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    Monday, June 1, 2020

    Stock Market - Here’s why the ‘unloved but welcome’ U.S. stock market rally from March lows won’t last, Goldman says

    Stock Market - Here’s why the ‘unloved but welcome’ U.S. stock market rally from March lows won’t last, Goldman says


    Here’s why the ‘unloved but welcome’ U.S. stock market rally from March lows won’t last, Goldman says

    Posted: 01 Jun 2020 08:56 AM PDT

    Brief hopes that U.S.-China trade tensions may subside appear to have been dashed.

    Investors had breathed a sigh of relief on Friday when President Donald Trump chose not to mention sanctions or tariffs at a press conference about China's new security law in Hong Kong.

    However, Beijing is set to pause purchases of certain U.S. products, including soybeans, according to reports, causing stock stocks to struggle at the open. Futures traders had initially shrugged off a weekend of protests against police killings of black people. After opening lower the Dow Jones Industrial Average DJIA, 0.18%was 0.3% up in early trading.

    Optimism over the economic recovery from coronavirus, with all 50 states taking steps to reopen, has sent stocks higher in recent weeks.

    In our call of the day, Goldman Sachs analysts said the "unloved but welcome" S&P 500 SPX, 0.17%rally over the past two months was unlikely to persist.

    The S&P 500 has rebounded more than 35% since its Mar. 23 low and now trades 10% below its all-time high. The rally, after stocks plunged 34% in just 23 trading days, was unloved because investors weren't positioned to take full advantage, but welcome because most investors are structurally long-biased, the analysts, led by David Kostin, said.

    They described it as a "remarkable journey" but said the upward trajectory of U.S. stocks would most likely stop.

    The equity research analyst's year-end target remains 3,000 — slightly lower than the index's 3,044 close on Friday — as "numerous medical, economic and political risks dot the investment landscape."

    If the expected "achievable but optimistic" normalization of the economy is met that would validate the existing market level, rather than push it substantially higher, they concluded.

    In the near-term, the index could move to 3,200 but any bumps in the road to economic reopening or further political risks could send the index to 2,750, they said.

    More...

    https://www.marketwatch.com/story/heres-why-the-unloved-but-welcome-us-stock-market-rally-from-march-lows-wont-last-goldman-says-2020-06-01

    submitted by /u/LightningPlus
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    Rare Earth Metal (REMX) Prospects?

    Posted: 01 Jun 2020 08:09 AM PDT

    Hey all.

    With the US-China tension arising, I have been putting attention in to Rare Earth elements and its etf, REMX. From my research, China controls the market with providing 90% of the supply, hence can be used in potential trading war between US and China. However, I have noticed a continuous bear market for the price of rare earth metals. Can anyone explain the reason for this continuous price decline?

    Any insights on REMX is also appreciated.

    submitted by /u/notyourlee
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    Dividend Stocks

    Posted: 31 May 2020 10:09 PM PDT

    What are some dividend stocks you are holding ? And how much are you making from them ? I'm not new but still learning . I got a free Sirius xm radio stock from robinhood and didn't even realize it was a dividend . Now I'm trying to get some more of them .

    submitted by /u/dolannoodlesauce
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    Is the Bitcoin spike right now due to institutional investment or just buyer sentiment?

    Posted: 01 Jun 2020 04:51 PM PDT

    I know that senate nominee from Utah has been in the news for a couple days, maybe that was enough to break the $10k resistance, but this seems like it might start to make a dash?

    Thoughts?

    submitted by /u/ashyblacktshirt
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    Will you be taking positions on stocks affected by the riots?

    Posted: 01 Jun 2020 05:00 AM PDT

    I'm keeping an eye on a couple stocks that usually get affected by the riots such as $DGLY, $VISL & $CETX. They're all already up drastically in after hours ranging from 40% to 90%. Will you guys be taking positions on these stocks? If so what will they be?

    submitted by /u/TheBoy420
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    Schwab partial shares - Working for anyone else?

    Posted: 01 Jun 2020 08:05 PM PDT

    They were supposed to be enabled with today's app update with S&P500 co's. I understand it's after hours, but has anyone been able to initiate a potential order without getting the "order cannot be placed" message?

    submitted by /u/ElRamenKnight
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    Draftkings DKNG

    Posted: 01 Jun 2020 06:47 PM PDT

    A little unsolicited free opinion for you longs and shorts on DraftKings.

