO2 concentration of 415 ppm and a global temperature increase of 1C. Last year global CO2 levels reached 409.8 PPM, while temperatures around the world have warmed 1C. Royal Dutch Shell's Greenhouse Effect Working Group from the same 1980s era concluded similar results as Exxon. But are the oil companies truly at fault? I do believe the governments recognize (at least behind closed doors) that fossil fuels played an integral role in the world's development and globalization. No question – We would not be where we are today without oil. This is THE Agenda Going Forward Whether You Like it Or Not… The price companies pay for emissions going forward is certainly up for debate and a hot topic at all political debates. According to data from Climate Watch and the World Resources Institute… Oil and gas + petrochemical production account for 3.6% of global emissions. For comparison, iron and steel production accounted for 7.2%. Transportation (road + aviation + marine) accounts for 16.2% of greenhouse gas emissions. So, while oil and gas producers certainly should be held accountable for their share of emissions, the easy low hanging fruit to go after is the Big Oil companies. After all, it's not like the tobacco farmer was on the hook for billions of dollars when they grew the tobacco. In the United States, it's been loosely discussed starting at $15 to $25 per tonne tax on greenhouse gas emissions. Treasury Secretary-elect Yellen is pro-carbon taxation. And being a PhD Economist, who also ran the US Federal Reserve, she will understand that the government needs to find "alternative" sources of revenue. A carbon tax fits that bill. In Canada, our carbon tax is $20 per tonne and will rise at $10 per tonne annually until it reaches $170/ tonne in 2030. In Europe, it's every country for itself, with tax policies ranging from pennies to $125+ per tonne. How much Greenhouse Gas do Oil Producers Emit? Surprisingly, as an industry… Oil and Gas producers when compared to steel don't actually emit a significant quantity of green house gases. Steel for example emits over 7% of global greenhouse gases, Oil & Gas extraction emits under 4%. Given the green socialist agenda the first world has now gone, expect all extraction and manufacturing industries to pay a price for pollution. What was theoretical logic just a few short years ago is now law in many nations around the world. Below is a chart of major US oil producers and their annual Green House Gas emissions divided by total production (in terms of a barrel of oil equivalent: GHG per boe produced). These 14 producers account for 65% of US oil production, making it a reasonable barometer for emission levels. In the next chart below, you'll see the major integrated oil producers, Saudi Aramco, Exxon, Chevron and others. Integrated companies produce crude oil, refine it through their own refineries and sell finished products like gasoline and jet fuel. So, it should be expected that their emissions footprint is much larger on an oil production basis. Putting a Value on Carbon in the Oil & Gas Industry It's going to be pretty simple and this is what you need to take home… Emitters will pay per tonne of GHG levy. And I do see the green energy companies getting net credits which can be offset or sold into an exchange. I am sure some of you will think that this is a bullshit tax and it will bankrupt the oil industry. It won't. But it's going to change oil production dynamics. This tax will start to move high cost and high emission oil offline and make low cost low emission oil more valuable and global emissions would drop. There will be ways to play this, and the profits could be enormous. One company we profiled in depth recently that supplies critical resources to many clean energy companies – has risen nearly 3x since our first writeup. Click here to learn more about my premium research service – Katusa's Resource Opportunities – where I detail the opportunities that I'm personally investing in every month Al Gore might not have invented the internet… But he certainly kickstarted a trillion-dollar market. We are ready, are you? Regards, Marin Katusa The post Is Big Oil the New Tobacco? appeared first on Wealthpress.

How to Trade an Earnings Event Posted: 22 Dec 2020 08:36 AM PST Whether you are a seasoned trader or not, jumping into a trade during the company’s earnings announcement is a bit risky… if you don't know how to trade an earnings event the right way.  Earnings season is usually a time during January, April, July and October when companies release their quarterly earnings report (investors use this to view how well off a company is financially and if they are worth the investment). The hours, and even days, leading up to an earnings event is where you'll see investors trying to predict what the report is going to look like and how the news is going to affect the stock. This, of course, causes stocks to peak and plummet as all this speculation creates an extremely volatile market. But while there's no guaranteed method to know if an investor's prediction about the company is true until the report comes out, there is still a way to make a significant amount of profit if you learn how to trade an earnings event the smart way. How to Trade an Earnings Event Traders, in today's video we really want to cover how you can trade an earnings event using General Mills Inc. (NYSE: GIS) as an example: The first thing you want to do is figure out when the next earnings report is going out. As you can see on General Mills chart, its most recent earnings report was on Dec. 17. The next thing we like to do is check out the stock's past performances and how the name trades on earnings. Going from right to left: The last report saw barely any movement, the report prior to that had slight upside, the move before that was extremely volatile (however you have to factor in that this was in March when the pandemic truly hit) and the other report didn't cause much movement. So at first glance, we think it’s safe to say that the General Mills stock isn't much of a mover when it comes to earnings season. Next, make sure to check out the implied volatility. Implied volatility is extremely important when looking at how a stock is going to react during its earnings event. It helps traders calculate probability and how volatile the stock will become. This is a great way for you to figure out how likely your stock is going to reach a price in a certain amount of time. On the chart above you can see that the implied volatility is very low and (after looking at the 200-day moving average) the price looks really flat. Simple enough so far, right? Well… this is when things start to get a little tricky and we need to pull out our calculators to crunch some numbers. Check out our short video below to get the rest of the steps on how to trade an earnings event and share your thoughts below. The post How to Trade an Earnings Event appeared first on Wealthpress.

