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Don’t be surprised if you see some profit taking today

Jun 02, 2023

Good morning! 👋

As I suggested it would, the debt ceiling passed—and, not surprisingly, the major averages are all green ahead of the open.

Here’s my playbook.

Don’t be surprised if you see some profit taking

Many investors will breathe a sigh of relief that the debt ceiling has been avoided.

Legions of super-sharp, highly leveraged traders, on the other hand, may go on the attack, perhaps by the time you read this. My guess is that they’ll use the “hot” jobs reading as an excuse.

Why?

Simple.

There’s a lot of green on the board, so do not be surprised if you see some short-term profit taking.

And if that bothers you...

REMEMBER: The strong feed when the meek retreat!

Use the volatility to your advantage. If you like Selling Cash-Secured Puts, the premiums will be juicier than normal. If there’s a dip, you can use that to accumulate a few extra shares of companies you may have missed or that you’d like to own more of.

Next up, the Fed

I don’t know about you, but I’d love to see a few days of normal behaviour, if such a thing exists anymore. The markets will very quickly refocus on the Fed now that the debt ceiling has been averted.

Don’t lose sight of the prize!

The world’s best companies continue to put up great numbers, and it won’t be long before the markets settle down... at least for a while, anyway.

Millions of investors who went to the sidelines will be caught between a rock and a hard place because now they’ve gotta play catch-up when companies like NVDA and Palantir are already up 267% and 146% off 52-week lows.

Hopefully, you’re “in to win” like I am.

Speaking of which...

The June issue drops today

U-rah!

The June issue of One Bar Ahead® is only a few hours away... and with it, a new recommendation in an industry not many investors know about, but which is critical to our future. I’m also reviewing one of my favourite dividend stocks. There’s a detailed portfolio review, the latest Master Market Indicator® charts, and more.

I’d love to have you on board if you’re not already! People tell me that it’s better than anything they get from their brokers, and some of the best research available today. Obviously, you’ll be the judge of that, though. Upgrade to Paid

$TGT: Buy, sell, or hold?

Target has now hit 3-year lows as the Pride backlash continues and many investors are wondering “Do I buy, sell, or hold?” (Read)

There’s a fourth choice.

Move on.

The way I see it, the backlash is likely to continue, crime is rising, and consumers continue to pull back on spending. Pride is the least of their problems. Macy’s and Dollar General are also suspect. (Read)

Oh, and did I mention dividend risk?

That’s there, too.

Putskies or a few bearish spreads may be the play here.

To a point I make loudly and consistently...

Buy the best, ignore the rest. Anything else is a risk you don’t want or need in your portfolio.

$F CEO Jim Farley says what many are thinking

It was just maybe the most cringeworthy video soundbite I’ve seen in a while. During a recent interview, Ford CEO Jim Farley said point blank, “EVs aren’t for everyone.” (Watch)

What he said next, though, really nails it.

What’s more, it reinforces my contention that the technology isn’t ready for prime time (and I’m paraphrasing here)… “If you own a 5th-wheeler and are towing it in Wyoming, it’s probably not for you.”

Newsflash to the car-makers: Make products that are READY for prime time, and customers will come running. Until then, we still need ICE and—yep—plenty of dinosaur juice.

Invest accordingly.