Author: Editor

Keep a close eye on green energy stocks.

Later this week, President Biden is expected to propose cutting U.S. greenhouse gas emissions by half by 2030 at a climate summit.

In fact, according to Barron’s:

“Biden invited 40 world leaders to the White House event, including Russian President Vladimir Putin. The invitees include 17 countries responsible for 80% of global greenhouse gas emissions. More than 300 companies, including Apple, Walmart and Johnson & Johnson, sent Biden a letter last week saying they were in favor of cutting emissions by at least 50%, while others worry Biden’s policies will harm the economy.”

China has already announced it will reach peak carbon emissions by 2030, and would achieve net-zero emissions by 2060. Even Russia is calling for greenhouse emissions to be lower than that of the European Union over the next 30 years.

The UK has even pledged to cut emissions by 68% from its 1990 levels by 2030. The EU has also committed to a cut of 55%, even though the European parliament favored 60%.

That being said, keep an eye on stocks like Ballard Power (BLDP), Plug Power (PLUG), First Solar (FSLR), SunPower (SPWR), Tesla (TSLA), and ETFs such as iShares Global Clean Energy (CLNE).

At the same time, keep an eye on rare earth metal stocks, like MP Materials (MP).

As noted by USA Today, “The route to meet climate change goals is clear: The mass adoption of electric vehicles and the global transition to renewable energy systems. However, the existing supply of metals needed for clean energy technologies is nowhere near sufficient, not in America nor across the world.”

Not helping, China which controls about 80% of global rare earth supply, is heightening its regulation of REE production to meet its own rising domestic demand. Should this be highlighted further, we could see a respectable rally in rare earth stocks and ETFs, too.

The world is also in desperate need of lithium, cobalt, and copper for example. It’s why we remain bullish on stocks like Albemarle (ALB), Lithium Americas (LAC), and Livent (LTHM).

The post The Top Stocks to Consider on Biden’s Greenhouse Plans appeared first on Morningology.

The cryptocurrency boom is unstoppable.

With retail and institutional interest on the rise, and a new IPO from Coinbase the global cryptocurrency market just hit a market cap of $2.24 trillion. Bitcoin is now up to $64,420. Ethereum is up to $2,738. XRP is up to S$1.78. Polkadot is up to $41.75. Mining stocks are following.

Helping, Coinbase will start trading today.

According to Blomberg, “The NASDAQ set a reference price of $250 for the direct listing.” If that’s the case, it would give the company a valuation of nearly $50 billion.

However, if the miners, cryptocurrencies, or red hot Coinbase IPO isn’t for you, take a look at the VanEck Vectors Digital Transformation ETF (DAPP), which will offer investors exposure to blockchain infrastructure.

“The digitalization of the global economy has been picking up steam for the past several years, and as digital assets1 mature, this has driven the growth of several innovative companies—not only miners of digital assets, but also digital asset exchanges, payments, services, storage, e-commerce and much more,” said Ed Lopez, Managing Director, Head of ETF Product for VanEck.

“To this point, however, investors have had to choose among funds that too often included companies only tangentially involved with digital assets. That is something we’ve sought to solve with the launch of DAPP, a fund we’re very excited to be bringing to market.”

Some of the ETF’s top holdings include Galaxy Digital (GLXY), Square Inc. (SQ), Marathon Digital Holdings (MARA), Riot Blockchain (RIOT), Voyager Digital (VYGR), and Paypal (PYPL).

Not only does the ETF offer diversification, it does so at less cost of buying each stock individually. DAPP last traded at $37.45.

The post This New ETF Offers Access to the Backbone of Blockchain appeared first on Morningology.

The Johnson & Johnson (JNJ) stock was hammered.

All after the US FDA asked states to temporarily stop using its vaccine “out of an abundance of caution,” says CNBC. This follows news six women in the U.S. developed a rare blood clotting disorder. One died. Another is in critical condition.

