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Apr 29, 2022

Good morning!

A quick sidebar … it’s “AMA (Ask Me Anything) Friday.”

As usual, you’ve sent in some fantastic questions including:

What to expect when Palantir reports?
Which ETFs align best with the One Bar Ahead™ approach?
Are municipal bonds still a good bet as rates rise?
What will it take for the markets to bottom and how will I know?
Is NVDA a buy?

Keep an eye on your email if you’re an OBA subscriber. If not and you’d like to be in the know and have your questions answered, please consider signing up. (Click here).

I really hope you do. A lot of investors are flailing right now and that simply doesn’t have to happen. There IS a path through the madness but it’s critical you take action now!

Speaking of which …

Here’s today’s playbook.

1 – AAPL is a hero, AMZN is a zero

I was very direct when the fantastic Charles Payne asked my colleague Lou Basenese and I about both companies yesterday shortly before they reported. Lou, by the way, is as quick-witted as ever as you’ll see. (Watch)

What next?Let’s put it this way … you don’t get off a winning horse in the middle of the race. I hope I’m smart enough to buy more Apple but still have no plans to touch Amazon.

2 – Why do stocks drop after great earnings?

It’s a pattern we’ve seen a lot recently … a company like Apple reports great earnings and drops. Same with Chevron despite reporting that profits have quadrupled.

There’s a very simple answer.

Wall Street knows that most individual retail investors suffer from FOMO so they run prices up higher into earnings knowing that most people will be betting on an increase. Then take profits which, of course, scares the weak money out almost immediately and drives prices lower.

Start thinking like the big money if you want to compete.

Use strategies that take away their advantage.

I can help with both. (Learn more).

3 – Disillusioned is an understatement

This article is just too good to pass up sharing. I wish I’d written it and, knowing how I feel about Facebook/Meta, probably should have. (Read)

Puts, puts and more puts. Or at least steer clear. The big money is undoubtedly manipulating prices in an attempt to preserve the illusion.

Here’s how disgraced Archegos fund boss Bill Hwang did it, for example. Pay attention … he controlled more than 50% of the shares in some companies and 35-50% of the daily trading volume in others. (Read)

4 – Awesome for the income starved

I had a conversation with an earnest income seeker busy telling me about all the reasons why he wasn’t buying and my son jumped in, “WTFruitloops are you waiting for?”

I agree.

Corrections don’t last nearly as long as bull markets. Failing to buy now while prices are low is a huge mistake, especially when it comes to a stock like JPM, my favourite bank bar none.

The yield is a juicy 3.24% which at today’s prices works out to roughly $1 a share per quarter at the moment. Own 100 shares, bank $100 bucks this quarter.

Think hard … dividends accounted for 70% of the S&P 500’s total return during the high-inflation 1970s. Roughly 65% during the 1940s.

WTFruitloops indeed!

5 – If only this weren’t in LA

Built in 1926 and designed by Lloyd Wright, son of Frank Lloyd Wright, the Derby House is the penultimate in cool. At least for me anyway. (Take a peek)

Do you have a favourite and, if so, where is it?