Connect with us

Markets

3 Stocks To Watch During A Weak Stock Market

Published

on

The U.S. Stock Market is seeing a increase in supply the past 3 trading sessions on fears of Covid-19, U.S Dollar rise, Yields falling. The bottom line is Wall Street fears growth may have temporary peaked for many companies. 

Today the S&P 500 is down over -1.50% ($-64.75) with 10 year treasury note futures up massive +0.62% (+0’270).  

Crazy Fact
  • The number of NYSE stocks under the 50 day moving average are the lowest since October of 2020.

“Bond yields rise and fall with the business cycle. The business cycle has peaked and will ease off significantly and so bond yields will fall.”

— Raoul Pal, @RAOULGMI


Costco Wholesale

Costco [NASDAQ:COST] is a stock that traders tend to keep a eye on during weak market conditions. Today Costco hit a new all time high, so I want to take the time to congratulate subscribers to our powerhouse report because Costco was featured on the report last week.

If you did not read the report you can: HERE

Why is Costco strong during a weak market?

During the heart of the pandemic Costco really showed its true colors as the company separated themselves from other retail stores such as Walmart. While analyst believed there would be a declaration in sales in stores like Walmart, they believed Costco would not “participate” in a sales drawdown”

“With Costco’s average member skewing from an affluent demographic and the solid execution of its model, we think this strength should continue even as stimulus and unemployment benefits wane,”-Analyst on Costco in 2020

When a economic slowdown is feared upon, investors have looked at Costco in the past. This is because their average customer household income is around $100,000 annually. To put in perspective, Walmart’s customer has a average household income around only $50,000. 

Knowing that Costco’s customer base has steady and decent income, they are less likely to see a contraction in their customer shopping habits during a economic slowdown.

Gas Prices Rise

Costco is more than just a wholesale food store. They offer some of the most competitive gas prices and with unemployment benefits ending, people will have to drive more when they start to work. This could result in more revenue from Costco’s gas.

View full chart here on TrendSpider

As the stock made new highs today before pulling back  it is worth noting the last 3 trading sessions traded in a very tight range. This is note worthy because the overall market saw elevated volatility that resulted in selling. The fact the Costco did not see its stock follow the markets weakness is a potential sign that strong hands are in this stock and not as much supply is coming to the market.


Autonation [NYSE:AN]

Shares of Autonation are trading higher today after the company reported earnings. The company reported a very large earnings beat announcing quarterly earnings of $4.38 per share which beat consensus estimates of around $2.85 per share.

Quick Take
  • Quarterly earnings increased a massive +243% year over year. This is the second quarter in a row they reported growth over 200%. This was a all-time record quarterly EPS.
  • Quarterly sales increased +54% year over year. Their revenue at $7.0 billion for the quarter was a all-time record.
  • Annual EPS is projected to increase around 48% in 2021
  • The company saw a increase number of funds take positions in their stock last quarter as it increased from 674 to 699.
Share Buyback Announced

The company is said to have repurchased $736 million worth of its stock in the 2nd quarter. On top of that, the company announced a additional $1 billion buyback of their shares have been authorized. 

 

“Demand continues to outpace supply for new vehicles. We expect this to continue into 2022 due to consumers’ preference for personal transportation coupled with lower interest rates.”-Mike Jackson AutoNation’s, CEO

View full at TrendSpider

The company is seeing their share price make new all-time highs after they announced multiple record numbers in their earnings release.


Microsoft Corporation [NASDAQ:MSFT]

MSFT has been one of the strongest stocks since June. As the company saw their share prices rise 10 out of 14 trading sessions. 

View full chart at trendspider

MSFT has a few things to note from a technical perspective. 

The Bad
  • MSFT daily MACD in bearishly converging as it trades with the market indices. This points that momentum has been to the downside.
  • The trendline did break and supply did come in.
What To Watch
  • As this is one of the most known stocks out there, investors and traders could use this pullback as a point to buy. 
  • It held support around $275. This area of support has held 4 times now.

Follow the author on twitter: @ChartBreakouts

Contact: info@lussosnews.com

Markets

The Most Shorted Stocks as of Late March 2024

Published

on

DO NOT MISS THIS FREE OPPORTUNITY!

ARE YOU A TRADER?

DO YOU WANT FREE STOCK PICKS?

CHECK THIS OUT….


Short selling is a strategy used by investors who believe that a stock’s price will decline, allowing them to buy it back at a lower price in the future. Market participants closely watch the most shorted stocks as they can be indicative of market sentiment or potential volatility. Based on the latest data from MarketWatch, here are the stocks with the highest short interest as of March 28, 2024.

1. IMAC Holdings Inc. (NASDAQ: BACK)

  • Price: $3.30
  • 1-Day Change: +6.80%
  • Year-To-Date Change: +49.32%
  • Short Interest: 880,148 shares
  • Percent of Float Shorted: 93.92%

IMAC Holdings stands out with a massive 93.92% of its float being shorted, indicating significant bearish sentiment despite a strong year-to-date performance.

