Author: Editor

Vaccine stocks could be some of the top performers of 2022.

In fact, just yesterday, Pfizer (PFE) was up about $2 to $52.25.  Moderna (MRNA) was up about $12 to $150.  BioNTech (BNTX) was up about $16 to about $152 a share.

All as the coronavirus makes its rounds – again.

China, for instance, is battling another wave of coronavirus infection. Millions of people across China are on lockdown.  Schools in Shanghai are closed.  Worse, “China, the last major country to relentlessly pursue a Covid-zero policy, reported 1,437 cases across dozens of cities on Monday. That’s a fourfold jump in a week,” says ABC News.

Also, cases are mounting again in Germany, where the German Health Minister says the situation has become “critical,” according to DW.com.  

“We are in a situation that I would like to describe as critical,” Lauterbach said at the weekly coronavirus press briefing in Berlin. “We have strongly rising case figures again. […] I keep reading that the omicron variant is a milder variant but that’s only true to a limited extent.”

Then, to prevent a potential resurgence in other parts of the world, Pfizer CEO Albert Bourla says a fourth booster vaccine is necessary.  As reported by NBC News, “Bourla said Friday that Pfizer’s scientists are now seeing the protection from the initial booster shot begin to wane against omicron after three or four months, meaning a fourth dose may be needed.”

Making things worse, another variant – called Deltacron – is reportedly making the rounds. Reports say this one combines the elements of delta and omicron.

With the virus spreading again, do keep an eye on vaccine stocks.

Markets

• The Dow is down about five points to 33,830
• The S&P 500 is up about four points to 4,167.75
• The NASDAQ is up 40 points to 13,084.75
• Gold prices are down about $28.14 to $1,924.16
• Bitcoin is down about 1% to $38,676.84
• Oil prices are down about $6.28 to $96.73
• The VIX is up 1.37 points to 32.12

Trading Tips

It’s March Madness, baby!

The 2022 NCAA Tournament is about to tip off, creating a big opportunity for sports stocks.

According to Sporting News “The 68-team for the NCAA Tournament is set and soon, college basketball fans will be able to sit in front of their TVs and streaming devices and watch 12 glorious, consecutive hours of the sport. The behemoth tournament will feature a whopping 67 games with the final one determining the champion for the 2021-22 college basketball season.”

With that, investors are rolling the dice on sports betting stocks… Read more here.

Insider Buying – Crocs Inc. (CROX)

The pullback in CROX may be overdone.

Not only is the stock wildly oversold, but insiders are buying at these low prices.  Director Doug Treff paid $1.5 million for a total of 17,700 shares, at an average price of $84.13. Crocs Chairman Thomas Smach paid $986,025 for a total of 11,897 shares, an average price of $82.88.

Making Headlines 

• Russians ‘could buckle in 10 DAYS’
• US economy flashes a recession warning sign
• How plausible is Chinese military aid for Russia?
• Oppenheimer Bets on These 2 Stocks; Sees Over 40% Upside Potential
• IPOs Are Mostly on Hold. This Company Is Listing Anyway.

Inflation is just a bit out of control.

With the cost of gas, food, and housing, consumer inflation rocketed 7.9% year over year – the worst spike we’ve seen since 1982.  Thanks to the war and the Federal Reserve printing trillions of dollars, it’s only gotten worse.  

However, there’s hope inflation will cool off a bit this week.

On Wednesday, the Federal Reserve is expected to raise rates by a quarter percentage point from zero.  However, the Fed has to be careful here, especially with the Russia-Ukraine war threatening to slow economic growth.  Not only does the Fed need to cool inflationary fears, it needs to avoid inducing a potential recession.  

In fact, according to CNBC: “The central bank’s statement and comments from Fed Chair Jerome Powell on Wednesday will be closely watched for guidance on how central bank officials view the Ukraine crisis, and how much it could affect their outlook and the path for interest rates.”

Here’s hoping the Fed gets it right this week.

Markets

• The Dow is up 330 points to 33,143
• The S&P 500 is up about 38 points to 4,230.75
• The NASDAQ is up 88 points to 13,377.25
• Gold prices are down about $24 to $1,964.32
• Bitcoin is up slightly to $39,076.61
• Oil prices are down about $5.40 to $103.90
• The VIX is up slightly to 30.54

Trading Tips

Inflation is a tad out of control – just a tad.

With the cost of gas, food, and housing, consumer inflation rocketed 7.9% year over year – the worst spike we’ve seen since 1982.

And, according to MarketWatch.com: “The numbers are eye-watering, and there is more to come,” said Eric Winograd, senior economist at asset management firm Alliance Bernstein. “The peak in inflation will be much higher than previously thought and will arrive later than previously expected.”

