Midas Letter

Wealthpress Head Trader Roger Scott joined Midas Letter to analyze this weeks U.S. GDP data and earnings reported by the FAANG stocks, specifically Facebook, Inc. (NASDAQ:FB), Amazon.com, Inc. (NASDAQ:AMZN), Apple Inc. (NASDAQ:AAPL), Netflix Inc (NASDAQ:NFLX), Alphabet Inc (Google) (NASDAQ:GOOG) (NASDAQ:GOOGL) as well as Microsoft Corporation (NASDAQ:MSFT).

Roger believes the GDP data and jobless claims has already been priced into markets as investors knew of the havoc the Coronavirus has reaped on the economy. What the world did not know 100% is how the major companies would be effected financially, and to what degree.

The S&P 500 Index (INDEXSP:.INX) as well as the other major North American indices traded lower after earnings from the “Top 5” tech companies failed to surpass investors expectations.

Apple reported Q2 2020 earnings of $2.55 /share with revenues of $58.3 billion. The earnings beat out estimates of $2.09 /share with revenues of $54 billion. Although the tech giant did not issue a financial forecast for Q2. This is the first time they haven’t forecasted in more than a decade, concerning investors that performance will suffer later this year.

Amazon.com reported Q1 2020 earnings of $5.01 /share with revenues of $75.5 billion. The earnings were estimated to be $6.36 /share with revenues of $73.4 billion.

Today’s drop in the U.S. equities follows the best month in 33 years on the S&P 500.

Roger believes traders should be prepared for a cool-off in U.S. equity markets with a corresponding rise in volatility shown on the VIX (INDEXCBOE:VIX). The opportunities, therefore, in the coming week for traders could lie elsewhere… in gold, in interest rates or non-directional option strategies.

To learn more about how to setup a non-direction option strategy to gain from big moves in the market, while limiting your exposure and downside risk, click here to sign up to our LIVE FREE webinar on Sunday.

Original article: What to Invest In as Amazon & Apple Earnings Disappoint©2020 Midas Letter. All Rights Reserved.

Future of Wealth Head Trader Lance Ippolito joined Midas Letter to discuss big tech earnings reports that have been released this week and the food shortages that could materialize across North America.

There has been a rotation out of small-cap stocks. The Russell 2000 Index (INDEXRUSSELL:RUT) down 3.2% today. Perhaps not the greatest surprise as the index had six consecutive days of green. Capital has, instead, been flowing into the NASDAQ as top players are reporting better-than-expected earnings.

We all still feel the effects of the Coronavirus pandemic – unemployment rates continue to rise and U.S. gross domestic product (GDP) fell by 4.8% in this quarter alone. The fastest drop-off since the financial crisis of 2008.

So, how did the S&P 500 Index (INDEXSP:.INX) still manage to appreciate more than 2% on Wednesday? The answer is due to the proportion of large companies that dominate the index. The 5 largest firms in the S&P 500 make up roughly 20% of it.

Facebook, Inc. (NASDAQ:FB) climbed 4.8% after the social media company reported better-than-expected quarterly revenue and we still wait until after the bell to hear from market leaders: Apple Inc. (NASDAQ:AAPL) and Amazon.com, Inc. (NASDAQ:AMZN)

The pair also discuss the future effect on the economy. We are learning beef and poultry plants are being closed down temporarily because of COVID-19 outbreaks. Is beef and chicken going to disappear from store shelves? Are consumers about to face less selection and higher prices?

As we look into the answer to those questions, McDonald’s Corp (NYSE:MCD) CEO suggests we will see plant-based items on future menus. Will we see veganism as a potential investment play? Possibly, seeing as Beyond Meat Inc (NASDAQ:BYND) shares were up more than 40% last week and report quarterly earnings on May 5.

Original article: Making Sense of the S&P 500©2020 Midas Letter. All Rights Reserved.

Wealthpress Head Trader Roger Scott and Joy of the Trade Head Trader Jeff Zananiri joined Midas Letter to discuss the big week ahead in the stock market. 172 S&P 500 Index (INDEXSP:.INX) companies and 12/30 components from the Dow Jones Industrial Average (INDEXDJX:.DJI) report earnings.

