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Why You Should Target These 2 Smaller Growth Stocks in 2021

Posted: 12 Mar 2021 08:44 AM PST

The Nasdaq has taken a breather over the past few weeks… 

In case you don't know, the Nasdaq is a large market-cap-weighted index that mostly tracks technology and internet-related companies. 

You can thank the recent inflationary pressure for that one, folks. 

But now many investors and traders are asking me if it's the end of the wild bull run we've witnessed over the past decade. 

So in today's video, I'll show you what trading action you can expect to see over the next few weeks. And be sure to stick around until the end because I'm also giving away two smaller growth stocks to target in 2021. 

2 Smaller Growth Stocks To Target in 2021 

I believe the next leg of the record long bull market run is actually just getting started — especially given the massive $1.9 trillion economic stimulus bill that was just approved. 

If you take a look at most major indexes, they’re either at or near new highs right now. And the only stocks showing some stress are the ones that skyrocketed during the stay-at-home environment that's been heating up large-cap tech for nearly a year.

I understand why many investors are concerned that the pullback in large-cap tech will spill into other sectors. 

But my response to that is simple: What we're seeing is a healthy correction. 

And once next quarter's earnings come out…  Assuming they're better than expected, investors who are nervous about the earnings-per-share yield on large-cap stocks will feel safer about the return vs. the yield from the bond market, which have been rising and causing pressure on tech.

I expect momentum levels over the next few months to subside, which needs to happen before large-cap techs can go higher. 

But as far as today, I want to talk about two smaller growth stocks to target in 2021 I believe will outperform the broader markets. 

And because they're smaller stocks, both of them are a little bit under everyone's radar. 

So check out my short video below to reveal the two smaller growth stocks to target in 2021, and be sure to share your thoughts in the comments section below. 

And as always, don’t forget to subscribe to my YouTube channel if you haven't already so you can be notified as soon as I post my next video! 

 

P.S. Look, the stock market is unpredictable… 

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And luckily for you, I've come across a trading strategy that could bring you some calm during this market storm. 

This stress-free strategy allows you to capture more gains when a stock rallies without leaving large profits on the table. 

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The post Why You Should Target These 2 Smaller Growth Stocks in 2021 appeared first on Wealthpress.

Why the Nasdaq Is Struggling So Much Today

Posted: 12 Mar 2021 06:39 AM PST

Global stock markets and U.S. futures are mixed this morning despite the S&P 500 closing Thursday at a record high.

But look at the Nasdaq, folks…

It was down 175 points as I filmed this video! And if you look at its chart, the Nasdaq hit its 50-day moving average, just like I expected, but backed away from that level, which tells me momentum levels still need to cool off.

In today's video, I'll cover why the Nasdaq is struggling so much today… the biggest factor impacting large-cap tech stocks right now… what the PPI report will tell us about inflation… how to take advantage of the current market cycle… one hot energy stock to watch… and one weak tech stock you'll want to sell, short or liquidate. 

 

P.S. Most folks don’t know this… but Wall Street runs on a secret calendar. 

It trades some of the same stocks on the same date every year! 

Thanks to this calendar, it doesn't matter if a stock has been struggling or if market conditions are terrible… when the dates roll around, these stocks generally go up!

All you need to know is when these stocks could skyrocket… and you have the potential to unlock consistent winners all year long. 

Legendary trader Tom Busby's proprietary dashboard alerts him when a stock's "Prime Window" is approaching… and he wants to give you access to it.

Click here to unlock this simple trading trick now.

The post Why the Nasdaq Is Struggling So Much Today appeared first on Wealthpress.

Sell the RIP: China Is Showing Us This Is Not a Rally To Chase

Posted: 11 Mar 2021 02:15 PM PST

Yes, I know, the S&P 500 is back to all-time highs.

Yes, I know that the big-tech companies are on the move again.

Yes, I know we just passed another $1.9 trillion in government stimulus.

But the pandemic-related gains made in big tech, small tech, big box retailers, green energy and housing/home goods suppliers aren't really the things driving this rally.

If I go back a week and use a heatmap of the S&P 500, I can show you… It's plain as day.

Source: Finviz

Lots of big tech and pandemic names are still faltering — Apple, Nvidia, Netflix — while dumb old energy, basic materials, industrials and financials are crushing it.

If I go back a month, the heatmap… Well, it starts to get ugly.

Source: Finviz

Lots of red in there… LOTS of red.

Amazon down 8%, WalMart down 9%, Apple down 12%, Nvidia down 14% and Tesla down an incredible 22%.

