Trading Tips Blog

1 2 The technology sector has been a huge outperformer for well over a year. If you were to take a ratio of the tech-heavy Nasdaq 100 to the S&P 500, you would see the trend in the relative strength highly favor the Nasdaq since the December 2018 low. It’s not exactly unusual to see technology lead in a bull market, but that’s not exactly what we’ve been experiencing. However, the predominance of a handful of tech names have weighed heavily on ...
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1 2 As many parts of the country look to partially reopen after May 1, the opportunity appears to be filtering down to the retail space that has been hit hard. Since April 3, 2020, the SPDR S&P Retail ETF (XRT) has underperformed the S&P 500 by nearly 15%.  That certainly makes sense given the fact that many stores are closed and may see earnings get hit hard if we enter a major recession. However, like many stocks, the market ...
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1 2 As you look at the major market indices, the movement is being dominated by a handful of stocks. You can probably reel off their names by heart because you probably use their devices, software, shopping platform or social media app. These behemoths are the market, and so when the market goes down, these stocks will likely lead it lower. As a result, trying to look behind the scenes at companies that don’t drive the market can be significant. Since indices typically ...
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1 2 A real estate investment trust is a company that owns, operates or finances real estate. The corporate structure is a pass-through entity for tax purposes as investors pay taxes and not the company. One requirement of the REIT to keep this status is that they have to pass through 90% of the company’s taxable income as dividends. This feature is attractive for investors seeking current income and it helps the REIT attract capital for investment in real estate projects or ...
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1 2 On Saturday, President Trump continued to tout a potential treatment to combat COVID-19. He said, “HYDROXYCHLOROQUINE & AZITHROMYCIN, taken together, have a real chance to be one of the biggest game changers in the history of medicine. The FDA has moved mountains – Thank You!” That statement followed statements he made earlier in the week that this drug was being tested as a treatment for COVID-19. Hydroxychloroquine (HCQ)  is a drug that is used for prevention and treatment of ...
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  American Homes 4 Rent (AMH) is an Agoura Hills, CA residential REIT that is the leader in the single-family home rental industry. They acquire, develop, renovate, lease and operate single-family homes as rental properties. AMH announced their earnings on February 27, 2020. The initial reaction was to move lower but finished higher on the session and then retested it’s prior high near $30 within a few days. The price has retreated slightly from its high and looks poised to retest it ...
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These companies should be able to hold their own and even thrive.
The market has flipped from greed to fear as concerns over the coronavirus outbreak spreads. In the span of a week, stocks sold off over 10 percent. That’s only the sixth time since the financial crisis that a drop has been that steep. There could still be some downside, but a combination of solid growth plays and pre-coronavirus laggard companies could do well for investors here. That’s because, in time, fears will ...
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The April $75 calls on
Qualcomm (QCOM) saw a 17-fold rise in volume, going from 253 open contracts to having over 4,350 trade hands. The bet, expiring in 46 days, is already about $2.30 in the money given the recent share price of $77.30. The trader buying the shares paid about $5.90 per contract. For the option to profit at expiration, shares would need to be back over $81. Even with the recent market rout, shares of Qualcomm are still up about ...
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