While that’s terrible news, “These adverse events appear to be extremely rare,” the FDA said in a joint statement with the Centers for Disease Control and Prevention, as quoted by CNBC. “Vaccine safety is a top priority for the federal government, and we take all reports of health problems following vaccination very seriously.”

In addition, Johnson & Johnson did say, “At present, no clear causal relationship has been established between these rare events and its vaccine,” as quoted by Reuters. Still, at the moment, it’s abiding by the US FDA ruling, and delayed its rollout for Europe, as well.

If an investigation into the issue produces no evidence of a causal relationship, the US FDA could again deem it to be safe. We saw something similar with AstraZeneca in Europe not long ago. Shortly after, officials declared it to be safe and effective.

Perhaps the same will happen with JNJ, too.

At the moment, shares of JNJ are down $3.88 a share to $157.76. From here, we could see a near-term test of double bottom support around $152.50. Also, keep an eye on RSI, MACD, and Williams’ %R. They’ll also tell us when the stock has slipped too much.

The post Johnson & Johnson: “No Clear Causal Relationship Has Been Established” appeared first on Morningology.

The crypto boom shows no signs of cooling.

With retail and institutional interest through the roof, digital currencies are exploding to new highs. Bitcoin is now up to $63,508. Ethereum is up to $2,266. XRP is at $1.76.

Even more impressive, the global crypto market just hit a $2.18 trillion valuation, which is just below the $2.23 trillion market cap of Apple. Better, Bitcoin’s market cap, according to Crypto Potato, is now bigger than Visa and Mastercard combined.

Helping, we’re getting closer to the launch of the Coinbase IPO.

In fact, as we mentioned on Monday:

“Since this is the first major U.S. cryptocurrency exchange to be publicly listed, it could be a major step towards the widespread adoption of digital currency and will go a long way towards legitimizing the industry. This is one of the big reasons why the company’s debut is attracting so much attention,” reported Entrepreneur.

Even major institutions are forcing digital currencies to higher highs.

Goldman Sachs’ David Solomon for example, says, “I think there’ll be a big evolution as to how this evolves in coming years,” adding, ““We continue to think about digital currencies and the digitization of money in a very proactive way,” he opined, mentioning specifically that his firm “can help clients facilitate custody positions in digital assets,” as quoted by Bitcoin.com.

There are even analysts predicting $100,000 Bitcoin. ARK Invest CEO Cathie Wood even believes, “$1 trillion in nothing compared to where this will ultimately be.”

Couple all of that with increased adoption from Visa, Mastercard, PayPal, Square, and dozens more, and you can see why cryptocurrencies are booming.

Remember, if cryptocurrencies aren’t for you, take a look at the crypto mining stocks for opportunity. All are exploding with the price of Bitcoin.

The post Bitcoin Now Worth More Than Visa and Mastercard Combined appeared first on Morningology.

Cryptocurrencies have gone ballistic.

Bitcoin is back above $60,000. Ethereum is now up to $2,147. Cardano is up to $1.30. All thanks to rapid adoption of cryptocurrencies by companies all over the world, institutional and retail interest, and a new IPO from Coinbase.

On April 14, Coinbase will come to market with a direct listing.
“While there is certainly an element of unpredictability with this business thanks to the volatility of cryptocurrency prices, that likely won’t deter investors from grabbing shares of the company when it goes public via a direct listing on April 14th. Coinbase is certainly an intriguing player in the burgeoning cryptocurrency industry, which is why we’ve put together a list of 3 things for investors to know about the company ahead of its big debut,” reports Entrepreneur.

“Since this is the first major U.S. cryptocurrency exchange to be publicly listed, it could be a major step towards the widespread adoption of digital currency and will go a long way towards legitimizing the industry. This is one of the big reasons why the company’s debut is attracting so much attention,” they added.

Earnings haven’t been too shabby either.

In 2020, the company generated $1.1 billion in revenue, and $322 million in net income. For the first quarter of 2021, the company saw $1.8 in revenue, which was better than the entire year of 2020. It saw $355 billion in trading volume, which was higher than all of last year.

