We’re getting ready for our Annual Party here in Baltimore.
But the entire team won’t be able to make it given the ongoing pandemic.
My beloved Dallas Cowboys were supposed to play last night. And I was all set to attend in Baltimore. But the league had multiple setbacks with the Ravens.
So, what’s the good news on Friday?
How about the gains that I’ve been pulling in for the better part of six weeks. The post-election rally has pushed the Dow back above 30,000. Let’s talk about the new stimulus in play, the dollar, and today’s jobs report. Then, we’ll dive right into the Friday watch list.
This morning, investors are focusing their attention on the jobs report, ongoing stimulus talks, and the Georgia elections.
I think that the more important story right now is that the U.S. dollar is sitting at a 2.5-year low. Over the last seven months, the Federal Reserve turned the dollar — at the time, the world’s safest asset – into one of the most dangerous to own.
The dollar index – which tracks the strength of the dollar against a basket of its global rivals – has fallen to its lowest level since 2018.
As I’ve noted, the supply of the dollar is a big part of this. The Fed has printed 40 cents this year for every dollar that was in circulation before the pandemic.
When people ask – why is the Dow and S&P at all-time highs, there is a direct relationship between the amount of money sloshing around and the market. We are in a very unusual pattern right now, because almost all of our economic fundamentals are out the window. The market will pay attention to the Jobs report at 8:30.
Too often, you get a lot of media hype each month about the jobs report. Then, you never hear about that jobs report again.
Investors will then ignore the results and speculate on the wall of money that it anticipates coming on January 20.
Many long-term investors would like to see a selloff. They’d use any pullback to buy into the market.
But too much FOMO has people ignoring the negative news and instead focused on the stimulus and a vaccine.
Banking on a Cure
Speaking of a vaccine, Pfizer (PFE) fell yesterday after the company announced it had cut its vaccine delivery target in half.
The reason: It is facing massive logistical challenges. I anticipated that this was going to be a problem. Phase One of the vaccine challenge was the race to produce it. Phase Two is the race to deploy. I expect that a few companies will need to step up to ensure the timely delivery of this cure.
I’m convinced I have found three stocks that will be the biggest winners in the months ahead. I’ve put all of them into a new report. The market is turning its attention from vaccine development to the deployment to billions of people. But – because there is one tiny company on this list – I’m only giving my new report to my Portfolio Accelerator readers. get your copy here.
MY STOCK WATCH LIST
GOGO: Recently I’ve been eyeing Gogo Inc. because of its late-August rally. The stock checks a lot of boxes this morning. Wall Street has a price target north of $11.50. Technicals are strong. The sentiment is positive. But there has been a lot of insider selling over the last three weeks. I’m being cautious right now, and I like an entry point of around $10. But I might want to look at $9.00 if we see a pullback like we’ve seen from near-term highs on Monday.
NLS: Shares of Nautilus pulled back yesterday 6.8%. The stock is now off sharply from its 52-week high… but remains up more than 1,000% from its lows. It’s been a solid coronavirus stock for the workout at home market. The short-sellers have piled in against the stock, and I think that they might be surprised very soon. I’m looking at an entry point of around $17.50 in the next two weeks.
KODK: Hedge funds have been getting out. The sentiment is low after its loan controversy. And the fundamentals are ugly. But the technicals suggest a good potential entry point for Eastman Kodak around $7.00 per share. There is still a large amount of short interest here that I’m looking to exploit.
TSLA: As I noted yesterday, Tesla continues to rally. Now Goldman Sachs has increased its price target to $780. That’s another 30% from here. Even Jim Chanos – who has long been a Tesla bear – cut his short position and congratulated Elon Musk. The fundamentals don’t matter anymore for this stock. It’s now viewed as a store of value for the future by many investors.
Other stocks to watch: SPI, SWI, DG, IAC, IEX, MEG, DOCU, BILL