Unfortunately, the White House expects to see “substantially” higher inflation moving forward, which is just so comforting to hear.

According to the Washington Examiner: “The White House Council of Economic Advisers noted that ‘there has been substantial run-up in energy prices since February resulting from the Russian invasion of Ukraine’ and that ‘energy and commodities prices will likely contribute substantially to inflation in the coming months.’”  

 Here are a few potential ways to protect your portfolio.

Insider Buying – Crocs Inc. (CROX)

After getting stomped, CROX insiders are buying.  Director Doug Treff paid $1.5 million for 17,700 shares, at an average price of $84.13. Crocs Chairman Thomas Smach paid $986,025 for a total of 11,897 shares, an average price of $82.88. 

Making Headlines 

• Catastrophic Inflation: “I’ve Never Seen Prices Jump This High, This Fast”
• Average US gas price rises 22% in two weeks to record $4.43
• Russia-Ukraine war: Key things to know about the conflict
• ‘The Batman’ screening features guest appearance: A real bat
• A Ketamine Clinic Treads the Line Between Health Care and a ‘Spa Day for Your Brain’

Here we go again…

Two years into the pandemic, economies may be reopening, but the pandemic isn’t over.

As noted by CNBC: “WHO’s Director General Tedros Adhanom Ghebreyesus, a familiar face to millions of us now, said on Thursday on the eve of the two-year anniversary of Covid being declared a pandemic that ‘although reported cases and deaths are declining globally, and several countries have lifted restrictions, the pandemic is far from over.’”

China, for example, just ordered the lockdown of nine million residents in the northeastern city of Changchun amid a new spike in cases. According to the Associated Press, “China reported another 397 cases of local transmission nationwide on Friday, 98 of them in Jilin province that surrounds Changchun, a center of the country’s auto industry. In the entire province, cases have exceeded 1,100 since the latest outbreak first struck late last week.”

Of course, that’s not the news we really want to hear at the moment.

However, we bring it up because of its potential impact on vaccine stocks, like Pfizer (PFE) – which is starting to pivot higher from oversold conditions.

In addition, CEO Albert Bourla says Pfizer will soon submit data to U.S. regulators on a fourth dose of its COVID vaccine. As noted by TheFly.com, “Bourla said he spent Tuesday morning reviewing new data from various COVID vaccine studies, including one looking at the effects of a fourth dose of the currently available vaccine, as well as a new formulation that will protect against multiple coronavirus variants, the author notes.”

 It’s another example of how a crisis can lead to opportunity.

Markets

• The Dow is up 390 points to 33,434
• The S&P 500 is up about 58 points to 4,305.75
• The NASDAQ is up 230 points to 13,814
• Gold prices slipped about $30 to $1,966.06
• Bitcoin is up about 2.2% to $40,014.82
• Oil prices are up about 72 cents to $106.70
• The VIX is down 3.26 points to 29.19

Markets are attempting to push higher on hopes for a Russia-Ukraine cease-fire.

According to CNBC, “Russian President Vladimir Putin said that ‘certain positive shifts’ have occurred in the talks.”

Trading Tips

Pay close attention to the artificial intelligence boom.

With it, we could be looking at a potential $641.3 billion opportunity.

According to Verified Market Research, the Global Artificial Intelligence Market size was valued at $51.08 billion in 2020 and could hit $641.3 billion by 2028, growing at a CAGR of 36.1% from 2021 to 2028. AI could revolutionize every industry from consumer products and transportation to healthcare and manufacturing, as corporate America races to embrace machine learning, deep learning and other processes that allow computers to perform tasks that generally require human intelligence.

One of the stocks booming with AI is an AI application software company… Read more here.

Making Headlines 

• How the Ukraine war is lurching the globe toward a new food crisis
• China locks down city of 9 million amid new spike in cases
• Helmet worn by Amelia Earhart sells for $825,000 at auction
• The West Declared Economic War On Russia, And Now Russia Is Striking Back In A Major Way
• Italian Truckers Declare Force Majeure Over Gas Pains, Halt Deliveries Starting Monday

So much for hopes of a cease-fire.

As reported by CNBC “Talks between Russia and Ukraine have failed, with foreign ministers from both countries making no progress on a potential cease-fire agreement. The discussions came a day after Russian forces bombed a maternity hospital in Mariupol.”

With tensions rising further, investors are still investing heavily in gold, which is now back above $2,000. From here, the metal could even test $2,500, given the uncertainty.

Goldman Sachs for example says that’s possible.