Moreover, they will have difficult year-on-year comparisons because they won't benefit from the pandemic like they did in 2020. Instead, their growth will slow down.

So once again, it's dumb old energy, basic materials, industrials and financials carrying the market load for now.

They're the ones pushing us up to all-time highs, not the big boys.

And if you want to know the reason behind it, I can just show you this photo I took earlier today.

Image

Source: My phone, Target, Inflationary Pressures

That's not a typo, I had to spend $65 to get TP and paper towels earlier today… It's almost the same size as my monthly cell phone bill.

Inflationary pressure like this is ripping through the economy, and that affects real people.

But it also pushes up interest rates, which help financials.

It is pushing up energy costs, which is helping oil producers.

And in turn, that is pushing up materials costs, which helps basic materials and industrial companies charge more for their products.

But once prices get too high, a funny thing happens… People stop buying.

And that's already happening in China

China Has Entered a Bear Market

When China slows down or stops buying we can see it develop in their inventory data.

For instance, as a proxy for construction, we can use rebar inventories, which are nearing the all-time highs set when they shut down due to the pandemic.

Source: Bloomberg

Same with copper inventories…

Source: Bloomberg

Iron ore inventories are on the rise…

Source: Bloomberg

And crude oil…

Source: Bloomberg

And fuel oil…

Source: Bloomberg

New orders — or as I like to think of it, future demand — have declined for two straight months.

Source: Bloomberg

And these bearish indicators have been part of the reason that China's stock market has been in free-fall since February.

Source: Bloomberg

What people underappreciate in my opinion, however, is that China is the largest trading partner of many countries around the world, including this one. 

And as we learned last year, when China's supply chain starts to bottleneck, bad things can happen.

In other words, problems in China eventually become problems in the United States because they export them to us.

That shipping time takes about a month, which also coincides with the lag between China's COVID-19 related market crash and ours…

Source: Bloomberg

So while I have no idea why the slowdown is happening in China, there's no denying it exists.

There's also no denying it could eventually affect our markets.

So we're selling this rip in non-inflationary names just in case, closing out of Designer Brands Inc. (XNYS:DBI) at +27.8%, Bright Horizons Family Solutions Inc. (XNYS:BFAM) at 25.2% and Sun Communities Inc. (XNYS:SUI) at around a 2% gain.

If this volatile period calms down, we'll be back in those.

It's also fine to short China large-cap companies here, which can be done through the iShares China Large Cap ETF (ARCX:FXI).

Though I've said it before, it bears repeating to always keep losses small. As an example, I use trailing stops anywhere between 3-10%, and I sell incrementally on the way up. Everyone has gotten burned that way a few times… It's a lesson that has to be learned.

With regards to market conditions — I'm not entirely sure if this blip in China is temporary or the start of a new, more serious downtrend in the markets.

If it's the latter, it could spread to the rest of the world quickly.

So, I'd rather miss out on a little bit of a run higher than risk a loss.

All the best,

Matt Warder

The post Sell the RIP: China Is Showing Us This Is Not a Rally To Chase appeared first on Wealthpress.

Crown Mining: The Stock To Capitalize From the EV & Clean Energy Switch

Posted: 11 Mar 2021 11:52 AM PST

After a long period of being range-bound below $5, copper has jumped 30% in the last few months. The demand for copper is only going to grow from here on out as well. Both due to global supply shocks and the switch to clean energy.

Renewable energy sources such as solar, hydro and wind require up to 12 times more copper than traditional fossil fuel alternatives. The demand for copper for electric vehicles is expected to increase by 1,700 kilotons by 2027.

Currently, the supply of copper can't keep up with this new demand.

Dr. Copper himself and CEO of Crown Mining Corp (OTCMKTS:CWMZF) (CVE:CWM) Stephen Dunn joins Midas Letter to outline the inherent opportunity the rise in copper prices has for the company about to change its name to U.S. Copper. Stephen Dunn has over 30 years of experience in the investment industry and has been a director of numerous resource companies.

Crown Mining is sitting on over two billion pounds of copper and has recently raised about $2M for new, fully-funded drilling campaigns. With the renewed interest in U.S. copper production, the rise of the underlying commodity price and government support for strategic metals projects, Crown is looking ideally positioned to capitalize.

Watch the full interview to see what drill programs are running, the deposits Crown is sitting on and an outline of what is driving the copper price.

The post Crown Mining: The Stock To Capitalize From the EV & Clean Energy Switch appeared first on Wealthpress.
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