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    Stocks - r/Stocks Daily Discussion & Fundamentals Friday May 28, 2021

    May 28, 2021

    Stocks - r/Stocks Daily Discussion & Fundamentals Friday May 28, 2021

    r/Stocks Daily Discussion & Fundamentals Friday May 28, 2021

    Posted: 28 May 2021 02:30 AM PDT

    This is the daily discussion, so anything stocks related is fine, but the theme for today is on fundamentals, but if fundamentals aren't your thing then just ignore the theme and/or post your arguments against fundamentals here and not in the current post.

    Some helpful day to day links, including news:

    Most fundamentals are updated every 3 months due to the fact that corporations release earnings reports every quarter, so traders are always speculating at what those earnings will say, and investors may change the size of their holdings based on those reports. Expect a lot of volatility around earnings, but it usually doesn't matter if you're holding long term, but keep in mind the importance of earnings reports because a trend of declining earnings or a decline in some other fundamental will drive the stock down over the long term as well.

    See the following word cloud and click through for the wiki:

    Market Cap - Shares Outstanding - Volume - Dividend - EPS - P/E Ratio - EPS Q/Q - PEG - Sales Q/Q - Return on Assets (ROA) - Return on Equity (ROE) - BETA - SMA - quarterly earnings

    If you have a basic question, for example "what is EBITDA," then google "investopedia EBITDA" and click the Investopedia article on it; do this for everything until you have a more in depth question or just want to share what you learned.

    Useful links:

    See our past daily discussions here. Also links for: Technicals Tuesday, Options Trading Thursday, and Fundamentals Friday.

    submitted by /u/AutoModerator
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    Palantir (PLTR) Awarded $111 Million Contract to Provide Mission Command Platform for the U.S. Special Ops Command

    Posted: 28 May 2021 04:47 AM PDT

    Palantir Technologies Inc. said it has been selected by the U.S. Special Operations Command to continue its work as their enterprise data management and AI-enabled mission command platform as part of the Mission Command System/Common Operational Picture program.

    The company said the contract is valued at a total of $111 million, inclusive of options, with $52.5 million executed upon award. The total contract includes a base year and one option year.

    Palantir shares were up 3% to $23.29 in premarket trading

    https://www.businesswire.com/news/home/20210528005069/en/Palantir-Awarded-111m-Contract-to-Provide-Mission-Command-Platform-for-the-United-States-Special-Operations-Command

    submitted by /u/FormalExperience
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    I made 17.28$ in two weeks.

    Posted: 28 May 2021 10:41 AM PDT

    Hello r/stocks

    I'm a grown ass man that knows essentially nothing about finances despite being financially well off. So I decided to learn and blow 200$ on a brokerage app (WS). I figured if I fuck up and mess up I don't care, it's just 200$ and it'll be like going to the casino.

    So I put 200$ in a company that I figured is doing really bad right now but is likely going to be doing better after the pandemic.

    Two weeks later I'm at 217.28$ and that's pretty cool I guess.

    Just wanted to share.

    submitted by /u/Orelio
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    AMC’s Four-Day Surge Slaps Short Sellers With $1.3 Billion Loss

    Posted: 28 May 2021 09:00 AM PDT

    The relentless four-day winning streak in AMC Entertainment Holdings Inc. is drawing even more blood from short sellers.

    The movie theatre's 120% surge so far this week has dealt investors betting against it roughly $1.3 billion in losses, according to financial analytics firm S3 Partners. The stock, which has become a poster child for retail traders using Twitter and Reddit to squeeze short-sellers, soared 36% Thursday to the highest level since May 2017.

    Source: https://www.bloomberg.com/news/articles/2021-05-27/amc-s-four-day-surge-slaps-short-sellers-with-1-3-billion-loss

    submitted by /u/Johnblr
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    Be wary of stock discords

    Posted: 28 May 2021 09:19 AM PDT

    Hello everyone,

    I am posting here since it was removed from r/investing. I apologize to the mods if this is the right content for this sub.

    With the popularity of stock trading at an all-time high, I just wanted to give a small PSA and a note about my experience joining stock trading groups on discord.

    Long story short, I have searched around a few different discords to join a community I could learn more about stocks and trading. I can say without a doubt, that the vast majority of them have the following scheme attached to it:

    1. Are pump and dumps where the admin, claiming to be an expert, will post a daily watchlist to encourage people to buy into stocks they already have a position in.
    2. Are setup to convince people they need to subscribe to daily video and "secret advice" in order to make a quick buck.

    Some of the people that run these discords are competent and I can see use manipulation tactics to come off as an authority on subject matters and encourage group think to forward the two objectives above. If you understand and learn the fundamentals of investing, you can tell they lack substance, but people green to investing can easily be enticed.

    Be careful and research into communities you plan on joining. A few common red flags of toxic stock discords I have found include:

    1. Stocks recommendations that constantly change on a daily basis.
    2. Cult-like praise for public figures like Elon Musk.
    3. Using words and tactics to encourage group-think (Such as "stock fam" and encouraging the posting of daily profits).
    4. Due diligence that amounts to "This company looks dope, they have a cool product," or "Their product is the future" without providing any knowledge of fundamentals, such as finance and balance sheet.

    This may sound silly, but there are people out there who are looking to capitalize hard on this craze. Some will come off as smart and can be charismatic. If you haven't read into the fundamentals of finance and investing, their advice looks very enticing.

