Wealthpress |
- Stock Market Recap: Friday, Feb. 12, 2021
- How Small Investors Can Hit It Big in Financings and Private Placements
- Buy It and Burn It: The Reflation Edition
- The Next Cannabis Wave Is Picking up Steam
- Avoid This Unusual Options Activity Mistake: EA Acquires GLUU Stock
| Stock Market Recap: Friday, Feb. 12, 2021 Posted: 12 Feb 2021 02:34 PM PST Wall Street struggled for direction after trading in tight ranges for the second straight session, but closed higher on strength into the closing bell — and more in Friday's stock market recap. The gains helped the major indexes close higher for the second straight week to extend February's rally with the stock market closed on Monday for Presidents Day. Stock Market RecapThe Nasdaq added 0.5% after reaching a peak of 14,102.  The S&P 500 also rose 0.5% following the late-day run to 3,937 and fresh all-time high.  The Russell 2000 nudged up 0.2% with the midday high reaching 2,293.  The Dow added 0.1% after testing a final-hour high of 31,475.  For the week, Nasdaq soared 1.7%; the Russell 2000 rallied 1.6%; the S&P 500 jumped 1.2%; and the Dow was up 1%. Energy and Materials paced sector strength with gains of 1.5% and 1%, respectively. Utilities and Real Estate were the only sector laggards after declining 0.7% and 0.03%. Stock Market MoversShares of LoanDepot Inc. (NYSE: LDI) surged 43% in its second day of trading on no specific news. The stock opened at $14 in its initial public offering of 3,850,000 shares on Thursday. The deal size was slashed from 15 million shares and a previous price range of $19-$21. The company sells both mortgage and non-mortgage lending products and is the second largest non-bank provider of direct-to-consumer loans in the United States.  Stock Market OutlookThe percentage of Nasdaq 100 stocks trading above the 50-day moving averge closed at 71.54%, up 0.98%. Near-term and lower resistance at 72.5%-75% was challenged but held. A move above the latter would indicate a retest towards 77.5%-80% and slightly overbought levels from late January. Support is at 70%-67.5%. The percentage of S&P 500 stocks trading above the 200-day moving average settled at 87.25%, down 0.98%. Current and upper support at 87.5%-85% failed to hold. A close below the latter would signal weakness towards 82.5%-80%. Resistance is at 90%-92.5% with the latter representing overbought levels from late November. Global EconomyFrom the global stock market recap, European markets showed strength despite disappointing economic news. The U.K.'s FTSE 100 rallied 0.9%. The Belgium20, France's CAC 40 and the Stoxx 600 rose 0.6%. Germany’s DAX 30 edged up 0.1%. The U.K.'s economy slumped 9.9% in 2020, its biggest yearly drop in output since modern records began. Asian markets settled lower in limited action as South Korea's Kospi, Hong Kong’s Hang Seng and China’s Shanghai were closed for a holiday. Australia's S&P/ASX 200 fell 0.6% and Japan's Nikkei slipped 0.1%. U.S. EconomyConsumer Sentiment fell -2.8 points to 76.2 in the February preliminary print, versus forecasts for a reading of 80.9, which follows the -1.7 point drop to 79 in January. Nearly all of the weakness was in the expectations component which slumped -4.2 points to 69.8 after falling -0.6 ticks in January to 74. The current conditions slipped -0.5 points to 86.2 following the -3.3 point drop to 86.7 last month. The one-year price gauge climbed to 3.3% after jumping to 3% previously. The five-year inflation measure was unchanged at 2.7%. Baker-Hughes reported the U.S. rig count was up five from last week to 397 with oil rigs up seven to 306, gas rigs down two to 90 and miscellaneous rigs unchanged at one. The U.S. Rig Count is down 393 rigs from last year’s count of 790, with oil rigs lower by 372, gas rigs off 20 and miscellaneous rigs down one. The U.S. Offshore Rig Count was up one to 17, but down six year-over-year. Stock Market SentimentThe iShares 20+ Year Treasury Bond ETF (Nasdaq: TLT) was down for the second straight session with the afternoon low hitting $147.03. Prior and upper support from last March at $147.50-$147 was breached and failed to hold. A close below the latter would signal ongoing weakness towards $146-$145.50. Lowered resistance is at $148-$148.50.  Volatility IndexThe iPath S&P Vix Short-Term Futures (NYSEArca: VIX) was down for the second straight session after tapping a low of 19.95 ahead of the closing bell. Near-term and upper support at 20-19.50 was recovered. A close below the latter and the November low at 19.51 would be an ongoing bullish signal for the market. Lowered resistance is at 21.50-22.  Stock Market AnalysisThe SPDR S&P 500 ETF (NYSE: SPY) was up for the second straight session after trading to a late-day and all-time high of $392.90. Unchartered territory and lower resistance at $392.50-$393 was cleared and held. A close above the latter would indicate additional momentum towards $394.50-$395. Support is at $391.50-$391 followed by $390-$389.50. RSI is curling higher with lower resistance at 65-70 getting cleared and holding. A close above the latter would suggest additional strength towards 75-80 and levels from late August/ early September. Support is at 60.  SectorThe Health Care Select Sector SPDR Fund (NYSE: XLV) extended its winning streak to seven sessions with the intraday peak reaching $117.41. Current and lower resistance at $117-$117.50 was recovered. A close above the latter would signal continued strength towards $118-$118.50 with the current record high at $118.99. Support is at $116-$115.50 with backup help at $114.50-$114. RSI remains in an uptrend with lower resistance at 55-60 getting recovered. A close above the latter would indicate additional upside towards 65-70. Support is at 50-45.  Check back after the closing bell for the most important news and numbers in the WealthPress stock market recap. The post Stock Market Recap: Friday, Feb. 12, 2021 appeared first on Wealthpress.  |