    This is a he biggest bubble I have seen in years. The stock is moving up on air and every analyst I called says "not a chance in hell this valuation is appropriate".....so think about what you are buying....what are you getting for your valuation? A good story you keep telling yourself until the tide goes out and you see that little shrunken pecker of yours hiding under that belly Dunlap, wishing you hadn't had been such a greedy chocha.😂😂. I digress.

    No one and I mean no one knows what a stock will do on a particular day, but but but but.....pump the breaks Karen. Seatbelt that bitch.

    There are two things that have given me MAJOR pause in DKNG and why I sold my long position today and went short @43 and change, I levered in and DCA into the close almost 50k shares, 46,700 because my broker couldn't find them to short.

    1. If you believe in the price action of DraftKings over the last week, then the owners of Draft Kings prior to the unique Initial offering got totally and utterly fucked by the underwriters. Forgot about the exact dollars, the company has gone up over 400% in less than 2 months since become public, it totally fucked the original owners and made a shitload for the underwriters. Our CEO wonder boy Jason Robins got royally ass jammed with no lube, he could have easily raised 2-3 times as much for the companies coffers so the company could expand. No doubt his board of made men will be less than enthusiastic about this amateur hour fuck up. It is nice to leave a little meat on the bone but this is a ass jamming with no lube of epic proportions where he gave away a huge amount of cash with his "pipe" haha sorry had to laugh at that one- with one caveat - if you believe the price movement is real. It's not.

    2. I do not believe the price movement is real, at least from the last $15 bucks or so. $28-$44 is foo foo....Here is why....without getting into the dorky sounding snobbish I know more than you because I ran a hedge fund for nearly a decade - the price movement totally looks like computers pre programmed to buy and sell to each other. Long and short back and forth creating a market with itself, not you.

    Looking at the blocks that sold all day today, it really jumped off the page at me...almost every single trade was a block of 100 that would jump as much as 18-21 cents ....there were hundreds if not thousands of instances where less than a thousand shares on the buy side were able to move the price up over 20 cents....that is Santa Clause unicorn shit and smells very much like a quant fart....what I'm trying to say is this....there are very few real buyers at this level...the shares seem to be the same recycled shares that were churning up all week....if you look at the level two quotes you will see these small block trades and the computers front run your orders and jump in front of your trade and make you chase the price like a grey hound chasing a rabbit....the price action does not look real to me, it looks like the computers colluded to conspire against the shorts and short squeeze the shit out of the bears all weak long.

    Oh what a tangled web we weave when we practice to deceive. Bad computer. Down boy.

    And one more little titbit - my broker had no shares to short and I had them out actively looking long and hard for me.... I am going to hold a strong hand and let this thing ride awhile, it hasn't taken a dose of medicine yet and when it does I think it will fall like that knife you know so well.

    Escalator up, elevator down. 🙋‍♂️.

    Good luck to all and I hope you make millions and retire early and then realize money can't make you happy in any way unless you give it away.

    submitted by /u/BDSM-ULTIMATEALPHA
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    XBC - Clean energy company that has grown by 150.61% past year. They just announced an investment fund (20million) with Fonds de solidarité to increase renewable natural gas production in Québec. What y’all think about it? Yahoo claims it’s a strong buy too, undervalued, fairly or overvalued?

    Posted: 01 Jun 2020 06:29 PM PDT

    Are there any airline stocks that are 'safer' than any others right now?

    Posted: 01 Jun 2020 02:41 PM PDT

    Very amateur investor here. I'm looking to add some airline stock to my tiny portfolio since I have the chance to buy at somewhat of a discount from the pandemic. They had a good bump today, though I know it will be quite a while until air travel picks up to even a semblance of what it was.

    But with all that being said, are any airline stocks particularly more safe than the others at this point in time?

    TIA

    submitted by /u/thedoo2008
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    Help with Options

    Posted: 01 Jun 2020 06:16 PM PDT

    So I've been learning the ins and outs of the market for about two months now and I think I'm ready to learn about options. From what I understand about them, an option is the right to buy 100 shares at a limit price that you set. What I don't understand is the strike price. Also, it seems like options are too good to be true.