Not only could cryptocurrencies, and crypto miners be some of the hottest opportunities of the year, Coinbase, which will list as COIN in just days, could be a powerhouse stock.

The post This Could be the Most Rewarding Opportunity of 2021 appeared first on Morningology.

One of the best ways to trade cryptocurrency mining stocks, like Marathon Digital (MARA) or Riot Blockchain (RIOT) is to follow Bitcoin technically.

In fact, if you look at a six-month chart of Bitcoin and MARA, for example, you’ll see that wherever Bitcoin goes, MARA is sure to follow. That’s obvious. Now, we just need to figure out exactly when to buy and when to go short, which we can do with technical indicators, including relative strength (RSI), MACD, and Williams’ %R.

When all three align at a specific point, that’s our indicator to sell.

In January 2021, for example, RSI became overbought above its 70-line after BTC rallied from $27,957 to $41,964. At the same time, we saw an unsustainable spike in MACD. In addition, Williams’ %R was overbought above its 20-line.

Not long after, BTC would fall to double bottom support around $28,817.

The same thing happened to Bitcoin in late February 2021 before it fell from $58,348 to $43,061, and again mid-March 2021. Granted, anyone can look at a chart and make a great call after the fact. But if you watch this particular setup moving forward, you’ll start to see exactly when and where to buy.

Each time BTC pulled back, MARA followed.

When all three align at a specific point, that’s our indicator to buy.

Now we want to spot buy signals.

In the case of MARA and BTC, each time RSI dips to its mid-range around 50, it’s a buy signal. We can confirm that potential buy with Williams’ %R when it dips to or below its 80-line. With MACD, we find better use for it when looking for tops.

Investors can use these same technical indicators with any stock, index, and ETF out there.

While I can’t guarantee it’ll give you 100% success, it’s another interesting way to spot opportunities in this crazed market.

 

The post One of the Best Ways to Trade Crypto Mining Stocks appeared first on Morningology.

Demand for electric vehicles is only accelerating.

Governments all over the world are moving toward electric vehicles. President Biden for example, “recently laid out plans to spend nearly $200 billion over eight years to support the surging EV industry. The administration is rumored to be eyeing an expansion of the tax incentive to consumers, which could be a big tailwind to sales at Tesla and its rivals,” says Wedbush analyst Dan Ives, as quoted by Yahoo Finance.

Many want far more electric vehicles on the road.

In fact, here in the U.S., California, Gov. Newsom signed an executive order that will ban the sale of gas-powered passenger cars in the state starting in 2035. We’re even moving towards a greener future with solar and wind. In addition, analysts tell us that by 2030, the world will see 125 million EVs on the road, as noted by CNBC.

General Motors wants to phase out sales of internal combustion engines by 2035.

“The auto industry is shifting from internal combustion technology to emissions-free battery and hydrogen powertrains. Several traditional brands have also committed to a complete transition, with Bentley recently laying out a target date of 2030 to switch entirely to battery-electric vehicles, or BEVs. Nissan this week said it will electrify all models by the ‘early 2030s,’ but that will include gas-electric hybrids as well as BEVs,” as noted by NBC News.

In short, investors may want to use any weakness in EV stocks as a reason to buy.

Look at Tesla (TSLA) for example.

Dan Ives just upgraded the stock to an outperform rating with a price target of $1,000. Helping, Tesla delivered 184,000 new cars in the first quarter of the year. That’s up 100% year over year, and comes in ahead of estimates for 177,000 vehicles.

“With a green tidal wave kicked off by Biden last week in the US, and global EV demand skyrocketing going after a $5 trillion (total addressable market) over the next decade, we believe these delivery numbers are a paradigm and sentiment shifter for the space going forward,” added Ives, as quoted by The Street.

Or, look at Nio Inc. (NIO).

The company just delivered 7,257 vehicles in March 2021, a new monthly record representing a strong 373% year-over-year growth. In addition, NIO delivered 20,060 vehicles in the first quarter of 2021, a new quarterly record representing an increase of 423% year-over-year.