In fact, according to Business Standard, “The last time that we saw all major demand drivers accelerate simultaneously was in 2010-2011 when gold rallied by almost 70 per cent. Given the material upward revision in investment and demand assumptions, we now upgrade our 3 /6 / 12-month gold targets from $1950/2050/2150 an ounce to $2300/2500/2500 per ounce,” wrote Mikhail Sprogis, Sabine Schels and Jeffrey Currie of Goldman Sachs in a recent note.”

With investors flocking back to the safe havens of gold, stocks like Barrick Gold (GOLD) and Newmont Corp. (NEM) could do well. Even gold ETFs could run, including:

The VanEck Gold Miners ETF (GDX)

With an expense ratio of 0.51%, the GDX ETF offers diversification with Newmont Corporation, Barrick Gold Corporation, Franco-Nevada Corporation, Kirkland Lake Gold, and Royal Gold Inc. to name a few. After running from $29 to $40, the ETF pulled back slightly. That weakness may be an opportunity.

Direxion Daily Gold Miners Index Bull 2s Shares (NUGT)

Some of NUGT’s top holdings include It has holdings in Newmont Corporation, Barrick Gold, Franco-Nevada, Royal Gold, and Kirkland Lake Gold, as well.

Markets

• The Dow is down 361 points to 32,904
• The S&P 500 is down 48 points to 4,227.25
• The NASDAQ is down about 208 points to 13,527.50
• Gold prices are up $14.54 to $2,005.01
• Bitcoin is down 6.3% to $39,279.20
• Oil prices are up $4.14 to $112.40
• The VIX is down 1.28 points to 33.85

Trading Tips

Over the last few months, Bitcoin was cut in half.

From a high of $68,978, it plummeted to a low of about $35,000.

However, after catching major support dating back to mid-2021, Bitcoin is showing strong signs of life. Helping, President Biden just announced an executive order on cryptocurrencies.

In fact, according to CNBC, “Biden’s executive order attempts to address the lack of a framework for the development of cryptocurrencies in the U.S., which critics say could leave the country’s industry behind the rest of the world.” The order also directs the U.S. government to explore a potential central bank digital currency.

In addition, according to NBC News, “Although a U.S. digital currency would not necessarily change much in terms of everyday experiences like buying goods and services, economists say it could transform central and commercial banking, as well as government sanctions, banking accessibility and taxes.”

So how do we profit from that?  Read more here.

Insider Buying: Caesars Entertainment (CZR)

On March 8, CEO Reeg Thomas bought 10,000 shares at an average price of $71.38 for $713,755. Director Michael Pegram also bought 13,000 shares for $895,526.

Helping, Loop Capital analysts just raised its CZR price target to $109 from $99, with a buy rating. As noted by TheFly.com, “The company could announce a Las Vegas Strip asset sale as soon as in the next three months, and a high valuation mark for the divestiture should serve as a positive catalyst for Caesars shares.”

Making Headlines 

• After Ukraine, Europe wonders who’s next Russian target
• Yet another 4-decade inflation high is expected for February
• Cyber firm: At least 6 US state governments hacked by China
• “Everyone’s Videos Are Gone??” – US TikTok Users Report Outages On Popular App
• What Advisors Are Telling Clients About the War in Ukraine

There’s a good deal of fear in the markets.

Perhaps too much.

Sure, there’s plenty to be pessimistic about.  Russia is still invading Ukraine.  Oil prices gushed above $130, with threats of $300 oil.  Gold is above $2,000.

But we’re starting to see what we always see in times of panic.  

Scared investors are crowding the short side of the market.  

We can see that in the Volatility Index, which spiked to 35 – the highest it’s been since January 2021.  We can also see that by watching put option activity.  For example, Goldman Sachs said about $1 trillion worth of put option contracts were exchanged in a single week in February.

When we see this happen, investors should consider buying the fear.

Just as Warren Buffett, Sir John Templeton, and Baron Rothschild would advise.

In 1939, Europe was just about decimated. 

So, Templeton bought every European stock trading below $1.00 a share and made a fortune. In fact, he bought shares in 104 companies for about $10,400. He would make a fortune.

He taught us to buy excessive pessimism.

Warren Buffett advises that a “climate of fear is your friend when investing; a euphoric world is your enemy.” And of course, we all remember his advice to “be fearful when others are greedy and greedy when others are fearful.” 

Baron Rothschild once told investors, “The time to buy is when there’s blood in the streets, even if the blood is your own.” He knew that very well, considering he made a small fortune buying the panic that followed the Battle of Waterloo against Napoleon.  

In short, investors may be terrified.

But historically, that level of fear can lead to big returns.

That doesn’t mean you should throw your life savings into the market at the moment.  But you may want to consider dipping a toe in some of the markets’ most oversold gems, like Apple, Microsoft, Advanced Micro Devices, etc.