2. XTI Aerospace Inc. (OTC: XTIA)

  • Price: $2.86
  • 1-Day Change: +5.15%
  • Year-To-Date Change: -49.11%
  • Short Interest: 381,503 shares
  • Percent of Float Shorted: 78.91%

XTI Aerospace has seen nearly 79% of its float shorted amidst a substantial decline in its stock price this year.

3. SunPower Corp. (NASDAQ: SPWR)

  • Price: $1.96
  • 1-Day Change: -8.41%
  • Year-To-Date Change: -59.42%
  • Short Interest: 39,254,967 shares
  • Percent of Float Shorted: 76.64%

SunPower, a solar energy company, faces skepticism with over three-quarters of its float shorted following a sharp drop in its stock price.

4. BYND Cannasoft Enterprises Inc. (NASDAQ: BCAN)

  • Price: $0.97
  • 1-Day Change: +6.61%
  • Year-To-Date Change: -98.50%
  • Short Interest: 410,370 shares
  • Percent of Float Shorted: 75.67%

BYND Cannasoft has witnessed an extreme decline in its price this year, coupled with a high short interest.

5. B. Riley Financial Inc. (NASDAQ: RILY)

  • Price: $21.72
  • 1-Day Change: +0.84%
  • Year-To-Date Change: +3.48%
  • Short Interest: 12,260,125 shares
  • Percent of Float Shorted: 75.47%

B. Riley Financial appears more resilient, showing a positive year-to-date return, yet it still faces significant short pressure.

Other Notable Mentions:

  • Biomea Fusion Inc. (NASDAQ: BMEA), Arbor Realty Trust Inc. (NYSE: ABR), and MicroCloud Hologram Inc. (NASDAQ: HOLO) also feature in the top 10 most shorted stocks, with short interests ranging from 41% to 48%.

Analysis:

Investors short sell stocks for various reasons, including speculation on price declines or hedging against potential downturns. The companies listed above are experiencing significant short interest, which could lead to price volatility, particularly if there is a sudden positive shift in their fundamentals, possibly leading to a short squeeze.

It’s essential for investors to conduct thorough research and consider multiple factors when investing in or short selling stocks, especially those with high short interest, as they can be particularly volatile.

Continue Reading

Markets

Understanding a Flash Crash in the Stock Market

Published

on

DO NOT MISS THIS FREE OPPORTUNITY!

ARE YOU A TRADER?

DO YOU WANT FREE STOCK PICKS?

CHECK THIS OUT….


In the fast-paced world of finance, few events can instill as much immediate fear and confusion as a “flash crash.” This term describes an event where stock prices plummet sharply within an extremely short period—often just minutes—before often rebounding just as quickly. These rapid and dramatic movements can result in substantial market disruptions, affecting a wide range of assets including stocks, bonds, and commodities.

Origins of a Flash Crash

The concept of a flash crash became widely recognized after the most notorious example, which occurred on May 6, 2010. During this event, the Dow Jones Industrial Average fell about 1,000 points (over 9%) only to recover those losses within minutes. This sudden plunge and recovery highlighted inherent vulnerabilities in the market structures and systems.

Causes of Flash Crashes

Flash crashes can be triggered by a variety of factors, which often interact in complex ways:

  1. High-Frequency Trading (HFT): Many analysts attribute the rise of flash crashes to the increase in high-frequency trading, where firms use algorithms to execute millions of orders at lightning speed. These algorithms can sometimes create feedback loops if they start to sell off assets in a falling market, amplifying the initial decline.
  2. Market Structure Issues: The fragmentation of trading venues and the varying rules and technologies used by these platforms can also contribute to flash crashes. Disparities in trading rules and protocols can lead to situations where automated systems behave unpredictively or inefficiently.
  3. Liquidity Crunches: Flash crashes are often exacerbated by a sudden lack of liquidity. As prices begin to fall, automatic stop-loss orders can trigger further selling, but if there aren’t enough buyers, prices can drop precipitously.
  4. News and Social Media: Sometimes, an erroneous news report or a significant surge in social media activity can spur rapid trading actions by algorithms that parse news and data for trading signals.

Impact and Responses

The impact of a flash crash is broad. In the short term, investors can see huge losses, and confidence in the markets can wane. For traders, the volatility can result in significant financial damage, especially for those who are unable to react quickly enough to the abrupt price changes.

In response to flash crashes, regulatory bodies have implemented several measures to prevent or mitigate their effects. For example, after the 2010 crash, the U.S. Securities and Exchange Commission (SEC) introduced “circuit breakers” that temporarily halt trading in a stock if its price drops too quickly.

Preventative Measures

Beyond regulatory changes, there’s also a push for improved risk management strategies within trading firms, especially those employing high-frequency trading algorithms. These measures include more sophisticated and robust systems to monitor and control trading activities and improved testing of algorithms to ensure they behave as expected during market stress.