| How Small Investors Can Hit It Big in Financings and Private Placements Posted: 12 Feb 2021 02:11 PM PST After seeing it firsthand 20 years ago for the first time… I was blown away by the results of one particular investment tactic. Seeing this for myself was my first real insight into how a few well-connected investors can gain extraordinary wealth in bull markets. And make double, triple and five times their money… even in bear markets. As I found out nearly 20 years ago — and have repeated many hundreds of times since then — there is, in fact, a secret to it. A secret I'm going to share with you today. In short, they take advantage of this obscure market security — called Equity Financings and Private Placements. It's a little-known investment that's usually off-limits to regular investors. Even though they're publicly issued, these investments are essentially "invitation-only" and fill up fast. I was hooked since the first time I found out about it in the early 2000s… You'll almost never hear private placements discussed on CNBC. And you'll never see their secret symbol pop up on YahooFinance, MorningStar, or anywhere else. They're completely off the radar of people that even pay close attention to the markets. In fact, as far as I can tell, these deals are completely off the radar of the mainstream media. And I should know. I've been featured on Forbes, Yahoo!, CNN, Bloomberg, and many other outlets and I've been a leader in the resource industry for nearly 20 years… Not once have I ever seen private placements mentioned. I've never even been asked about them in any of the interviews I've done.
But as I'll show you — it's actually easy to tap into them… Once you know how. How Equity Financings and Private Placements WorkWhen companies need to raise money to do things like building solar farms, wind farms, drill for oil, explore for gold or uranium, or develop a gold mine… They often do it through "private placements". They do this to raise money from high-net-worth investors who understand the opportunity and risks. A private placement also allows a company to sell shares to investors that are not listed on the stock exchange yet, but will be shortly. In a private placement, companies typically offer shares at a discount to the current market value. This discount is often in the 5 to 25% range. The price of shares and the dollar amount raised is negotiated in advance. For large investors, negotiating the price and the amount invested in advance is a huge positive. It means they can acquire large blocks of shares without dealing with the market's day-to-day fluctuations. It means the share price can't "run-away" and shoot 25 to 50% higher while a large investor is trying to acquire a position. Being able to acquire a large number of shares in a company at a set discounted price is enough to make private placements a very attractive investment vehicle for both large and small investors alike. The truth is that even regular folks can hit it big in these kinds of deals… For example, I encouraged a friend of mine, M.T., to invest in the Ryan Gold private placement we did a few years back. The result? His MBA paid in full — all from an initial investment of less than $5,000: "On Marin's recommendation, I invested $4,800 in a private placement with Ryan Gold. He turned out to be right, and the company soared in value. I sold my stake for more than $150,000, which paid for my MBA." Another friend of mine, M.S., got into another one of these deals. He told me: "In 2010, I got into the Bayfield Ventures private placement. Within five months, my $2,500 investment turned into $11,080, a 343% gain. I also invested in the Challenger Deep deal. I turned $2,500 into $14,310. My only regret is not putting more money into your ideas." But there's another aspect of private placements that makes them even more lucrative… Like icing on the cake. It's a very unique "add-on bonus" that can make you significant money (as it has for me) WITHOUT any additional capital or RISK. I've literally woken up some mornings, checked my brokerage account for this "add-on bonus" that I forgot I had, and it was up several hundred percent. Tomorrow, I will teach you about one of the most powerful upside kickers in the world. It's a way to amplify and supercharge your wealth and profit in these situations… And when it hits, it can really change your life for the better. Regards, Marin The post How Small Investors Can Hit It Big in Financings and Private Placements appeared first on Wealthpress.  |
