Midas Letter

This is the first time since January we are seeing this phenomenon happening in the stock market!

Technology stocks, as we all know, have been leading the way since the onset of COVID-19. Tech has become the flight to safety and the “utilities” as people work and stay at home.

This is the first week that consumer discretionary stocks have risen back above technology stocks from a relative strength perspective. We are seeing a narrowing in momentum and an increase in the RSI oscillator, while prices move lower on the NASDAQ-100 (INDEXNASDAQ:NDX). All these technical indicators signal a change in tides.

As the S&P 500 Index (INDEXSP:.INX) hit an all time high in the week, gold dropped $100. This might scare some people away from investing in the precious metal. However, as we indicated above, the stock market could be in for a turmoil time in the near-future. For example, even if we find a vaccine for the Coronavirus, there will be lasting damage to the world’s economy. Therefore, it is our belief that we will see another strong gold rise over the next couple of years.

Watch the full interview for 3 gold miner stocks we are following as the tech sector cools and the gold sector rises.

Original article: Top 3 Gold Stocks for August©2020 Midas Letter. All Rights Reserved.

Who would have thought that with the stock market lows of late-March, we would be in another position to test record highs so soon?

The S&P 500 Index (INDEXSP:.INX), having returned 50% since then, is just below the record. Any price move above 3,386.20 would break back into that all-time high territory.

The last time the index was in this position was on February 19th, 2020. Globally, we have been plagued with negative economic news since then: with Coronavirus, rising geopolitical tensions, federal reserve policies, etc.

We had a temporary money outflow from NASDAQ-100 (INDEXNASDAQ:NDX) stocks (the largest tech names) into value stocks (ex. banks). But, here we are again testing that February 19th price level.

Technology companies have become the new flight-to-safety when markets selloff. So, for those traders looking to invest into value stocks because they seem cheap, relatively speaking, if markets dip, those will be the same stocks that will be hit the hardest. We know that doesn’t make 100% sense from a fundamental perspective, but you just can’t bet against tech in these unprecedented times.

Watch the full interview for strategies to buy the technology stocks that have already been on a tear. 

Original article: Will the S&P Break it’s All-Time High?©2020 Midas Letter. All Rights Reserved.

Russian President Vladimir Putin has declared that he has registered an effective coronavirus vaccine!

Allegedly, one of his daughters has already received it and production is about to get underway. Whether you believe the effectiveness of the vaccine or not, this does pose important questions on how the stock market will react to such positive news.

The big hope is that the world will go back to “normal”. The question then is not if, but when a successful vaccine will materialize, and whether you can make money while we wait for that to happen.

We have seen a massive bull market on the back on mostly negative news: bad economic data, COVID cases increasing, global geopolitical tensions, etc… So it will be interesting to see the price action if there is actually some good news. Will this send the stock market into all-time highs or is the market already overly extended?

Watch the full interview to learn to profit from COVID vaccine news and the hot sectors to invest in right now.

Original article: How Russian COVID Vaccine will Influence the Stock Market©2020 Midas Letter. All Rights Reserved.

This is a new era in stock market investing.

What worked historically in Warren Buffett’s day, may not be the best strategy in today’s market. The billionaire investor sold airlines at the worst possible time, has little tech names in his portfolio and holds onto bank stocks such as Wells Fargo & Co (NYSE:WFC)…

Looking at all the investing strategies a trader could use and comparing them using data for the last 30 years, shows that Buffett’s style of “value” investing didn’t even place in the top 20 strategies for regular traders.

With enough volatility and price cap in the market; day traders and swing traders are now moving markets with momentum.

So don’t have FOMO from these crazy high prices within markets today, and watch the full interview to find out the secret behind winning in markets consistently.

Original article: Has Warren Buffett Lost his Touch?©2020 Midas Letter. All Rights Reserved.

Gold’s spot price has hit a new record high. $2,059.09 at the time of writing this.

Coronavirus, economic uncertainty, a weakening USD and the multiplication effect of central bank monetary supply all have a hand in boosting the precious metal. So, where else does the price have to go? Other than up, up and away…

The cool thing about the price of gold increasing is the many investing/trading avenues you can go down: There is the commodity itself, futures, junior miners, etf’s, related precious metals (i.e. silver), etc.

If you take the all-time high set back in 2011 and then take the ratio between gold and silver. Silver should be looking at a price target of around $46. Something to keep in mind.

Gold is up more than 30% just this year. So, the question is can it go much higher?

Bank of America Corp (NYSE:BAC) have put a price target of $3,000 per ounce of gold. Goldman Sachs Group Inc (NYSE:GS) think prices could rise as high as $2,300…

Watch the full interview to see whether gold could go a lot higher than what analysts are saying… Plus with bitcoin marching along to USD$12,000, is the cryptocurrency worth another look?

Original article: Will Gold Hit $5,000 Before 2030? Plus Bitcoin Correlation©2020 Midas Letter. All Rights Reserved.

The story in markets this week is the same story it’s been since the bottom in March… Autopilot to the upside. That’s not without certain catalysts that would have normally applied downwards pressure – with COVID cases rising and the U.S. GDP data missing targets. All indicators pointing to a correction, eventually. For instance, almost 50% of stocks in the S&P 500 are trading below their 200-Day Moving Average – showing bearish signs as opposed to the overall bull market we find ourselves in.

