What you need to know this week
Stock markets down this morning, but still basically at all-time highs. Earnings season often helps separate the wheat from the chaff. But don’t try to game each individual report with a big chunk of money or anything. Steady as she goes.
Don’t forget this week’s Live Q&A Chat at 2pm EST at http://tradingwithcody.com/Chat.
Let’s run through some Revolution Investing must-reads this morning. We have to keep connecting the dots out there, if we want to stay ahead of the curve.
Girls born today will live until they’re 83 – Here’s a picture from my night last night, in which my daughter’s 96 year-old great grandpa just discovered reading big font books on my 12″ Android tablet. Amazing.
I did not front-run Allergan stock, Ackman says – Who was on the OTHER SIDE of those call options trades that was selling the call options to Ackerman? Did they not lose billions on this insider-ish deal? I can’t imagine the market makers were able to FULLY offload their risk in shorting all $3BB in call options to Ackerman to the broader market. See chart below for details on the ahem– strange activity in Allergan into the bid from Valeant which partnered with Ackerman to make the bid.
Why Investors Should Avoid Momentum Stocks – I don’t ever usually try to nail “the bottom” or “the top” in my trades and especially in my long-term investments like Facebook. I had trimmed some FB when it was above $70 and I added that tranche back when it hit $56. I’ll buy more if it goes to $50 in the near-term. I’ll probably trim more if it goes back above $70 in the near-term. I’ll be flexible and take whatever pitches the markets throw my way. And they threw me the FB at $56 pitch a couple weeks so I took a small swing at it.
Activists Wept for There Were No More Worlds to Conquer – It’s tough for any serious activist to get excited when valuations are rather mindblowing out there. I mean, Netflix is worth $20 billion right now vs the $30 billion it was worth a couple months ago. Not really that big of a difference despite it being down 30%, in that regards. Either way, any potential acquirer would have to offer more than either of those numbers to get shareholders to sell out.
3 stalwart tech stocks loved by investment pros – Big tech is well picked through at this point of the cycle. I’d like to add some non-tech exposure to the portfolio next, I think. I want something completely off the radar. But in this 0% rates and QE environment, I’m not sure there is such a thing as “off the radar.” Tell me your best “off-the-radar” idea in the comments below or on Scutify.
