Midas Letter

We all know Tesla Inc (NASDAQ:TSLA) to be Elon Musk’s innovative electric vehicle company responsible for a large consumer shift away from gas guzzling automobiles. Although this is very true and represented by the company’s meteoric stock valuation (over $390 Billion) in the last couple of years, there is plenty more to the story. In […]

Markets are showing a continued retracement across almost all asset classes and have been throughout September. So, is now the time to lower your investment exposure to the stock market and hold more cash for future opportunities? We are seeing the VIX (INDEXCBOE:VIX) volatility index remain at a price level 3 times the riskiness of just last […]

Whether the COVID-19 pandemic is ramping up again or there is a vaccine around the corner… The economy has seen a lasting impact that has changed the workforce forever. The “work-from-home” economy will now be ingrained into how businesses are operated worldwide. Overnight, working from home went from being a luxury, only a privileged few […]

There are many styles of investing in which people can make money. But, the debate over which investing method is best is a highly disputed one. Those strategies tend to exist within 2 categories: there are the fundamental investors; whose philosophies are based on the underlying intrinsic value of a particular company and sector (Warren […]

As an active trader and market participant, you’ve definitely taken notice of how the markets have been behaving over the last couple of weeks… the bull markets this summer have taken slight pause and you maybe stressing that it might be the end of the story… The COVID virus has got worse again. Countries all […]

Options trading is foreign to lots of investors. A derivative to standard equity stock trading that allows for exponential gains compared to usual stock price movement… but a trading approach which can also result in losing all of your investment.

So how do you tackle these tricky investment vehicles and find yourself “in-the-money”?

Well today, you’re in luck because we are joined by an expert in the options trading game. An ex-hedge fund trader who specializes in making large amounts of money in short periods of time.

He goes through trades he just initiated, his preferred investment platform and how he scans the market for the next best opportunity to double his money.

Watch the full interview for an options trading master class and what sectors we think are hot right now.

Original article: Live Trading with Options Expert©2020 Midas Letter. All Rights Reserved.

Markets are up slightly today after a decline from its meteoric rise over summer 2020. There have been selloffs in the high-flying technology stocks, with some big names trading below their 50-day moving average for the first time in a while. But, a consolidation is always healthy after such a large move in stocks. So, a question you may be asking is: could this be the start of another big rise in the stock market and what should we look for this week as traders?

You’ve heard us talking about this quite a bit… The elephant in the room when it comes to markets and especially liquidity in the markets… The fed. The single largest driver in prices across all asset classes.

The fed has set up an expectation that they will be dovish (keep interest rates low) forever. There is also the expectation they will always be around to prop up all assets, continue to purchase large amounts of corporate debt and even buy equity etf’s… Investors want to have the guarantee they will be there to support the stock market and economy forever… But can that be true?

On Wednesday, Jerome Powell and the Fed provide their latest interest rate decision at the FOMC. The market is seeking to see details of how the fed will operationalize their average inflation tarted approach and provide some additional forward guidance. Will they be specific with defining time periods or will those targets be outcome based?

There could be a chance of disappointment… Traders want more clarity so transparency from the fed will be the determining factor in how markets will react after the meeting.

Watch the full interview to see trading strategies for the fed FOMC meeting, the correct risk-to-reward ratios to use in uncertain times, and what earnings reports to look forward to this week.

Original article: Is the Stock Market Off to the Races Again?©2020 Midas Letter. All Rights Reserved.

With U.S. presidential elections on the horizon, there are more variables to consider within the stock market…

2020 has been a very volatile year as it is – with lots of factors and catalysts to digest in order to get an edge on markets… COVID-19, trade tensions and now the future of politics in the United States.

Historically, the months preceding an election are fairly quiet as hedge funds and institutional traders hold their cards close to their chest until they have an idea of what to expect.

In a simplified form, here is what to expect depending on who wins the U.S. presidency:

If Trump retains: Large-cap tech stocks to rise. Russell 2000 Index (INDEXRUSSELL:RUT) stocks and companies with relationships with China to cool.

If U.S. is Ridin’ with Biden: Cannabis stocks, renewable energy stocks, and Russell 2000 Index stocks to rise.

Watch the full interview to see the stocks and ETFs we are trading in the run up to the election.

Original article: Trump vs Biden: How to Trade the Election©2020 Midas Letter. All Rights Reserved.

Does the recent market correction have you worrying as an investor/trader?

Is it time to lock in your profits and run for the hills?

What stocks are more or less likely to combat the market pullback and in fact still have lots of upside even when overall markets are declining?

If you have any of these questions, perhaps this video can help to guide you through this uncertain time.

Like in physics, usually what goes up has to come down (to a point). We have had an unprecedented run up in markets this latest fiscal quarter and so a temporary breather is not something to be overly fearful about. In fact, it is needed for there to be a healthy market place. The decline in price could even act as a new floor for stock prices to then rebound even higher…

We are looking for the undervalued stocks so that we can profit the most from this drop.

Watch the full interview to see the potential hottest sectors and stocks to look for to enjoy this eventual rise.

Original article: Cheap Stocks to Buy as Markets Struggle©2020 Midas Letter. All Rights Reserved.

2020 has been filled with surprises and uncertainty… And is likely to continue as we approach the November U.S. presidential elections.

It doesn’t matter where your political alignments or expectations lie, we are only interested in how an event changes/or does not change our investment strategies and where we see potential value in the stock market.

Historically there are certain stock market indicators which can give hints into who has best chances of winning elections… There are strategies that can be adopted if a particular party is expected to win over another…

But keeping with how this year has gone so far, there are maybe more questions that answers…

Watch the full interview for a helpful guide to navigate these tricky waters and how we are making money in these eventful times.

Original article: How Presidential Election will Affect the Stock Market©2020 Midas Letter. All Rights Reserved.