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MarketWealth Weekender
Folks, it's time for another weekly rundown! We're going to share our trade ideas and analysis — as well as our big winners — from the team at MarketWealth. So let's get into right now!
What a shakeout the month of February brought to the table, right?
But March is finally here, folks…
And the market hasn't exactly been good to us so far this month, either.
So now many investors and traders are asking me if this is just a pullback we're witnessing, and if there's more potential upside ahead. But we've been talking about a pullback since December. It was inevitable because prices were getting extreme and the market was way oversold.
With money from President Joe Biden's $1.9 trillion economic relief package potentially hitting the market soon, the level of liquidity we're seeing is unprecedented. And if you look at the fastest-gaining hedge funds, their portfolios remain focused on a few top tech stocks.
So I believe the current dip is just a much-needed pullback... to cool off overbought price levels... and to bring stocks back to manageable valuations. Not only are pullbacks inevitable… they're healthy!
And the tech stocks hedge funds are holding below have plenty more potential upside to go...
◼ JD.Com Inc. (Nasdaq: JD)
JD.com is a Chinese company that builds reliable platforms for customers in sectors like e-commerce, logistics, Internet finance and cloud computing. As China's second largest e-commerce company, JD.com is positioned to take full advantage of Chinese online shopping needs.
In fact, JD.com is one of my top F13 filing buys, which means the fastest-gaining hedge funds are holding this stock right now. The upside potential for this stock over the next eight weeks is about $1.10 to $1.15 per share and possibly more if the global economy picks up some speed.
◼Paypal Holdings Inc. (Nasdaq: PYPL)
Paypal is an American company that offers online payment solutions allowing customers to pay and get paid, withdraw funds to their bank accounts and hold balances of various currencies in their account. Its payment volume through its network is up 31% year-over-year.
Paypal has been up 150-plus percent over the past 12 months, and I'm seeing a price target of about $315 per share over the next two months if current momentum levels continue. The stock was in the top F13 holdings last quarter and is one of the fastest-gainers in the hedge fund world.
◼Sony Corp. (NYSE: SNE)
We all know what Sony does, right? It develops and manufactures consumer and industrial electronic equipment like audio and visual electronics, computer peripherals and even video game consoles.
Sony's stock is up 400-plus percent since early 2016. And while I haven't talked about this stock in a while, right now is a good time to get on board — especially with $1.9 trillion potentially coming into the hands of Americans who love to spend money on video games.
I hope that helps!
Now on to some…
BIG Wins!
We had a few more big winners this week from our Alpha Rotation and Global Fortune Accelerator services. The first was a play on Devon Energy Corp. (NYSE: DVN), and the second was on BorgWarner Inc. (NYSE: BWA).
DVN was our top stock pick in the Energy sector, and it gapped up Tuesday morning, continuing to trade higher. Although below our initial profit target, we were already up big and the market was far too choppy to risk a pullback, so we liquidated for a 92% gain!
- +91.7% on DVN (April 16 $22 CALL).
- Entered on Feb. 23 at $1.20 a contract.
- Exited on March 2 at $2.30 a contract.
Similar story with BWA... This time we reached our profit target and exited amid a volatile market that crushed so many stocks this week.
- +63.64% on BWA (April 16 $45 CALL).
- Entered on Feb. 23 at $2.20 a contract.
- Exited on March 2 at $3.60 a contract.
Alpha Rotation is made up of a position cluster of four ETFs that focus on sectors, and sector strength and weakness. We revolve in and out of the cluster once every two weeks (every other Wednesday), and rotation alerts are sent every other Tuesday after the closing bell.
You can buy options ranging from $2 to $6 per contract, and one of the four positions is generally a hedge (so say three calls and one put, or vice versa). This service works in both bullish and bearish markets. In bearish times, the cluster is more heavily weighted toward defensive sectors.
And as a bonus, we provide the top sector and top stock each week with entry, exit and trade management tips!
Folks, it really is that simple with our strategic, numbers-based services. We alert a trade when the data tells us to, and we exit when we meet our objective.
Be sure and sign up for Alpha Rotation for the potential to hit on more big winners like this!
If you have a big score you'd like to share with your fellow MarketWealth readers, email us your screenshots of the trade and/or any details you want to share at wptestimonial@gmail.com, and we'll celebrate them here!
Predictable Gains Each Month, You Say?
Did you know that for over a century, there have been cash floods offering regular folks the chance to make gains of 20%, 40% and even 100% or more on their trades?
These predictable money patterns happen at the start of every month. And when tapped properly, the people who know how to spot and play them make an absolute killing.
Joy of the Trade's Jeff Zananiri predicts these anomalies will continue to occur in the market for decades to come — and he has discovered the secret to consistently profiting from them.
Learn Jeff's Money-Making Trick
Stocks for America's Grand Reopening
We've been dealing with the pandemic for over a year now. With more stimulus and vaccine options on the way, now is as good a time as any to discuss stocks to target for America's reopening.
We've spent a lot of time talking about inflation and what we're seeing in big-name stocks.
And even though we've had some good trades, the market has been a little erratic. The best day the stock market has seen recently was on the heels of new vaccine news from Johnson & Johnson.
But now, as many in the U.S. expect another stimulus check, we're also looking to reopen. And Wall Street is already pricing in some stocks to target for reopening.
Joy of the Trade Head Trader Jeff Zananiri and I have some picks we like. Now, we should note that we aren't value traders, folks. We're looking for momentum!
Enjoy Being Lockdown-Free With These Stocks for Reopening
The FAANG stocks may be cooling off due to interest rates, but the Nasdaq is going to be pushed forward by some other stocks:
◾ Ulta Beauty Inc. (Nasdaq: ULTA) climbing back up is a sign that people are ready to go out again. They're buying beauty products and getting ready for a night out on the town. Now here's some numbers on the momentum I'm seeing: In October 2020, as COVID-19 cases saw another spike, Ulta was down at $201 a share. Earlier this week, Ulta was up 167% to $337 a share. Moves like that are going to keep the Nasdaq bullish... even as FAANG stocks backslide.
◾ RCI Hospitality Holdings Inc. (Nasdaq: RICK) is a company that needs the world open if it is going to have any success. Through its subsidiaries, this company operates gentlemen's clubs, nightclubs and more — yes, folks, you can buy stock in strip clubs. Obviously, with the world on lockdown, this stock will struggle. Since the beginning of February, RICK has climbed up 150%.
◾ DraftKings Inc. (Nasdaq: DKNG) is one of Jeff's favorite momentum plays and is a part of his Money Links service. This company is growing triple-digits in its top line. More and more states are opening up to sports betting, and DraftKings has built a moat around the industry. On top of that, it's getting into video game betting as well. Its user-friendly platform is an excellent business model and makes for a great pick. It's all about timing with this one, but the momentum is there.
Signing Off
If you're looking for more compelling trade ideas and stock market musings to 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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