Do you own enough shares?

Good morning!

The markets are attempting to mount a third consecutive rally day into the holidays. Not to be a grinch, but something doesn’t feel right. Don’t get me wrong, I’ll take the rally – and I am sure you will too.

My guts – and 40 years of experience in global markets makes me think the big money starts to “fade” it into the close. Logical … there are three days of profits up for grabs and short-term traders may not want to leave ‘em on the table over the holidays with the markets closed tomorrow.

A few well-placed S&P 500 putskies could work well!

Here’s my playbook.

1 – Musk’s “done” selling and predictably Tesla’s up

 I talk repeatedly to the point where I am certain that I sound like a broken record at times … the path forward is not selling high like many people think.

The real secret is buying low.

Tesla shares tacked on 1% in premarket now that Musk’s done enough selling to pay his tax bill. I hope you’ve taken advantage of the pullback. My target is still $2,500 within the next 24-36 months… more than a double if you’ve had your coffee! (Read)

2 – JD.com pays the piper

JD.com shares tanked nearly 8% in pre-market action after news that China’s social media company, Tencent, would be dumping 457 million shares in a move that takes the latter’s holding in the former from 17% to a measly 3%. (Read)

Technically speaking, it’s going to be a $16.4 billion dividend but don’t let that fool you. This is punishment – pure and simple – for capitalist behaviour Beijing deems to be not in the peoples’ interest.

Continue to steer clear of Chinese stocks unless you’re okay with the risk that you could get wiped out overnight if Beijing gets a bug in its britches. Or buy Apple which, not coincidentally, struck a deal with Beijing back in 2016.(Read)

3 – Where’s the beef, or at least the testing kits?

President Biden has promised 500 million rapid Covid test kits that will be sent for free starting in January using information gathered via a yet to be built government website. I don’t think he’s got the goods.

Frankly, I hope I’m wrong but keep in mind … these are the same people who turned what used to be the world’s best passenger rail system into a 3rd tier service, Amtrak. This is the same bunch who has allowed the USPS to crumble, spent $10+ billion on plutonium nobody wanted to buy. Solyndra … and more.

I’m going to stick with Pfizer for the simple reason that the government has authorized Pfizer’s at home pill, Paxlovin for home use. (Read)

4 – Not to bag on Citi again, but seriously??!!

Yesterday I told you about Citi’s latest call – Apple at $200 – months after everybody and his mother’s uncle was already there and after the stock had already put in a 52-week high of $182.13. It was nothing more than a “me too” move.

Today Citi’s Jason Bazinet is out with what is being trumpeted in the mainstream media as another groundbreaking research call slapping a $38 price target on Peloton, down from the previous target of $55 … but it’s already trading at $37.78. As recently as October, he called it a strong buy with a target of $105 and 43% upside.