So, what lessons do we take from markets this week and can we learn anything from Warren Buffet’s value investing in stocks such as Bank of America Corp (NYSE:BAC)?

It doesn’t matter what your normal investing strategy is… There will always be times when that strategy is in-favour and out-of-favour. This doesn’t mean you necessarily have to change your investment thesis. Buffett knows what works for him and he will certainly stay in his lane.

Markets are momentum driven for the time being… But there are lots of stock that have been beaten down that could one day take off again and go to the moon (think airliners, cruises, hospitality stocks). Those stocks are down 5x what they were trading this year. So, even if they were to bounce back a little, this could be enough for investors to make a killing…

So here’s what we are doing in markets this week and moving forward:

Short-term: Either maintain call options in the most liquid and largest companies, as a drop-off isn’t expected imminently or diversify out of individual stocks and into ETF’s. This way you get the upside from upward momentum in markets but removes the risk from any bad earnings reports ahead.

Medium-term: Based on the last 50 years, when gold has rallied, silver has superseded its precious metal big brother. Therefore, silver and silver miner ETF’s are a decent idea.

Long-term: There are so many great stocks out there that are waiting to explode back to their all-time highs as times return to “normal”.

Watch the full interview to see which specific stocks we are looking at trading in the short, medium, and long-term for the most lucrative gains.

Original article: Lessons from Warren Buffett’s Latest Investment©2020 Midas Letter. All Rights Reserved.

Alphabet Inc (NASDAQ:GOOGL) (NASDAQ:GOOG), Apple Inc.(NASDAQ:AAPL), Facebook, Inc.(NASDAQ:FB) and Amazon.com, Inc. (NASDAQ:AMZN) all report earnings after market close today.

Analyst consensus is that Amazon is expected to get a massive boost in revenue due to the Coronavirus, while Apple has seen higher demand for the new iPhone in Asia.

We don’t expect any big surprises from the “big-4” tech earnings reports.

So, if you are already invested into these companies, keep enjoying the punch.

But if you are not, perhaps you may be a little too late to the party.

Watch the whole interview to see how we are going to be trading the tech earnings reports.

Original article: Are You Too Late to the Tech Investment Party?©2020 Midas Letter. All Rights Reserved.

Is there going to be an everlasting, fundamental shift as the post-pandemic world becomes the new “normal”?

For example, we have a pretty good idea that Amazon.com, Inc. (NASDAQ:AMZN) is going to continue to be one of the world’s behemoth companies delivering all items consumers may need.

But, is the movie theatre business a business that will continue the same way it did before 2020?

With that in mind, what will now drive sentiment in trading in the short-term and beyond?

Watch the full interview for the themes to consider moving forward taking into account the massive printing of money ($11 trillion in 4 months), tech stocks being bought at a premium for their viability into the future, gold hitting new highs, and company earnings, FOMC & GDP data being reported this week.

Notable earnings this week is shown below (courtesy of Earnings Whispers): Facebook, Inc. (NASDAQ:FB), Boeing Co (NYSE:BA), Amazon.com, Inc. (NASDAQ:AMZN), Apple Inc. (NASDAQ:AAPL), Alphabet Inc (NASDAQ:GOOGL) (NASDAQ:GOOG), Caterpillar Inc. (NYSE:CAT)

Original article: How to Navigate Post-Pandemic Stock Market©2020 Midas Letter. All Rights Reserved.

There’s a big reversal in momentum happening across U.S. equities and especially the NASDAQ (INDEXNASDAQ:IXIC).

We know markets have posted an unprecedented recovery in the last couple of months. But how long could that trend continue given the overbought reality, the current coronavirus pandemic data and geopolitical tensions?

There is a massive divergence in “smart money” and Robinhood investing. Institutions, hedge funds and central banks investment in equities is at a nine-year low despite the almost V-shaped recovery in markets. This separation between retail and institutional investing, historically, has been a massive indicator that the tides are shifting.

Another sign this reversal is starting to take place is the sell-off in both Microsoft Corporation (NASDAQ:MSFT) and Tesla Inc (NASDAQ:TSLA) despite their strong earnings reports.

Expectations for some stocks are very high – especially the technology names. So after this round of earnings, we might start to get a better understanding of true value.

Watch the full interview to see the momentum trades you should be paying attention to as markets rollover.

Original article: What to Invest in as Stock Market Tide Changes©2020 Midas Letter. All Rights Reserved.

We are starting to see some bubbles being burst in the top stocks traded on the Robinhood platform since the Coronavirus took hold.

…So long Nikola Corporation (NASDAQ:NKLA)…down to pre-IPO levels in under 2 months.

Airliners also haven’t increased back to “normal” levels after their short-term rally.

What is the lesson or take away from all this commotion in markets?  If you want to make consistent profits: you have to follow the momentum.

The movement present in today’s market suggests a rotation out of value names and inflows into technology and NASDAQ-100 (INDEXNASDAQ:NDX).

Watch the full interview to find out the hot sectors moving over 5% daily. We’ll also teach you what to look out for.

Original article: Top Stocks to Get in and Out of©2020 Midas Letter. All Rights Reserved.