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TOP PICK

Microsoft Corporation is an American multinational technology corporation headquartered in Redmond, Washington. Microsofts best-known software products are the Windows line of operating systems, the Microsoft Office suite, and the Internet Explorer and Edge web browsers. Social media mentions are up 400% in the past 24h.

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🔒 Premium Content Alert – This buzzing stock opinion is accessible only to Stockchase Premium

Discover an exclusive list and analysis of the stocks that are trending on social medias—accessible only to our Premium subscribers. With a keen focus on the stocks that are setting social media ablaze, this weekly feature offers an invaluable lens through which to evaluate market movers. Say goodbye to the endless scroll through social media timelines; we curate the buzz so you can invest your time as wisely as your money. Unlock Premium Now.

TOP PICK

Tesla, Inc. is an American multinational automotive and energy company headquartered in Austin, Texas. Tesla designs and manufactures electric vehicles, stationary battery energy storage devices from home to grid-scale, solar panels and solar roof tiles, and related products and services. Social media mentions are up 500% in the past 24h.

COMMENT
Investing since the pandemic.

There's a lot of activity over the past few years that's analogous to the year 2000 and Y2K. Markets took off in March 2020, but then reality set in. We had government and bank interventions adding to this turmoil, and what we have is a lot of uncertainty. We see visibility coming in now and more steady results from a regular economy. 

There's still volatility, especially with tech stocks and their big drop last year with a big rebound this year. A good example is NVDA with its big beat post-close yesterday, but turning around today.

COMMENT
Tech stocks.

NVDA's at all-time record highs, which is very good in light of everything that's going on. MSFT and GOOG are also doing very well. NVDA's the exception, but most of these stocks are getting close to highs we've seen before. You need a lot of enthusiasm to push buyers to move stocks higher. It's been a very long decline and recovery, so we'll see where we go.

COMMENT
Charts for lumber and wheat.

Look at input costs for the things we buy as the cause of inflation. Wheat peaked last year and then declined. Even though prices to the consumer are not going to be reduced too much, it's nice to see the trend. We see this trend with lumber as well. 

These are indicators of what could happen. World shipping peaked, and activity and prices are now coming down. Things are getting back to normal, inflation is coming down. See his Top Picks for trading ideas on this theme.

DON'T BUY

Avoid. Consumer discretionary. Not a lot of great growth opportunity here. Consolidation around $140-160. The Consumer Index is slowing down and will affect stocks like this.

DON'T BUY

Looks like it will go down to $68. Consumer spending is slowing down. You want to see a breakout above $81-82. Of the 10K stocks you can look at, there are better ones with better patterns. 

COMMENT
Markets.

He's moderately bullish on the markets, "cautiously optimistic". No matter how optimistic you might be, you have to have exit strategies. Now, you don't want to be selling everything if it drops 5%, or else you'll be buying and selling at a loss. Things are a little more normal now, so you can be a little tighter with the stops.

BUY

Hard-pressed to find any downside. One of the best stocks on the Canadian market. Average rate of return is 34%. May pause, but doesn't look like slowing down. Make sure it stays above a trend line, or apply moving averages and keep holding as long as it stays above the 200-day MA. It's more a buy and hold, not a trade.

PARTIAL BUY

Looks to be on a downslide. Consolidating, so probably won't go much lower. Buy a bit, hoping for a breakout to the upside. If drops below $13, will probably be more sellers than buyers, so be careful. Yield is a decent 7.8%. 

HOLD
BAM vs. BN

Over the next year interest rates should reverse, so we should see some good pickup in stocks that are yield plays. Not looking for big gains on these types of stocks.

Chart for BN shows the common pattern of a peak in 2021, and then a decline in 2022. Lots of correlation with the market. Now the stock's bottoming out, and we'll have to see where the next trend is. Decent support around $41, so you're OK if it stays above that. So many other stocks to choose from, he wouldn't touch this one.

BAM has been consolidating. Hard to trade, as the trading range is quite narrow. It's a buy from a yield perspective. If it breaks above $48 and hits a new level, a whole new round of buyers will come in. Holds it for some clients as a way to diversify.

DON'T BUY
BN vs. BAM

Over the next year interest rates should reverse, so we should see some good pickup in stocks that are yield plays. Not looking for big gains on these types of stocks.

Chart for BN shows the common pattern of a peak in 2021, and then a decline in 2022. Lots of correlation with the market. Now the stock's bottoming out, and we'll have to see where the next trend is. Decent support around $41, so you're OK if it stays above that. So many other stocks to choose from, he wouldn't touch this one.

BAM has been consolidating. Hard to trade, as the trading range is quite narrow. It's a buy from a yield perspective. If it breaks above $48 and hits a new level, a whole new round of buyers will come in. Holds it for some clients as a way to diversify.

SELL ON STRENGTH

A lot of tech stocks will never see their highs again. Best hope here is mid-$60s. On a bit of a downslide. Potential to lose half its value very quickly. Not a buy the dip and trade. If drops below $53, reduce; below $50, get out.