The “Big 5” tech companies: Amazon.com, Inc. (NASDAQ:AMZN), Apple Inc. (NASDAQ:AAPL) Facebook, Inc.(NASDAQ:FB), Google (Alphabet Inc) (NASDAQ:GOOG) (NASDAQ:GOOGL) and Microsoft Corporation (NASDAQ:MSFT) are all reporting. The traders are interested to see if there will be a further divergence between the NASDAQ 100 Index and the S&P 500 Index if those companies earnings are inline with positive expectations. The S&P 500 has been largely weighed down by energy and financial stocks in recent times.

Amazon is expected to come out with positive earnings – perhaps larger than ever before. As e-commerce companies capitalize during the current pandemic, the trio discuss whether this is a temporary phenomenon and what the world is going to look like after the crisis starts to “normalize”.

Its clear to see the economy has suffered since the onset of the Coronavirus or COVID-19. Most indices have supported this plunge in value. Unemployment job claims in the U.S. has been at record highs. However, during more volatile times in the economy, there are still ways for traders to make profits.

As the price of oil plummeted into negative territory for the first time in history, the traders have been profiting from trades such as: Scorpio Tankers Inc. (NYSE:STNG). The negative oil prices are a result of oversupply that doesn’t meet demand due to coronavirus. Oil traders are now selling their future contracts and are not taking the delivery of their oil. Due to this “super contango” situation, oil needs to be stored somewhere. In steps oil shipping tanker companies like Scorpio.

Watch the entire interview to see more companies the investors are making profits trading and where they see the market trending this week.

Original article: Is the Market Still Undervaluing Amazon?©2020 Midas Letter. All Rights Reserved.

Theme: People will learn to live with less!! It may be that this pandemic will have a positive effect on society …perhaps fix the financial inequalities!

We all have our preconceived perceptions waking up in the morning as to what could potentially take place in markets today. We wake up grab our coffee and check the morning headlines, digest and interpret the happenings in the economy from the previous day/weeks, and reflect on our mood to determine if there is a way to make money today. Usually within the first 30 minutes of waking up, I have a fair understanding on the underlying direction markets are going to go. But sometimes not…

No matter what the conclusion of those thoughts turn out to be, the key thing to take away is there is always an opportunity present for investors/traders to turn their cash into further profits.

It isn’t rocket science to say that COVID-19 or the Coronavirus is the number one influencer and catalyst effecting the world’s economy. But as more and more data is released and the unpredictable nature of equity movements or commodity prices develop, it does become challenging to start to predict what is going on.

The wonderful thing about the stock market is every single day brings new events, data, technical indicators, fundamental changes and announcements to think through. With that in mind here is what has caught my eye this week.

Fundamental Analysis

Something no one could have predicted a couple of months ago is the drop-off in crude oil consumption. Collectively, global businesses worldwide are unanimously in lock-down, we have gone from consuming 100 million barrels every single day two months ago to 65 million.

So, if all nations are producing the same quantity of oil as they were before the COVID-19 pandemic, ceteris paribus, there would be an excess of 35 million barrels sitting on the shelves. If my arithmetic is correct.

The uncertainty surrounding the storage for this colossal excess number of barrels sent the price of oil tumbling to a low of -$37.63 per barrel USD. The first time in history the price has been in negative territory. This means anybody who owned oil in May and needed to sell had to pay someone to get the oil off of their hands.

The key takeaway here is that the ongoing Coronavirus pandemic has caused unprecedented shocks to the economy. The worlds resources are sitting idle unlike the toilet paper we can’t get out hands on in shopping centre shelves. The question is: Can this happen again? And will this continue to happen?

Even the company that doctors the entire internet and the reason why you are even able to read this article is suffering during these unfortunate times. Alphabet Inc or Google (NASDAQ:GOOG) (NASDAQ:GOOGL) whose earnings will be released next week, have warned that they could cut advertising by as much as half and are postponing any further hiring. Google spent $18.46 billion on sales and marketing last year – how could this effect the online world moving forward? Especially as businesses are needing to now find solutions to allow employees to work from home.

