You've got a choice to make. You can continue doing what you're doing - hoping to rebound from this recent market plunge… or take guidance from one of the best minds in trading and investing. While the S&P 500 lost 10% to start the year - and the Magnificent 7 sliding 20% - Blake Young is UP on the year. Imagine how good it feels to know you've avoided this trade crisis? Well… this is your chance to take control of your money, follow the global money flows… and survive and thrive. |
For an encore of yesterday's event between Blake and me… go here now. |
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Dear Fellow Trader: |
The market is closed today… |
I promised my wife that I wouldn't stare at screens. |
So, today will be a nice day for the zoo with my daughter and an opportunity to reset. |
This market has been wild. |
Well, I want to highlight a few things for you as you approach next week… |
No. 1 - Not A Lot of Breakout Stocks |
You know the drill… Looking at stocks that are up more than 5% in a week on the S&P 500… up on the month… meet our Beta figures… and are above their 20-day… |
Just four… This isn't a sign of strong momentum (let alone any momentum)… |
Ticker | Company | P/E | Price | Change | ALGN | Align Technology | 30.48 | 171.41 | 2.53% | FIS | Fidelity National | 50.29 | 74.58 | 8.65% | NFLX | Netflix Inc | 49.07 | 973.03 | 1.19% | UBER | Uber Technologies | 16.42 | 75.24 | 2.98% |
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We've talked about Netflix all week (and its partner in Palantir). |
On the flip side, here are a few names that are breaking down… |
Ticker | Company | P/E | Price | DVA | DaVita | 13.03 | 140.03 | META | Meta Platforms | 20.96 | 501.48 | SMCI | Super Micro Computer | 13.75 | 31.5 | TXN | Texas Instruments | 28.56 | 148.44 | WSM | Williams-Sonoma | 15.44 | 139.21 |
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What I find wild is that the stocks that are breaking down all have reasonable P/E ratios compared to their breakout counterparts. |
Again, I argue that P/E is a terrible metric when comparing stocks… and to use EV-EBIT instead (that's enterprise value to earnings before interest and tax). |
No. 2: Let's Look At the Screens |
While the markets are chaotic, have you noticed the two stocks from the S&P 500 that hit all-time highs this week? Those were PM International (PM) - aka Philip Morris - and Atmos Energy (ATO), a regulated utility. |
While the world is on fire, those two stocks are on all-time runs. It's important to remember that there is always a bull market somewhere. |
No. 3: Are You Ready for Next Week? |
It was a wild week on Wall Street again. And yesterday, $3 trillion in contracts expired, setting up for what could be a major squeeze play next week. Trump is already talking about trying to strike a deal with China… money is moving QUICKLY into energy and materials as the dollar fades. |
But if you listened to Blake Young, you'd already know this… |
Yesterday, I met with Blake to discuss where money's flowing… and if you haven't seen it yet… make this your morning show. We might not be live this morning, but you can watch a special encore of our session from yesterday. |
If you missed it… Click this link. |
Your retirement and financial future depend on it… |
No. 4: Who's Buying? |
I talked about Bill Ackman and his activist campaign against Hertz (HTZ) yesterday. |
An activist investor is an individual or institutional investor who acquires significant equity stakes in publicly traded companies to influence management and corporate policies. |
Their primary aim is to improve company performance, drive strategic changes, unlock shareholder value, or address governance issues. |
Activists may push for board seats, propose operational changes, advocate mergers or divestitures, or campaign for executive management replacements. |
When activists buy stock, they file a Schedule 13D with the government. This typically happens when the investor acquires more than 5% of a company's shares and intends to influence management decisions. |
The good news? We track 13Ds… |
Here's a filing that caught my attention yesterday. |
SABA Capital, run by Boaz Weinstein, has been snapping up closed-end funds for the last two years. Closed-end funds are like mutual funds, but they have a set number of shares… and they can dislodge from their net asset value (NAV). |
Here's what Weinstein is buying… |
The Tortoise Sustainable and Social Impact Term Fund (TEAF). |
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How sustainable is it? Well, it's just a big list of midstream pipeline companies, paying a gross yield of 9.7% and trading at a 15% discount on its net asset value. |
 | Cefconnect.com |
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This is a loaded portfolio… and given its recent pullback, Weinstein loves it… |
Me too… This could be a great way to add yield, upside, and conviction… All in a sector that you know I love. Remember… there's always money in the midstream. |
We'll be back on Monday at 8:45 ET. |
Be sure to watch our recap from yesterday, right here. |
Stay positive, |
Garrett Baldwin |
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