| WE WANT TO HEAR FROM YOU I do a ton of sector analysis and use back-tested, proven strategies to beat the market. I use proprietary formulas based on relative strength to track the top 5 strongest stocks… You know, the ones I send you in my new weekly watchlist. But now I want to know which stocks you'd like to see rankings for! All you have to do is reply directly to this email with your tickers!
Now, on to the Weekender!
For a while now, Joy of the Trade Head Trader Jeff Zananiri has been right on the pulse of Chinese stocks. He was one of the first people to see the warning signs coming from the CCP before investors even realized there was a problem...
And now he's seeing another problem with Chinese stocks listed here in the U.S.
We are witnessing an interesting situation right now in China where old, outdated principles are conflicting with modern business practices.
And this has Jeff worried… No, it has him scared.
And there's a lot more to it than the country siding with the Taliban.
Chinese Politics Will Strangle Their Markets
The CCP doesn't want mega-corporations like we have here in the United States. As Jeff pointed out to me, U.S. citizens — especially those over the age of 40 — have accepted the fact that large companies are good for our economy.
But China doesn't want that. It doesn't want its citizens to have the power to become Jeff Bezos and build spaceships as a side project. And the thing is, the CCP has total control. We saw it when they wiped out the online education industry over a weekend.
There's no need to vote or gauge the temperature of the room. If Beijing says it's getting too big... it's gone. That's why we took a look at Alibaba Group Holding Ltd - ADR (NYSE: BABA), one of the biggest Chinese companies out there.
And I told Jeff, if it breaks just a little more, I could see it absolutely tanking. And why not? What incentive is there to try and be a big corporation in China if you're just going to get shut down?
And what's more, why invest there?
Traders like Ark Invest CEO Cathie Wood are a prime example. They are overexposed in China and I could see them getting the shaft because of it. So do yourself a favor and just stay away from Chinese stocks.
I hope that helps!
BIG Wins
We issued a bonus trade alert for HCA Healthcare Inc. (NYSE: HCA). After trading higher and noticing the stock was having trouble getting through a resistance level, we raised our stop loss. We issued an alert to take profits on Aug. 25, bringing in better than 56%!
56.7% on HCA (September 17 $250 CALL). - Entered on Aug. 12 at $3.70 a contract.
- Exited on Aug. 25 at $5.80 a contract.
Cash in on Triple-Digit Profit Opportunities — EVEN if the Price Barely Moves
This massive discovery could have helped anyone grab triple-digit windfalls from the markets from a simple "0.01" rating…
Chuck Hughes has been able to use this formula to signal a recent 96.2% win rate on over 100 positions…
And now for the first time ever, he's going to share it with the world.
3 Cybersecurity Stocks to Secure Your Portfolio for Years to Come
This shouldn't come as any surprise given the environment we're in, but cybercrime is increasing just as fast as computer networks are growing.
I mean, cybercrime will reportedly cost the global economy $6 trillion in 2021 — that's a BIG jump compared to the $3 trillion in damages done in 2015.
If it were measured as a country, it would be the world's third largest economy following China and the U.S.
And along with expanding cyber attacks, security has weakened thanks to a shortage in skilled IT skilled labor — even before COVID-19 struck.
These are the main reasons why traders will want to target cybersecurity stocks right now. And, luckily for us, I know exactly which names to take aim at...
Protect Yourself With These Companies
Unlike some other industries that have become largely consolidated and, as a result, lack innovation, startups will continue to dominate this sector.
And these startups will gain solid reputations in niche areas...
I see a strong continuation of fragmentation over the next few years, which will keep the industry highly competitive and fuel further growth.
In fact, it's obvious that the sector is gaining momentum right now thanks to extremely positive earnings from companies like...
◾ Palo Alto Networks Inc. (NYSE: PANW): This cybersecurity company reported earnings this past week and saw a big overnight jump as a result. After reporting $1.60 per share in earnings versus $1.44 expected, and revenue of $1.22 billion versus $1.17 expected, the stock jumped 11%! Revenue grew 28% year over year in the quarter compared to 24% in the prior quarter.
It was trading at new highs earlier this week, so while it may not be a buy right now, it's a positive sign for the cybersecurity space as a whole. Assuming the landscape of networks increases — which is almost a certainty with the increase in networks and global internet usage — there will be strong upside for the next quarter or even longer.
◾ Fortinet Inc. (Nasdaq: FTNT): Fortinet provides network security appliances and unified threat management solutions to enterprises, service providers and government entities worldwide. And the numbers are fantastic, folks...
It has a one-year return of 134.48% and five-year earnings growth of 1,642.86%! It's had four consecutive quarters of positive earnings estimates and surprises, which is super positive for the stock in the near term. It has eight strong buy recommendations and I have a price target of $330 per share over the next quarter. Based on the upside we're seeing from it and Palo Alto, there's a good chance we hit that.
◾ Radware Ltd. (Nasdaq: RDWR): This cybersecurity stock develops, manufactures and markets products that manage and direct internet traffic among network resources. This enables continuous access to websites, applications, content based on internet protocol and other services.
With a one-year return of 29.83%, earnings-per-share growth of 33.33% versus the previous quarter and EPS growth of 71.43% versus the previous year, RDWR is doing something right. It's had four quarters of positive earnings estimates. I have a price target of $40 per share over the next quarter, especially if tech starts sizzling back up, which is a strong possibility.
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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