Coronavirus has swept through the world effecting families, healthcare workers and maybe less importantly but more pertinent to this article: the economy. The number of confirmed cases is approaching 3 million with total deaths amounting to almost 200,000. A further 4.43 million Americans filed for unemployment benefits this week which brings the total number of claims to 26.5 million in the last 5 weeks. The S&P 500 Index (INDEXSP:.INX), even with its rally since the low a month ago is still at half its value from the high set in February. Energy stock prices have also lost half their value.

However, as mentioned, there is always opportunities to be found even when the world economy is struggling. Companies that specialize in products and services positioned to meet the needs the Coronavirus has forced upon the world, are emerging. Amazon.com, Inc. (NASDAQ:AMZN) and Netflix Inc (NASDA

Wealthpress Head Trader Roger Scott joined Midas Letter to discuss the earnings results for the 96 S&P 500 Index (INDEXSP:.INX) companies that reported this week.

S&P 500 traded positively today (+1.39%) although down -1.32% from the close of last week. The index traded lower Thursday due to the disappointing news  unfortunately, leaked from Gilead Sciences, Inc. (NASDAQ:GILD). It was suggested their experimental Remdesivir drug trials, which had hopes to be an effective treatment against the COVID-19 virus, has not been successful.

Interestingly and in contrast to a lot of sectors, 80% of stock within the Consumer Staples sector out performed their earnings per share (EPS). Now, we wait until next week to hear from the “Big 5 in tech” : Amazon.com, Inc. (NASDAQ:AMZN), Apple Inc. (NASDAQ:AAPL) Facebook, Inc. (NASDAQ:FB), Google (Alphabet Inc) (NASDAQ:GOOG) (NASDAQ:GOOGL) and Microsoft Corporation (NASDAQ:MSFT).

Traders predicted the economy would be hit hard with everything that has taken place over the last couple of months. The pair discuss whether the initial reaction to Coronavirus fears were overly drastic as further economic data is released, interpreted and forecasted. The overall sentiment remains whether or not the market movement to such news is in fact scarier than the original fear itself.

There are 3 trading strategies Roger Scott believes are worth pursuing in the current market environment to provide investment opportunities without having to much exposure to negativity volatility:

1) Go bottom-fishing: look for stocks where the price has dropped as of late and are therefore undervalued. The key to this strategy however, is to recognize stocks with the best possibility for upside and prospects of recovery.  This strategy requires patience and is a longer-term play. Take a closer look at the expanding TV services Walt Disney Co (NYSE:DIS) is now providing.

2) Find strength stocks unique to the current Coronavirus situation with in demand products. For example:  Shopify Inc (NYSE:SHOP) and Quest Diagnostics Inc (NYSE:DGX)

3) Non-directional Options strategies especially when volatility is high – making premiums higher (increased profit for less risk). Examples: Iron condor, bear call spreads, bull put spreads.

Original article: Dissecting This Weeks S&P 500 Earnings©2020 Midas Letter. All Rights Reserved.

If you want to put yourself in a position where you can relax and stop anxiously worrying about the future, you need to build your exposure to gold – I don’t care how you do it, but here are the reasons why you must.

We are quickly approaching a time of “hyperinflation”. This is where the rate at which money is printed is happening so fast that the economy and the public slow to appreciate the speed at which purchasing power is evaporating.

But considering the world’s inventory of cash has just increased by a multiple of at least 2, and the global GDP – which represents the total value of all goods produced, among other things, is going to go down at least 10% in the current quarter, you just can’t argue with the fact that the dilutive effect of doubling the money supply is going to devalue the currency.

But most of that central bank-fabricated cash is being siphoned off into the private accounts of the global banking elite, like Jamie Dimon, Lloyd Blankfein, and that ilk. Not overtly – but in very sneaky fashion – through fees and bonuses and various other methods bankers specialize in to justify their overpriced existence.

So it is not having the expected inflationary effect, because those numbers and all the zeros are not being brought to bear on the supply of goods and services. Instead, they are being offloaded, and guess what those largest offshore capital pools are buying?

That’s right. Gold.

I dare you to go to your local gold bullion dealer and ask to buy $100,000 worth of gold bars.