    For instance, today I was going to buy an option for Myovant Sciences. The current price at the time was $17 and Robinhood said on the confirmation that if the stock price does not go over $10, the option will expire worthless. However, the price was already $17, so does that mean I can buy and sell the option right away and make a profit? I know I'm missing something but I have no idea what, any help is appreciated!

    submitted by /u/ballislife4328
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    I have a doubt about the influence of risk premiums on the decision of investing

    Posted: 01 Jun 2020 08:55 AM PDT

    Hello everyone, I have a question, at the close of financial markets on Tuesday, May 26, 2020, the risk premium in southern European countries exceeds 100 basis points (131 in Spain, 188 in Italy, etc.). I am no expert but I know that there is a close positive correlation between the market interest rate and the discount rate that companies apply when deciding on their investment projects, which is exactly the impact of the risk premium on the decision to invest or not of private entrepreneurs , from the perspective of the net present value or the IRR?

    submitted by /u/Ibuprofen-wetsuit
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    r/StockMarket June 2020 Stock Picking Contest Spreadsheet is now LIVE!

    Posted: 01 Jun 2020 04:16 AM PDT

    Need help editing TC2000 script

    Posted: 01 Jun 2020 10:31 AM PDT

    I am very new to the world of stock market. I received some TC2000 scripts from a friend butt I am unable to understand what the syntax means. Any help would really be appreciated.

    XAVGC18 > XAVGC50 - I was able to find out that XAVG is EMA but I still cant understand what does the C stand for.

    O1 >= XAVGC18.1 AND

    O2 >= XAVGC18.2 AND

    C1 >= XAVGC18.1 AND

    C2 >= XAVGC18.2 AND

    L1 <= XAVGC18.1 AND - I don't know what things like O1,O2,C1,C2 and L1 mean

    H2 < H3 AND

    L2 > L3 AND

    L1 <= L3 AND

    O1 > L3 AND

    C1 > L3 - Same goes for these syntaxes. I don't know what they
    stand for

    submitted by /u/shreyashkalushte
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    Commodity Futures - Too Good To Be True?

    Posted: 01 Jun 2020 06:22 AM PDT

    Is it just me or are some of the commodity futures looking too good with 50% plus gains to get back to pre-coronavirus levels or is there something I am missing?

    Futures such as gasoline, low sulphur gasoil, live cattle and cotton all look like they are viable investments with potential stellar gains when leverage is factored in. Is there something that I am missing?

    Thank you!

    submitted by /u/Delta_Analytics
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    Watchlist: 6/1 The Second Spike

    Posted: 01 Jun 2020 04:08 AM PDT

    Market Notes:

    Last week ended on a positive note as Trump's press conference was not very tough on China as many had feared.

    The weekend was full of unrest in the US. International markets don't seem too concerned. Futures are a little choppy, looking to open near flat.

    While we have dealt with riots in the US before it is new to have them during a pandemic. I think the chances of a second spike of COVID-19 cases are more likely now as social distancing appears to have been completely disregarded by many different parts of our society.

    Watchlist:

    GMBL is a low float, resistance at $9.75

    ALT is a low float, resistance at $10

    MLND is a low float, resistance at $2.77

    ALRN is a lowish float, support at $1.60

    STKL has resistance at $5

    AMRS has resistance at $4

    MEIP watching for a setup above $3.80

    submitted by /u/tradingforkeeps
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    The stock market isn’t reflecting reality yet, but Citigroup warns that pain and ‘collateral damage’ are on the way

    Posted: 01 Jun 2020 12:30 PM PDT

    'We definitely feel that the markets are way ahead of reality. We really are telling every client to tap the market if they can because we think the pricing now couldn't get any better.'

    That's Manolo Falco, Citigroup's C, 3.09% co-head of investment banking, explaining to the Financial Times why he believes the firm's corporate clients should raise as much cash as possible before the reality of the pandemic sinks in for investors.

    "As the second quarter comes along and we start seeing the pain, and the collateral effects of that," Falco continued, "we think this is going to be much tougher than it looks."

    To his point, last month wasn't so tough, in terms of market performance. The Dow Jones Industrial Average DJIA, 0.41% , S&P 500 SPX, 0.47% , and tech-heavy Nasdaq Composite COMP, 0.74% all closed the books on a strong May on Friday, buoyed by mounting optimism over the easing of lockdowns in the U.S. along with a supportive Federal Reserve.

    This while global economies continue to grapple with historic recessions.