The Best Break-Out Stock to Trade in 2021 Posted: 22 Dec 2020 08:13 AM PST We've got something exciting for you today: We just found the best cloud stock to trade for a break out during Q1 of 2021. The cloud computing stocks have been on fire during 2020 as the wave of enthusiasm for technology all but tripled once the pandemic and quarantine hit.  Cloud computing has definitely stolen the spotlight in the tech sector since its remote servers can store, deliver and manage data — all without having to use an IT department. This trend doesn't seem to be cooling down anytime soon… In fact, an investor with some incredibly deep pockets just put down $5 million of fresh money because they believe this stock is about to reach new highs. However, if they're wrong… they'll lose everything in the next 90 days. The post The Best Break-Out Stock to Trade in 2021 appeared first on Wealthpress.

Global Stocks Mixed After Congress Passes Stimulus Bill Posted: 22 Dec 2020 07:25 AM PST Global stock markets are mixed this morning. Shares in Europe and U.S. futures advanced after U.S. political leaders passed a $900 billion economic aid package, while stocks in Tokyo and other Asian markets fell.  The new economic relief package was approved late Monday night by Congress and will include $600 direct payments to most Americans, extra unemployment benefits for laid-off workers and additional financial support.  But how far will these $600 payments go?  It's said that the highly-anticipated economic aid package has partly offset concerns about a new and possibly more infectious strain of COVID-19 in Britain that has already limited travel from the United Kingdom. In today’s video, I have more on why the stock market isn't responding to the economic stimulus package… the biggest risk for stocks right now… whether I'm bullish or bearish… top sectors you'll want to target… and the best stocks to own.     P.S. Traditional investing research is becoming obsolete…  And that means the hours and hours you've spent studying stock charts and squinting at spreadsheets is a massive waste of your time. You need a new way to level the playing field against Wall Street and its lightning-fast trading activity — without putting your entire portfolio at risk. Future of Wealth Head Trader Lance Ippolito's Weekly Blitz Alert can help you do just that.  In it, Lance shows everyday investors just like you how to capture predictable profits with trades that could pay out overnight.  Don't miss your chance to collect these 24-hour windfalls!  The post Global Stocks Mixed After Congress Passes Stimulus Bill appeared first on Wealthpress.

We Have a New Stimulus Package Coming. Now What?  Posted: 22 Dec 2020 06:57 AM PST By now, you've likely heard and read about the new stimulus package that includes $600 payments to Americans who made less than $75,000 in 2019, and another $600 for each kid under 18. I won't bother going into the details, or whether or not it's enough. You'll get plenty of that elsewhere. For investors like us, the bigger question is… now what? What do we do with this information? To me, it means more of the same I've been telling you for months now. First thing's first: Keep your focus on not just possible rewards, but also potential risks.  It will take some time for the new stimulus package to move into the economy. But it will serve as additional support for the stock market. We must keep in mind that we could be in the midst of a bubbly melt-up phase. And in a bubble, crazy things can happen — and that includes quickly making or losing a lot of money.  What Your Personal Stimulus Package Should Include So given a new relief check is coming, it's a good idea to write down plans for a new stimulus plan for your portfolio. What stocks, along with distribution of the COVID-19 vaccine and a full reopening of America, have the best risk-reward profiles?  COVID-19 will cease to be the threat that it is now in the months ahead. And as that happens, I expect investors around the world will shift into emerging-market stocks in a big way. You'll be able to buy fast growth at far cheaper prices than the typical U.S.-based Nasdaq growth stock.  If you own your basic, high-flying tech stocks, chances are much of the impact of the new stimulus package is already priced in. In my view, that's not the case if you focus on energy, financials and emerging markets.  Those are three sectors I'm looking at in regard to the new stimulus package. Check out my short video and let's talk tickers , and which companies I'm banking on for big profits heading into the new year. Then share your thoughts in the comments below.  And as always, send your investing questions to jeff@yastine.com. You can also follow me on Twitter and Facebook. P.S. Earn Thousands Before the Market Even Opens  Many people may not know this, but the most important work traders do happens before the opening bell each morning on Wall Street…  Premarket trading helps investors and speculators develop a plan of action for that day to stay ahead of this crazy and unpredictable market — which I think is a bubble.  And lately I've been receiving helpful tips and tricks from the world's No. 1 premarket trader — alerting me to trades based on signals happening before the opening bell.  If you'd like to get in on these trades, too, just click on the button below! Get the Trades Here! The post We Have a New Stimulus Package Coming. Now What?  appeared first on Wealthpress.

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