Advertising

Rating Card

Unlock Expert's Rating and Top Picks Portfolio

Become a member Or, Sign In

Stock Opinions by Brian Kelly

SELL ON STRENGTH
https://www.cnbc.com/2021/10/25/tesla-hertz-ev-deal-signal-to-rental-car-fleets-its-time-for-electric.html It joined the $1-trillion club today. It saw a massive breakout today, despite all the haters, which impacts what people think of the fundamentals. Tesla will definitely contribute to the de-carbonization of the electric grid. He won't short Tesla, but he's very skeptical of this at these levels. We're probably in the last phase of this bull market. The stock will probably go straight up. (Fundamentals don't matter.) This could hit $2,500 in a few quarters, and then he'd sell it.
0
COMMENT
Oil outlook as the price keeps surging It's likely oil will see another boom-and-bust cycle; ESG is a major influence as investors move out of oil and into renewables. He's long oil. He sees a trade in these oil stocks, though. He prefers the integrated energy companies (didn't name one).
Unknown
COMMENT
It's up 1.5-4% after hours despite a mixed earnings report, but up because of further share buybacks. People were already concerned about the Apple data issue on Facebook, so that's already priced into the share price. The share buyback is good enough to keep shares above current support, and in fact likely gets a little bounce. But he's worried about stalling user numbers. Add to this political headwinds. FB can still rise, but it's not as great a buy as it was 6 months ago.
0
COMMENT
Mastercard announced that any of its merchants can soon offer crypto services. It's a very big deal, this adoption of cryptos. He sees four phases of crypto adoption: the venture capital phase, growth phase, commodity phase, and now it's heading to the last phase where Bitcoin becomes a usable currency through Mastercard.
Unknown
SELL
If he owned it, he'd sell it. It's tripled since May. There's competition in the space, flooding in now. And investors have priced in a lot of growth. Sell a third. DO NOT buy it. If you're aggressive, then dump it.
Technology
WEAK BUY
Rivian's e-truck (via a new SPAC) to compete with the e-F150 Rivian will be a player in the EV space, but this competition isn't a new story. You're okay with Ford. The stock may want to break out.
Automotive
BUY
It's been rallying. He believes in the current break-out. In the past year the stock didn't go down, but flatlined, rested. The bigger the base, the higher the space and this can go higher.
Unknown
COMMENT
Japan is rallying to a 30-year high after their PM resigns He feels this is the most important story in markets now. For 30 years there's been a trade where you borrow Japanese yen and use it to get US dollars and buy US stocks. This is why the USD-Yen is strongly correlated to the S&P 500. Every bank and company in Japan is taking money from Japan and investing in the U.S. because they can't get a return in Japan. BUT with the PM resigning and the potential for more stimulus in Japan that'll put money into people's pockets, the Japanese stock market should take off now after basing for the last 30 years. This is huge, because all of those flows over the past 30 years COULD reverse and it will hit every asset class. Remember, Japan is one of the biggest buyers of U.S. treasuries. So everything in the last decade could be upended. Any party will likely issue stimulus during an election.
Unknown
STRONG BUY
See also his comments today about Japan's PM resigning and the effect on the Japanese market. What's happening here is huge! Impactful. EWJ offers Japanese stock exposure and long yen exposure.
E.T.F.'s
BUY

Nvidia is one of his favourites because of this big momentum market. Prefers it to, say, Netflix.

computer software / processing
BUY
GM is expanding its massive recall of its Bolt e-car. Down 3% after hours. This bad news makes GM's risk/reward better, in fact. Shares have come down from $65 to $45, which is support. On Monday, watch for a reversal--it opens lower, then climbs higher, the classic bad news--good price action. You're not buying GM beacuse you believe the Chevy Volt is the car of the future, and if you are, then you deserve to lose money in GM.
Automotive
COMMENT
The USD is at 9-month highs and there are fears of a housing bubble in China. If the USD keeps getting stronger for 3 weeks-3 months, it won't be good for the world economy or emerging markets. The USD is the new VIX. Don't buy foreign stocks at all. He's surprised that risk assets aren't pricing in the popping of China's housing bubble--and they should.
Unknown
COMMENT
Emerging markets pick India by far would be his top choice in emerging markets or Asia, driven by fintech and digital technology.
Unknown
COMMENT
The New York Times reports that the FDA will give full approval to Pfizer's Covid vaccine (for booster shots). He wouldn't rush in after-hours to buy Pfizer, because he's wary of such after-hours moves. Such trading is thin, low-volume.
biotechnology / pharmaceutical
WAIT
It reports next Thursday. It's been rangebound. However, if it breaks out of this current channel it will rise higher--and has a lot of room to run. That said, wait till that earnings report first.
electrical / electronic
Showing 1 to 15 of 29 entries