Two things will happen: either a) you will be told they are sold out, or b) they will sell you some, but at a huge markup to the quoted spot price.

In fact, the markup will be several percentage points higher than the quoted spot gold price on markets.

And if you offered to sell him $100,000 worth of gold, the dealer would tell you that he can only buy it at a discount to the quoted spot price.

But if you held out long enough, he too, would be willing to pay a premium to the spot price of gold for your gold, and in fact, you would leave with more than the $100,000 you thought your gold was worth.

That’s because the dealer knows something that the U.S. government doesn’t want you to know; namely, that the purchasing power of the US dollar is going down, and the purest way to see that happening before it shows up as price inflation in stores, is in the value of gold.

When the spot price quoted by the exchanges (who don’t have any gold) fail to reflect what people are willing to pay for it, you have a situation where the price of gold fails to reflect the value of gold. And that is what is happening right now.

Which is also what makes gold the best investment in the world right now.

The problem is getting it.

It takes a tremendous leap of faith, and great deal of confidence, to walk into a bullion dealer and pay 3 -5 % above the quoted market price for any given quantity of gold. (Assuming you can get any)

I have one client in my Financial Communications division left. They are a gold mining company called Galane Gold Ltd. (CVE:GG) (OTCMKTS:GGGOF) (FRA:25G) (Full Disclosure: They have paid a fee of $50,000 to my company to build an investor awareness campaign. I also have 1 million options of the company at $0.10 per share.)

Galane Gold produces gold at two mines: One is in Botswana, and the other is in South Africa. They produced 33,000 ounces of gold last year at all in costs of around $1,000 per ounce. This year, the Galaxy mine in South Africa is shut down due to COVID-19, and the main producer in Botswana is running at 50% capacity, meaning that production will be lower in 2020, but the companies production will be sold at higher prices than in 2019 (assuming the price of gold persists above $1,700).

Here is what I told the Chairman of Galane Gold, Ravi Sood:

I told Ravi that henceforth, I would like to receive our fee in gold. Not cash. Gold.

That’s how convinced I am that gold is going to go higher, and that

Wealthpress Head Trader Roger Scott and CounterVest.com founder Joshua Belanger join Midas Letter to discuss the “relief” rally in markets as COVID-19 fatality rates are reported to be lower than previously anticipated.

The S&P 500 Index (INDEXSP:.INX) has rallied more than 25% since the large market correction in March due to the pandemonium and uncertainty the virus caused.

However, data being released this week is starting to look a little less rosy. Company earnings are reflecting the toll Coronavirus has had on the economy and unemployment data is expected to decline for a third straight week. April’s US Non-Farm Payrolls report is expected to show around 20 million people have lost their jobs in the USA alone. To put that number into perspective: that is more than the entire work force in Canada or the total population of Australia.

Due to these negative statistics and the fact there is no immediate Coronavirus cure or systematic testing in place, the trio are expecting a wake-up call in markets with increased volatility in the short-term.

There are 96 S&P 500 companies reporting their financials this week which will give a clear indication of what the economy will look like moving forward and how companies will deal with the changes the Coronavirus has thrust upon them.

There are four opportunities in which traders can profit from the current market conditions. Traders can invest in:

1) Companies with inelastic demand during the Coronavirus crisis (products people need). Examples: Quest Diagnostics Inc. (NYSE:DGX) – The company says it can now perform 45,000 tests per day, providing results in as little as a day. Teladoc Health Inc. (NYSE:TDOC) – The only listed company in the U.S. providing health and medical consultation services via telephone and video calls.

2) Companies with slashed valuations due to the Coronavirus, with expectations of an eventual rebound (Long-term plan).

3) Companies with large insider buying. Companies where management have put their money where their mouths are, so-to-speak. When company executives invest back into their own companies, this is an indication that company future prospects are better than perhaps what the average investor can see in them.  Examples: Williams-Sonoma, Inc. (NYSE:WSM) – Company Director bought 9,600 shares on April 9 for an average price of $50.55. The share price has increased 2.16% since then. MGM Resorts International (NYSE:MGM) – One company Director purchased 1.6 million shares worth over $19.6 million. Another company Director bought 522,000 shares worth $5.9 million.

