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Stock Opinions by Steve Grasso

BUY
Year-end seasonal trades Sonos. headwinds were supply shortages, but are now settled. Also, travel names and Costco will rally. People are planning vacation 6-9 months out in airplanes and hotels. For cyclicals, buy banks if you think interest rates will rise.
communications / media
BUY
Year-end seasonal trades Travel names and Costco will rally. People are planning vacation 6-9 months out in airplanes and hotels. For cyclicals, but banks if you think interest rates will rise.
department stores
COMMENT
We should test that 10-year yield level of 1.74%, the high earlier this year, and probably surpass it. Then, there'll be a lot of fanfare, yadda yadda. Actually, he thinks we won't see a lot from the Fed for the rest of 2021 apart from doing a few things around the edges, but nothing to hamper the rally. The large tech names will be fine. Mega-growth names will continue to fade. A concern is if the cyclicals move forward during deflation vs. inflation; he expects there'll be a little rotation. Overall, markets go higher.
Unknown
BUY
All the airlines look like they're reading to bounce. Expedia ran from $157 to $188, then stopped on a dime right at the 50% retracement, so it looks due for a run up.
merchandising / lodging
BUY
Up 25% this year. Buy. During the pandemic people ordered out and now people are dining in. The chart says this wants to bounce. He'd still buy this. He likes the chain and restaurants. The future looks brighter than the present.
food services
DON'T BUY
A reluctant pass. The chart looks excellent and he loves the company, but it all comes down to their drive-thrus which they've executed very well. But people want a dining-in experience now and the chart is slightly overextended.
food services
BUY
https://www.cnbc.com/2021/10/25/tesla-hertz-ev-deal-signal-to-rental-car-fleets-its-time-for-electric.html Close your eyes and buy. It can still go more parabolic, but he wouldn't take profits. Compare it to an EV company, they'll say that Tesla has better battery storage, so it's a real EV battery play vs. an EV company. Either way you perceive it, Tesla wins. If they announce another split, people will buy it, even though there's no fundamental reason to buy it. Elon Musk has so many levers to pull, so you can close your eyes and buy it. A huge tailwind are subscription services worth $7,00-10,000; batteries are a small part of revenue now, but it will tick up. Think of Apple's services. Hitting $2,500 in a few quarters? That's a ludicrous speed.
0
DON'T BUY
They were once bulletproof, but now they're showing weakness. The buyback may support shares tomorrow. A week ago, FB bounced off its 200-day moving average, then fell right into its 200-day right before today's report. This means there's embedded weakness in the stock. We're starting to see critical mass where people are not getting behind FB, and rather advertising dollars are supporting FB. CEO Zuckerberg doesn't look as sympathetic to the public anymore. The stock is seeing a bounce now, but not as strong as recent reports.
0
COMMENT
Mastercard announced that any of its merchants can soon offer crypto services. MA is up 1% YTD, but Visa is up 7% and AmEx 15%. Stay with AmEx. Remember that most banks won't let you buy cryptos; banks are so behind this story and when banks do adopt cyptos then Bitcoin can go much higher.
other services
BUY
He still likes it. If you believe that commodities will move higher, you want to be in the E&P space, because they have upside exposure. If you want to get paid like an annuity with a 6% yield, then KMI is safe to collect. Even better and more well-rounded is Exxon which is up 56% YTD. KMI is definitely a safe, good bet.
pipelines
BUY
AmEx earnings showed that the corporate client is coming back, so corporate travel should come back. Headwinds will eventually turn into tailwinds. The market is waiting-and-seeing now. Ultimately, this sector will be worth owning.
Transportation
COMMENT
Mastercard announced that any of its merchants can soon offer crypto services. MA is up 1% YTD, but Visa is up 7% and AmEx 50%. Stay with AmEx. Remember that most banks won't let you buy cryptos; banks are so behind this story and when banks do adopt cyptos then Bitcoin can go much higher.
Unknown
BUY
Mastercard announced that any of its merchants can soon offer crypto services. MA is up 1% YTD, but Visa is up 7% and AmEx 50%. Stay with AmEx.
investment companies / funds
SELL ON STRENGTH
The current low-rate environment helps megacap tech like Netflix. He's lukewarm on the name though. It could trade down 10% which would be a great buy, not now. He'd sell it now, in fact. The stock is up only 9% but is overbought.
Unknown
COMMENT
Markets shrugged off today's disappointing jobs numbers The market is digesting today's numbers without getting shocked. Bad economic news is good news for the marketplace. It's healthy today that the market was not shocked. Maybe we're still in a sweet spot, but he's less optimistic and feels September will see a 5-7% pullback. Overall, stay the course in the market. Investors are getting complacent. Weaker job numbers increases the odds of more government stimulus. Also, bond yields rose today, which makes stocks a tiny bit less attractive. He's a little skeptical about fall seasonality.
Unknown
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