The Ever-Evolving Market Dynamics

As markets evolve and the use of technology deepens, the potential for flash crashes remains significant. This necessitates continuous advances in both technology and regulation to safeguard against the risks posed by these rapid and unpredictable market events.

Understanding flash crashes is crucial for anyone involved in the trading world, from regulators and traders to ordinary investors trying to navigate the complexities of modern financial markets. Recognizing the signs and potential triggers of flash crashes can help market participants better prepare for and potentially avoid the risks associated with these startling events.

Continue Reading

Markets

A Glimpse Into the Buzz of Upcoming IPOs in April 2024

Published

on

DO NOT MISS THIS FREE OPPORTUNITY!

ARE YOU A TRADER?

DO YOU WANT FREE STOCK PICKS?

CHECK THIS OUT….


The investment atmosphere is heating up with a series of intriguing initial public offerings (IPOs) set to hit the market in late April 2024. This month features a diverse lineup of companies poised to go public, ranging from technology innovators to international restaurant chains. Here’s a detailed look at some of the most anticipated IPOs.

Tungray Technologies Inc. (TRSG)

Exchange: NASDAQ Capital
Price: $4.00
Shares: 1,250,000
Expected IPO Date: 4/19/2024
Offer Amount: $5,000,000
Tungray Technologies is stepping into the public market with a modest offer amount. The company’s focus on innovative tech solutions might attract investors looking for new growth opportunities in the tech sector.

RanMarine Technology B.V. (RAN)

Exchange: NASDAQ Capital
Price: $5.50
Shares: 1,435,000
Expected IPO Date: 4/19/2024
Offer Amount: $9,076,375
RanMarine Technology, known for its advanced marine technology solutions, is also set for the same date. With a slightly higher offer amount, it shows potential for considerable market interest.

Sushi Ginza Onodera, Inc. (ONDR)

Exchange: NYSE MKT
Price Range: $7.00-$8.00
Shares: 1,066,667
Expected IPO Date: 4/19/2024
Offer Amount: $9,813,336.40
Offering a culinary twist to the IPO scene, Sushi Ginza Onodera is preparing to serve not just premium sushi but also potentially premium stock value.

mF International Ltd (MFI)

Exchange: NASDAQ Capital
Price Range: $4.00-$5.00
Shares: 1,560,000
Expected IPO Date: 4/22/2024
Offer Amount: $8,970,000
This global firm is entering the market with a flexible price range, suggesting a cautious yet optimistic approach towards investor reception.

YY Group Holding Ltd. (YYGH)

Exchange: NASDAQ Capital
Price Range: $4.00-$5.00
Shares: 1,500,000
Expected IPO Date: 4/22/2024
Offer Amount: $8,625,000
YY Group is another promising prospect with its roots in technology and digital transformation, aiming to capture the tech-savvy investor’s eye.

Key Mining Corp. (KMCM)

Exchange: NYSE MKT
Price: $2.25
Shares: 4,444,444
Expected IPO Date: 4/25/2024
Offer Amount: $11,499,999.80
Diving into natural resources, Key Mining is set for a significant offering, indicating robust investor confidence in its mining operations and commodity potential.

Marex Group plc (MRX)

Exchange: NASDAQ Global Select
Price Range: $18.00-$21.00
Shares: 15,384,615
Expected IPO Date: 4/25/2024
Offer Amount: $371,538,447
As one of the heaviest hitters this month, Marex Group plc commands attention with its substantial offer amount, reflecting its established market presence and investor trust.

Rubrik, Inc. (RBRK)

Exchange: NYSE
Price Range: $28.00-$31.00
Shares: 23,000,000
Expected IPO Date: 4/25/2024
Offer Amount: $819,950,000
Rubrik stands out with a massive offer, targeting tech investors interested in data management and cloud services, marking it as one of the blockbuster listings of the month.

Loar Holdings, LLC (LOAR)

Exchange: NYSE
Price Range: $24.00-$26.00
Shares: 11,000,000
Expected IPO Date: 4/26/2024
Offer Amount: $328,900,000
Loar Holdings is geared up to make a significant impact with its sizable offer, highlighting its robust positioning in the manufacturing sector.

ZenaTech, Inc. (ZENA)

Exchange: NASDAQ Capital
Expected IPO Date: 4/30/2024
Offer Amount: $7,100,900
Wrapping up the month, ZenaTech will test waters with a strategic focus on tech innovations, appealing to niche investors keen on cutting-edge technologies.

April 2024 is shaping up to be a dynamic month for the IPO market, showcasing a wide range of sectors and opportunities. Investors are advised to keep an eye on these dates and delve deeper into each company’s prospects before making investment decisions. Each of these companies presents unique opportunities and challenges, marking another exciting chapter in the financial markets.

Continue Reading

Trending