I’m adding a bit more timeliness to this weekly video slot by moving away from my Trend of the Week series and changing it to “Hot Button Moves NOW” to highlight action you can take now.. Today’s Hot Button Moves NOW video is: Put Options on the S&P Regional Banking ETF (KRE). This is a play on continued trouble in the regional banking sector. New York Community Bank has just been downgraded to junk by Moody’s, (due to its real estate loan portfolio) and has dropped by 60%, taking the regional bank sector along with it. Last Monday I bought puts for April 24 at 14 strike price for $2.09 each and the put price has gone through the February 7 date when I recorded this video. I don’t think this is the end of regional bank trouble so I’ll be holding on to these puts until the bad news subsides. This is a good way to take advantage of some of these dips in the market and hedge risks. For more options and volatility stocks, subscribe to JubakAM.com.
Special Report: 10 Penny Stock Home Runs Pick #3 ESS Tech (GWH). The stock of this maker of iron flow, utility scale, long-draw-down batteries ticks all the boxes for my Penny Stock Home Runs.
This one is very simple. When the price of lithium rebounds, high-quality low-cost lithium producers will see the revenue roll in. That’s why I’d got the world’s leading lithium-producer Albemarle (ALB) in my long-term 50 Stock Portfolio. But a smaller, high-quality, low-cost producer like Australia’s Pilbara Minerals will show gains even higher than Albemarle since the current price of $2.29 a share comes close to discounting the company’s survival.
Nothing like a bank surprise to get Wall Street in a lather. On Wednesday, January 31, New York Community Bancorp (NYCB) announced that it would cut its dividend and add to reserves against losses in its commercial lending portfolio. The stock fell 38% on Wednesday to hit a 23-year low on Thursday. The bad news wasn’t limited to U.S. banks either.Tokyo-based Aozora plunged more than 20% after warning of US commercial-property losses Frankfurt’s Deutsche Bank more than quadrupled its provisions against U.S real estate losses. I don’t see any reason to think that this is a one-day phenomenon. Or that the damage is just a minor problem in a few portfolios. Billionaire investor Barry Sternlicht warned this week that the office market is headed for more than $1 trillion in losses. “This is a huge issue that the market has to reckon with,” Harold Bordwin, a principal at Keen-Summit Capital Partners in New York, which specializes in renegotiating distressed properties, told Bloomberg. “Banks’ balance sheets aren’t accounting for the fact that there’s lots of real estate on there that’s not going to pay off at maturity.” On Monday then, I’m adding Put Options on the SPDR S&P Regional Banking ETF (KRE).
Usually I start off one of these stock-picking Special Reports by building a paradigm that I can use to screen for the kind of stocks I’m looking for. For this Special Report: 10 Penny Stock Home Runs I’m going to reverse that process and begin with the 10 picks.My first pick is Luminar Technologies.
It’s important to remember exactly how young artificial intelligence is as a market product. I certainly don’t think it’s possible to project the long-term winners on either the software or hardware side. Remember the days when Apple (AAPL) thought it was worth buying a Super Bowl add to urge consumers to smash the IBM PC empire? But I do think the hardware road map is petty clear for the next two to three years. Which is why I’m adding shares of Advanced Micro Devices to my portfolios tomorrow.
GREATER Growth Stock Pick #10: Qualcomm (QCOM). I think the market and the current stock price are missing a good prt of the growth story for Qualcomm. Which is why I find the stock undervalued enough to buy here. Right now the market disagrees. However, I’ll be adding the stock to my Jubak Picks and Volatility Portfolios on Tuesday, January 16.
This change at the top of the electric car market was widely expected. The only debate was whether it take place in the last quarter of 2023 or early in 2024. Now, we know. With both Tesla (TSLA) and BYD (BYDDF) reporting fourth quarter delivery numbers in the last few days, the switch at No. 1 is now complete.
GREATER Growth Stock Pick #8: BYD (BYDDF). I know; I know. What’s a Chinese stock doing on this list? It’s here because BYD, not Tesla (TSLA) is the big growth story in electric vehicles and not just for this month–but for years. And because I can see two catalysts that are about to power this stock higher. Morningstar calculates that BYD is 20% undervalued right now. Because this is a China stock we’ll need to take a deep look at valuation later in this post. But first, the growth story.
Are you glad that the stock market correction is all over? So why am I buying more VIX Call Options?
Whew. Glad that’s done with. No more worries about rising interest rates or higher bond yields. No more fretting over lower earnings and revenue guidance for the fourth quarter and 2024. No more nightmares about a wider Middle East war. Or a government shutdown on November 17. Or…
Well, you get the idea.
I don’t think any of these things are behind us. The rally of the last day and a half–I’m writing this at 1 p.m. Nw work time on Thursday–is a product of a little bit of possible good news from the Fed and from the U.S. Treasury (on a small reduction in the size of the next Treasury auction) and a temporarily oversold market resulting from a lot of bad days in a row. I’m not saying this is just a dead cat bounce (you know the image–even dead cats bounce, but they don’t bounce far). Good news from Apple (AAPL) on earning and revenue after the close today. And tomorrow’s jobs report for October could be weak enough to keep the “Fed is done” narrative going without being so weak that it resurrects fears of an economic slowdown.
I’ve hi-lighted the key characteristics of the coming global debt bomb explosion that investors MUST include in any plan to protect a portfolio from the explosion of this bomb.
Gold was up 1.9% in trading on COMEX today to $1876 an ounce on war in Israel and Gaza and fears that it would become a wider conflict in the region. I’ve been looking for an exit from two of my gold positions for a while now. And tomorrow is a good exit point, I think.