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These are the items I’m watching for the coming week. I don’t expect it to be that busy, though I do think that the general economic indicator that I use to track the basic economic cycle will move to a “yellow” rating. That means I’ll move out of my levered positions for the stock market, but that doesn’t affect the industry-specific positions (unless it were to turn red).
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Overall, the cycle is still rated a “green” by my algorithms.
I think that could deteriorate a little. Basically, the general economic health of the country is ok, but jobless claims are up to almost 1,000,000 again.
The futures market, which is one of my crucial indicators, suggests short term bumpiness, and that’s why, by Wednesday, I think this indicator will flip to yellow.
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Overall, the sector is rated a “green” by my algorithms.
Nothing too surprising here. The crypto space will continue to move upwards provided the basic economic cycle is good and Bitcoin does not crash down more than 35% from its all-time high (just over $41,000).
The Bakkt crypto exchange and platform is being taken public through a (S)pecial (P)urpose (A)cquisition (C)ompany = SPAC. A key thing you need to know about these companies is that they have a downside limit of $10 — you can’t lose more than that. It’s currently trading in the $14 range, and I expect it to rise a lot if Bitcoin breaks beyond its $41,000 all-time high. I think of this is as a leveraged bet on Bitcoin (2x).
Comments
Overall, the sector is rated a “green” by my algorithms.
$RIG has made the most (but could still go bankrupt). It will only be profitable if West Texas Intermediate oil goes above $65 a barrel, which it probably will.
I’m waiting for another pull-back on oil prices to buy more.
The safest stock in this space is $SLB, but $NOV, $DNOW, and $VLO are pretty safe bets too — and I’ve made 40% on just the stock. With call options, you could probably make more than 100% each.
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Overall, the sector is rated a “green” by my research.
These have been absolutely amazing and I expect the run to continue through the end of 2022.
It seems likely that the stock price of $TLRY and $CGC could 3x from this point, making call options quite attractive on a pull-back.
Decriminalizing marijuana, likely soon under the Biden admin, will make these pop. Also, New York aims to legalize recreational use soon, officially introducing a huge market.
A recently merged, post-SPAC company, trading under $GRAMF, is aiming to be the new king of US-based companies and part of their holdings are Jay-Z’s Monogram, the high-end marijuana dealer in California.
Comments
Overall, the sector is rated a “green” by my algorithms.
The EV space has been booming in part because a Biden presidency is thought to be accreditive to the green economy business.
It is definitely bubbly and I stayed out of it until I could figure out what the industry indicator was. Presently, I think it’s just $TSLA’s price. As long as that’s doing well, I think this space looks promising.
It’s a bit like cryptocurrencies, though. So I’m waiting for a pull-back to pick up some smaller EV companies, like $GOEV, that will presumably soar as long as $TSLA continues in its direction.
That’s it for this week!
Notes & Disclosures
General financial disclaimer: I am not providing advice on financial investments and I am not a financial advisor. I am only explaining how I think about this process and revealing my own positions. Please do your own due diligence before investing in anything.