Markets

• The Dow is up about 480 points to 33,080
• The S&P 500 is up about 65 point to 4,234.50
• The NASDAQ is up about 261 points to 13,528.25
• Gold prices are down $31.56 to $2,021.04
• Bitcoin is up 9% to $42,352.89
• Oil prices are down $3.76 to $119.90
• The VIX is down 3.61 points to 32.84

Trading Tips

We’ve never paid this much for gasoline.

At the moment, the average pump price is up to $4.14, according to the Oil Price Information Service. That shattered the previous record high of $4.11 set back in 2008.

Unfortunately, it may only get worse, with Russia saying oil could hit $300.

That’s according to a recent Reuters report that says, “Western countries could face oil prices of over $300 per barrel and the possible closure of the main Russia-Germany gas pipeline if governments follow through on threats to cut energy supplies from Russia.”

As a result of higher prices, a number of high-dividend paying stocks have become far more attractive to income investors.  Read more.

Insider Buying: McDonald’s (MCD)

After falling from about $260 to $222.80, McDonald’s is wildly oversold. Even RSI, MACD, and Williams’ %R are over-extended into “overkill” territory.  That may be part of the reason MCD director Catherine Engelbert recently bought 1,000 shares for $244,180 in late February.  The last time she bought shares was in February 2020, when she paid $192,130 for 1,000 shares.

Making Headlines 

• Concern Rising That Putin Could Use Nuclear Weapons
• IEA says energy-related CO2 emissions hit their highest level in history in 2021
• Bitcoin Surges as White House Unveils Crypto Executive Order
• War Will Cause “Hell On Earth” For Global Food Prices
• Mainstream Hedge Funds Pour Billions of Dollars Into Crypto

This could get bad.  Real bad.

So bad, you may want to bike, walk, teleport, or flap your arms and hope to take flight bad.

We’ve never paid this much for gasoline.

At the moment, the average pump price is up to $4.14, according to the Oil Price Information Service.  That shattered the previous record high of $4.11 set back in 2008.

Unfortunately, it may only get worse, with Russia saying oil could hit $300.

That’s according to a recent Reuters report that says, “Western countries could face oil prices of over $300 per barrel and the possible closure of the main Russia-Germany gas pipeline if governments follow through on threats to cut energy supplies from Russia.”

Not helping, the U.S. is getting set to ban Russian oil, natural gas, and coal without European participation as early as today. “Given Russia’s key role in global energy supply, the global economy could soon be faced with one of the largest energy supply shocks ever,” Goldman Sachs said, as quoted by CNBC.

While the news is likely to damage the economy, and most stocks, it’s thrusting green energy stocks into the spotlight.  Solar names like First Solar and Sunrun are soaring.  Fuel cell stocks, like Bloom Energy are surging.  And oil stocks, like Exxon and Chevron should gush higher.

Markets

• The Dow is up about 64 points to 32,846
• The S&P 500 is up about eight points to 4,206.15
• The NASDAQ is down about 18 points to 13,303
• Gold prices are up another $13.96 to $2,012.69
• Bitcoin is down slightly to $38,702.15
• Oil prices are up another $2.40 to $122.30
• The VIX is up another 3.46 points to 35.44

Trading Tips

Hydrogen stocks are on the move.

All after Goldman Sachs said hydrogen generation could be a $1 trillion per year market.

“If we want to go to net-zero we can’t do it just through renewable power,” Michele DellaVigna, the bank’s commodity equity business unit leader for the EMEA region, told CNBC. “We need something that takes today’s role of natural gas, especially to manage seasonality and intermittency, and that is hydrogen.”

It’s why investors may want to consider taking a position in stocks.  Read more here. 

Insider Buying: Dillard’s Inc. (DDS)

Keep an eye on DDS.

Dillard’s director Warren Stephens just paid out $4.6 million for 20,000 shares in late February 2022.  He paid an average price of $230.51 per share.

In addition, according to TheFly.com, the company reported Q4 revenue of $2.11 billion, as compared to expectations for $2.05 billion.  

CEO William Dillard, II stated, “We ended FY21 on a very strong note with a fourth consecutive record quarter. Our fiscal year net income of $41.88 per share exceeds any annual performance in our history. Importantly, during the year, we returned $866M to our shareholders through dividends and share buyback, while still ending the year with $717M in cash.”

Making Headlines 

• Russia warns of $300 oil, threatens to cut off European gas if West bans energy imports
• Shoppers Scramble for Staples as the Food Fallout Spreads Around the World
• Goldman Sachs pushes up its gold price forecasts
• Nickel Halted After Historic 250% Surge Costing Chinese Tycoon Billions In Margin Losses
• Canada Says Its Oil Could Replace US Imports of Russian Crude