4) Next generation communications. Examples: Telefonaktiebolaget LM Ericsson (NASDAQ:ERIC) – Company has delivered the fastest 5G speeds globally. Zoom Video Communications Inc. (NASDAQ:ZM) – Video conferencing needed for remote collaboration where shares have surged more than 120% due to the Coronavirus.

Watch the full video to learn how to invest in todays market with both short-term and long-term goals in mind.

Original article: 5G: Conspiracy Theory or Next Greatest Investment?©2020 Midas Letter. All Rights Reserved.

Wealthpress Head Trader Roger Scott joined Midas Letter to discuss the perplexing nature of the stock market this week as the Coronavirus pandemic continues.

There has been further record breaking news released this week that theoretically should have seen markets take a nose dive on a fundamental basis.

5 million more people in the US workforce filed first-time unemployment claims this week, bringing the total statistics to 22 million in one month. China’s GDP contracted 6.8% in the Q1 – its first decline in the economy since 1991.

However, the S&P 500 (^SPX) has ignored these fundamental shocks to the global economy and in contrary has reached almost bullish territory – growing 4.64% since the low at the beginning of the week.

The Head Trader has been shorting the CBOE Volatility Index (^VIX) – the index which measures market volatility and is often used to track investor fear. As the S&P 500 rises consistently higher, the less uncertain investors are speculated to be, driving the VIX price down.

Roger Scott is looking towards the medical sector as a handful of pharmaceutical companies have taken steps closer to find a cure for COVID-19.

Early data released by Gilead Sciences, Inc. (NASDAQ:GILD) suggest patients are responding positively to its coronavirus drug. Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN) have identified virus-neutralizing antibodies and have plans to initiate large-scale manufacturing of its treatment therapy.

Watch the complete interview for a comprehensive analysis of overall economic sentiment and forward projections looking into next week and the longer-term.

Original article: How to Profit in the Stock Market as Coronavirus Cure Nears©2020 Midas Letter. All Rights Reserved.

Future of Wealth Head Trader Lance Ippolito joined Midas Letter to discuss the “do’s” and “do not’s” for traders in today’s current economic climate.

Even with the volatile nature in the stock market since the onset of the COVID-19 crisis, internet software companies inside the technology sector have experienced 52-week highs. The e-commerce titan Amazon (NASDAQ:AMZN) hit 2,313.88 today, a new all-time high, and is up 22% on the year. This is in stark contrast to the rest of the market as the S&P 500 has declined 13% in the same time horizon. JD.com (NASDAQ:JD), the e-commerce company and retail infrastructure service provider in the People’s Republic of China, also hit a new 52-week high.

Although there are companies achieving success in the market, particularly in e-commerce, the Head Trader does not necessarily believe, in general, there are signs of the economic weakening stemming from the Coronavirus pandemic.

The financial sector has been under amounting pressure this week from weak earning reports and poor outlooks as banks are setting aside funds to deal with expected loan losses. The bleak outlook in the stock market has seen investors seek safety by not investing. People are feeling the need to hold onto their cash. Cash levels in the US have spiked to 5.9% – which is the the highest level seen since 9/11.

Watch the entire interview to see what Lance is trading and how to make money as these key economic themes unravel.

Original article: Trading Strategies to Combat Financial Sector Woes©2020 Midas Letter. All Rights Reserved.

Talisker Resources Ltd (CNSX:TSK) (OTCMKTS:TSKFF) (FRA:2E6A) CEO Terry Harbort joined Midas Letter to discuss advancing its systematic exploration program in British Columbia. Talisker’s projects include the Bralorne Gold Complex, an advanced stage project with a historical high-grade producing gold mine, as well as the companies primary focus – the Spences Bridge Project. With the company’s properties comprising 277,292 hectares over 312 claims, six leases, 181 crown grant claims, 23 geologists in the field, a couple of thousand stream sediment samples, and defined numerous drill targets, Talisker is a dominant exploration player in south-central British Columbia. Watch the entire interview to learn about Talisker’s drill programs progress this year.

Original article: Meet the Junior Explorer Aggressively Drilling Highest-Grade Gold Mines in Canada©2020 Midas Letter. All Rights Reserved.