Posted June 19, 2020
By Alan Knuckman
Buy, Buy, Buy!
You might think its early, but Im already hard at working prepping for Independence Day festivities on Lake Superior.
I have to get ready for a crowd of family and friends at my lake compound. As always, no one goes hungry on my watch!
As the grill master, Im not content to serve just burgers and brats. In fact, Ive already spent $600 at the meat wholesaler to get ready for the Fourth. It all comes back to commodities! This time is no different. The meat selection at the local grocery stores is poor right now due to supply chain disruptions related to the virus shutdowns. So I went directly to the source. The lower quality and higher cost of inferior meat made me mad enough to take things into my own hands
Steak, anyone?I just spent half a day butchering and trimming boxed beef cuts of hanging tenders and outside skirt steak. Then theres the 20-pound ribeye (pictured above), out of which Im hand-carving my own steaks. Trust me, no one at my cookout will be asking Wheres the beef?As youve probably already guessed, I take my meat very seriously and I enjoy every minute of it! Most consumers have totally forgotten about the ranch-to-table process since the grocery stores now do the dirty work. But I highly recommend getting to know your food a little better!But Im no finished just yet. Next, Im getting some seaweed shipped up north for the beach shrimp and clam bake. I don't think I can use stuff from the Chicago shoresKeep it In the Money,Alan Knuckman
P.S. The CBOE trading floor reopened Monday, but with very strict admission policies in place. No space for me and my TV commentary. Hopefully we will be back in August!
Chart of the Day: What can stop this market?
Buyers just wont quit! In what has been a moderately choppy week for stocks, eager traders continue to pound the buy button.
In fact, I counted more than 60 optionable stocks that posted new all-time highs Thursday afternoon. Remember, weve been talking about how traders were freaking out as some volatility crept back into the picture over the past couple of weeks.
But they seem to be settling in as we approach the weekend, scooping up biotech stocks, China ADRs, and, of course, red-hot software and mega-cap tech names. Thats right were seeing the big tech stocks outperform again. The more things change, the more they stay the same
Just look at growing e-commerce superstar Shopify Inc. (NYSE:SHOP):
SHOP wasted no time breaking out this week, capping off a five-day win streak with a 5% rally and new all-time highs. Its now above $850. To put this in perspective, this stock was trading under $350 per share back during the worst days of the March coronavirus meltdown.
If youre looking for strength in this market, you cant go wrong with the tech sector
Trading Tip of the Day
Dont outsmart yourself!
Throughout this week, Ive noticed another influx of analyst upgrades. The so-called professionals are out with countless new company reports, raising price targets and predicting more gains ahead for some of Wall Streets strongest performers.
The only trouble is these were the same folks who were downgrading companies left and right just a couple of months ago. If you were following the underweight, equal weight, and overweight guidance, your portfolio has probably sunk underwater.
Trash the analyst reports and ratings. Most of them are nothing but contrarian indicators (if not totally useless for trading purposes). More information isnt the answer better information is what you should seek out when performing your market research.
-- Greg Guenthner