| Buy It and Burn It: The Reflation Edition Posted: 12 Feb 2021 01:44 PM PST We're back with another segment of a fan favorite: "Buy It and Burn It." Today we're going over a great reflation trade idea for 2021. Earlier in the week, we discussed the rising inflation we're seeing as we inch closer to normalcy and the Federal Reserve keeps printing money. Everyone keeps asking, what is the reflation trade? What does this mean? It means that the dollar is becoming more abundant, which means everything we purchase regularly is becoming more expensive. Our advice is the same as it has been for most of 2021: Don't overthink it. There are too many obvious trades to worry about predicting the future. This reflation trade idea for 2021 is pretty simple as well. After one of our favorite sectors, cannabis stocks, took a nosedive on Thursday, you might be a little concerned about the "simple" picks. That's understandable, although we're still bullish on pot stocks long term. What To Buy in This Reflation Trade Idea for 2021Don't overthink this pair trade, either. Prices are beginning to climb as the economy faces an inflationary period. Where do we see this the most? Commodities and hard assets. So what do we buy? The SPDR S&P Metals and Mining ETF (NYSEArca: XME). This fund is catching a huge bid over our burn recommendation. That's largely because the underlying fundamentals of mining are concrete and iron-clad — pardon the puns. The demand for metals and economic growth right now is strong. Copper breaking out to all-time highs. Silver is breaking out. Steel is shooting upward. Mining is the place to be. But what are we burning? We'll give you a hint — it's another commodity… To find out the other half of our reflation trade idea for 2021, check out our video below. As always, feel free to email your trading questions to jeff@joyofthetrade.com and make sure to stay ahead of the markets and subscribe to my YouTube channel. P.S. If you've ever found yourself saying, "I wish I'd gotten into that stock earlier"… today might just be the day you retire that phrase. Legendary trader Adam Sarhan has developed a system that can alert him to stocks getting ready to experience huge jumps in their share prices. Invest in these companies before their shares soar… and huge gains are sure to follow. According to Adam, the number of stocks hitting "major gain territory" skyrockets during earnings season. And considering hundreds of companies are getting ready to report Q4 earnings this week, there's never been a better time to grab these huge windfalls. The post Buy It and Burn It: The Reflation Edition appeared first on Wealthpress.  |
| The Next Cannabis Wave Is Picking up Steam Posted: 12 Feb 2021 01:02 PM PST The third wave of the cannabis stock bubble is here, and this one will be the biggest. After two previous bull market runs that saw Canadian companies dominate in terms of market cap and trading volume, this time, it's America's turn. It is essential to understand the unexpected convergence of circumstances that have emerged to catalyze this next leg up. First and foremost, the victory of the Democratic slate in November last year shone a long-awaited ray of hope on the prospects for a federal cannabis regulation that is a prerequisite for interstate cannabis commerce. The second significant development came with the upset in Georgia of the formerly Republican-controlled Senate, handing all three branches of government to a democratic administration. To say this is the perfect storm is no understatement. The stars are now aligned, and the first peeps out of the Biden administration suggest there will be action on his commitment to decriminalize cannabis at the federal level and support initiatives to see cannabis become a pharmacological rising star. Companies are already on a tear, and few notable ones are still flying under the radar or have yet to become public. One that I bought into while it was the largest cannabis SPAC in history merged with Jay-Z's The Parent Company and is now gearing up for a NASDAQ listing, which will likely occur this year. The Parent Company is currently trading in Canada on the NEO under the symbol GRAM.U and in the US under the ticker GRAMF. Jay-Z's involvement is likely the signal that celebrities will be looking to align their brands with cannabis more aggressively with the Biden administration's rollout of a federal strategy. The company is the umbrella for Caliva, a California retailer with over 1 million customers and 200 dispensaries across the state, according to Michael Auerback, who put the SPAC together specifically for the cannabis business. The post The Next Cannabis Wave Is Picking up Steam appeared first on Wealthpress.  |
| Avoid This Unusual Options Activity Mistake: EA Acquires GLUU Stock Posted: 12 Feb 2021 12:36 PM PST There was big news for the video game industry this week: After the closing bell on Tuesday, Electronic Arts announced it was going to acquire Glu Mobile for $2.4 billion. However, days before the news broke, our system picked up unusual options activity… This activity was also mentioned on CNBC, but unfortunately those who just blindly followed the talking heads lost money. Our system, though? It was correct. The unusual options activity was a great signal that something was coming down the pipe. Here's a breakdown of that activity and the more strategic ways to trade this type of big-money options signal. The post Avoid This Unusual Options Activity Mistake: EA Acquires GLUU Stock appeared first on Wealthpress.  |
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