    "Markets are pricing a V [shaped recovery], everyone's coming back to work, and this is going to be fine," Falco told the FT. "I don't think it's going to be that easy quite frankly."

    More...

    https://www.marketwatch.com/story/the-stock-market-isnt-reflecting-reality-yet-warns-citi-investment-banker-2020-05-31

    submitted by /u/LightningPlus
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    Riots affect on stock market?

    Posted: 01 Jun 2020 08:48 AM PDT

    I'm new to investing and was just about to start since covid-19 lowered prices.

    However, with the protests and riots now, what are your opinions on how the stock market will be affected?

    I imagine companies that focus on retail stores would be affected greatly if things continue for ab extended period of time. What about big tech? I can't imagine them being too affected unless the violence reaches their offices.


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    McDonald's stock during the riots and inflation.

    Posted: 01 Jun 2020 08:02 AM PDT

    What is McDonald's stock going to do if the riots continue? I figure theres enough McDonald's out there that a few will get hit with rioters and vandalism. You can't get any more mainstreet then McDonald's. Yet we do have inflation and I do think that's what all the hype is all about when the market is going up but it's a false media narrative. Right now I trust gold is so much better than stocks. We have gone 6 months in the year 2020 yet I cant find any reason to be in this market unless you are day trading or going short. That being said there are few gems like gun manufacturers.

    submitted by /u/Mouse1701
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    Any advice for a new investor

    Posted: 01 Jun 2020 04:14 AM PDT

    I've recently opened up a new investing account. I currently have some stocks that are looking good long term but I'm looking to start making more short term trades to bring in a bit more money. Any advice?

    submitted by /u/jakedoesntsharefood
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    Is there a reason GAN doesn't appear on wealthsimple?

    Posted: 01 Jun 2020 07:35 AM PDT

    It meets all of the criteria to be able to trade it on wealthsimple and yet it will not pop up when I search it.

    Has anyone been able to trade it on wealthsimple?

    submitted by /u/Vote_CE
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    Let's Talk About Mortgage REITs

    Posted: 01 Jun 2020 07:23 AM PDT

    I recently added $REML to my portfolio, which is a mortgage REIT. I didn't buy a ton, because I do recognize that this is a high risk purchase and tend to be opposed to buying large funds with high risk, but honestly I am curious as to why more people are not jumping on REIT's like REML.

    This ETF is currently sitting almost 90% lower than when it crashed in Febuary. REML specifically is sitting at $3.12 a share (as I am writing this) and has historically for the last 5 years sat around the $25/share mark.

    Here is the kicker, $REML has an annual dividend return of $3.69/share and in the last 3 years has been $4-5/share. This is more than a 100% dividend annual average return per share than the current share sale price. Obviously there is high chance that some of these mortgage companies that make up this loan portfolio will default on their loan, but even so, I feel like the dividends alone are a reason to consider this or other REIT like this one that are deeply discounted.

    Note: I am in no way endorsing this specific equity/ETF/Fund or any other REIT. Do your own research and come to your own conclusion.

    submitted by /u/paul092834
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    I had a call on Tesla that suddenly plummeted even though the stock was going up, what happened?

    Posted: 01 Jun 2020 07:16 AM PDT

    I bought a 6/5 $1080 call on Tesla about 20 minutes ago. I was planning on selling after an hour. I watched the price slowly increase and my call increase then suddenly it started plummeting within seconds as I watched it. It lost 25% by the time I hit sell. Why on Earth would it plummet like this even though the price was going up? It couldn't have been time decay because I thought that was only factored on the next trading day?

    submitted by /u/lizeskiman97
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    When will the second crash happen?

    Posted: 01 Jun 2020 10:54 AM PDT

    I've been seeing a lot of people theorize that the stock market will crash again before the the year is up. For anyone who believes this theory, any idea of exactly when that will happen? And do you think it will be worse then the first crash in March?

    submitted by /u/lizardboi08
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    Stock Loan Rebate Question

    Posted: 01 Jun 2020 12:01 AM PDT

    https://www.investopedia.com/terms/s/stock-loan-rebate.asp

    For Investopedia's example at the end, who gets the 0.7% rebate and where is the broker (lender) getting the 1M in stock to lend to the hedge fund and does the entity owning the 1M in stock get compensated?

    submitted by /u/nkjd
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