Even Li Auto (LI) had impressive numbers. According to the company, it delivered 4,900 Li ONEs in March 2021, representing a 238.6 % year-over-year increase. This brought deliveries for the first quarter of 2021 to 12,579, up 334.4 % year over year.

Again, investors may want to use any weakness as a reason to buy EV stocks.

The post Use Any Weakness in Electric Vehicle Stocks as Buy Opportunity appeared first on Morningology.

Markets are skyrocketing at the moment.

The Dow is up 404.  The NASDAQ is up 184, as the S&P 500 soars about 58 points.  All thanks to higher expectations for a quick economic recovery on the heels of jobs numbers.  On Friday, we learned the economy added another 916,000 jobs, sending the unemployment rate to 6%.

“This reflects the lifting of restrictions, ramp-up in vaccinations and boost provided by the fiscal stimulus,” said Anu Gaggar, senior global investment analyst at Commonwealth Financial Network, as quoted by CNBC. “Faster jobs and wage growth can have an upward pressure on prices and test the Fed’s patience with easy monetary policy.”

• Leisure and hospitality jobs increased by 280,000 in March
• Construction added 110,000 jobs in March, following job losses in the previous month 
• Employment in professional and business services rose by 66,000 over the month. 
• Manufacturing employment rose by 53,000 in March, with job gains occurring in both durable goods (+30,000) and nondurable goods (+23,000). 
• Transportation and warehousing added 48,000 jobs in March. 
• Retail trade added 23,000 jobs in March. 
• Mining jobs were up by 21,000 in March.
• Financial activities added 16,000 jobs in March.

Better, the economy is expected to boom in the second quarter, especially if we see retailers, restaurants, hotels, gyms, and other businesses reopen.  If pandemic numbers don’t increase wildly, we could even see the Dow hit 40,000 this year.

One of the biggest problems we need to worry about though, is Russia.

There are fears of World War 3 as experts warn the Ukraine crisis could escalate in just weeks, reports Express.  “The expert said the West is right to be alarmed after unverified new footage appeared to show military movements in Russia’s Voronezh, Rostov and Krasnodar regions.”

Let’s hope nothing happens. 

The post We Could See the Dow at 40,000 This Year appeared first on Morningology.

Investors may want to consider semiconductor stocks, we said on March 2.

All because the worldwide shortage is now expected to last into 2022, reports MarketWatch.

Worse, says IHS Markit, as highlighted by Reuters, a shortage of auto chips could impact up to a million units of global light vehicle production this quarter. Technology is being hit hard, too with work and school from home trends increasing the demand for electronics. Electric vehicle maker Nio even had to halt production the other day due to these shortages.

It’s gotten so bad Taiwan Semiconductor Manufacturing wants to spend $100 billion over the next three years to help fix the issue.

“TSMC is entering a period of higher growth as the multiyear megatrends of 5G and [high-performance computing] are expected to fuel strong demand for our semiconductor technologies in the next several years,” the company announced, as quoted by Barron’s. “The pandemic also accelerates digitalization in every aspect.”

Top Ways to Trade the Shortage

With the current showing no signs of letting up soon, some of the top ways to trade the continued shortages are with Pro Shares Ultra Semiconductor (USD), iShares PHLX Semiconductor ETF (SOXX), and First Trust NASDAQ Semiconductor ETF (FTXL).

Other top stocks you may want to consider are Micron Technology (MU), which just ran from $80 to $93.57. If it can break above resistance, we could see a test of $100. Helping, the company just reported solid earnings. Revenue for example, came in at $6.24 billion as compared to $5.77 billion quarter over quarter.

“Micron’s strong fiscal second quarter performance reflects rapidly improving market conditions and continued solid execution,” said Micron Technology President and CEO Sanjay Mehrotra, as quoted in a company release

“Our technology leadership in both DRAM and NAND places Micron in an excellent position to capitalize on the secular demand driven by AI and 5G, and to deliver new levels of user experience and innovation across the data center and intelligent edge.”

The post Semiconductor Crisis Leading to Significant Opportunity appeared first on Morningology.