    If you are looking for a community to join, be careful and always scrutinize people's suggestions.

    submitted by /u/donemessedup123
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    Accounting 101 - Part 3: The Cash Flow Statement

    Posted: 28 May 2021 05:06 AM PDT

    Hey everyone, here's part 3 of the series.

    In case you missed anything, here are the other parts:

    Part 1: The Income Statement - https://www.reddit.com/r/stocks/comments/nlhcci/accounting_101_part_1_the_income_statement/

    Part 2: The Balance Sheet - https://www.reddit.com/r/stocks/comments/nm4kla/accounting_101_part_2_the_balance_sheet/

    This entire series is made up of information I have found online, it is not original nor my own work. I am not an expert and I much prefer relying on the work of respected voices in finance.

    95% of it is taken word for word from Prof. Aswath Damodoran's lecture slides that he makes available for free. He teaches at NYU and has an amazing Youtube channel with full courses on various aspects of corporate finance. I have also sprinkled in some additional information from other sources like Harvard Business School and others.

    The Cash Flow Statement

    The main objective of the Cash Flow Statement (or Statement of Cash Flows) is to explain how much and why the cash balance of a business changed during the period of analysis.

    The cash flow statement is typically broken into three sections:

    • Operating activities
      • Detail cash flow that's generated once the company delivers its regular goods or services, and includes both revenue and expenses.
    • Investing activities
      • Include cash flow from purchasing or selling assets—think physical property, such as real estate or vehicles, and non-physical property, like patents—using free cash, not debt.
    • Financing activities
      • Detail cash flow from both debt and equity financing.

    Based on the cash flow statement, you can see how much cash different types of activities generate, then make business decisions based on your analysis of financial statements.Ideally, a company's cash from operating income should routinely exceed its net income, because a positive cash flow speaks to a company's ability to remain solvent and grow its operations.It's important to note that cash flow is different from profit, which is why a cash flow statement is often interpreted together with other financial documents, such as a balance sheet and income statement.

    However, you will also find other information:

    • How much cash earnings the company had during the period, as contrasted with accrual earnings (in income statements)
    • How much and where the company reinvested cash during the period to sustain and grow its business
    • How much cash it raised from or returned to its debt and equity investors

    The Cash Flow Statement preserves the signs on cash flows, with negative cash flows shown as minuses and positive cash flows as pluses. It also looks at cash flows through the eyes of equity investors in the company.

    Positive cash flow

    • Indicates that a company has more money flowing into the business than out of it over a specified period. This is an ideal situation to be in because having an excess of cash allows the company to reinvest in itself and its shareholders, settle debt payments, and find new ways to grow the business.
    • Positive cash flow does not necessarily translate to profit, however. Your business can be profitable without being cash flow-positive, and you can have positive cash flow without actually making a profit.

    Negative cash flow

    • Having negative cash flow means your cash outflow is higher than your cash inflow during a period, but it doesn't necessarily mean profit is lost. Instead, negative cash flow may be caused by expenditure and income mismatch, which should be addressed as soon as possible.
    • Negative cash flow may also be caused by a company's decision to expand the business and invest in future growth, so it's important to analyze changes in cash flow from one period to another, which can indicate how a company is performing overall.

    No images allowed on the sub, so here's a link: https://imgur.com/nweKg90

    Cash Flows from Operations

    No images allowed on the sub, so here's a link: https://imgur.com/GEBa8Zy

    Working Capital

    Embedded in the cash flow from operations is the change in working capital items, excluding cash

    • Non-cash Working capital = Non-cash current assets – Non-debt current liabilities
    • An increase in non-cash working capital will decrease cash flows, whereas a decrease in non-cash working capital will increase cash flows.

    Non-cash working capital ties up cash and capital, a firm with higher needs for that working capital will have lower cash flows from operations, for any given level of net income, than a firm with lower needs.

    Cash Flows from Investing

    No images allowed on the sub, so here's a link: https://imgur.com/TYgP2y8

    Operating or Non-operating Assets

    • The investing activities section includes investments in both operating and non-operating assets, except for investment in liquid, close to riskless securities, which is treated as cash & marketable securities.
    • The investments into operating assets, whether internal (capex, net of divestitures) or external (acquisitions of other companies) are the engine that drives growth in the operating line items (revenues, operating income etc.)

    Note that acquisitions funded with stock will not show up here for obvious reasons.

    • The investments into non-operating assets create a separate source of value, where the payoff will not show up in the operating line items but below the operating income line, as income from cross holdings or securities.

    Cash Flows from Financing

    No images allowed on the sub, so here's a link: https://imgur.com/JqZv2kY

    Debt Cash Flows

    • While interest expenses show up in the operating cash flow section, by reducing net income and showing up in deferred taxes, debt repayments are part of the financing section.
    • To the extent that some or all of these debt repayments are funded with debt issuance's, the net effect on cash flows can be neutralized or become positive.

    If total debt increases during a period, it will represent a cash inflow, and if it decreases, it will be a cash outflow. Companies that embark on plans to bring their debt down (up) over time should therefore expect these consequences.

    Dividends and Buybacks

    • Until the 1980s, the only cash flow that was received by equity investors in publicly traded companies was dividends. The effect of paying dividends is simple: it reduces the cash balance of the company and increases the cash in the pockets of every shareholder who receives dividends.
    • Starting in the 1980s, US companies have returned increasing amounts to their shareholders in the form of buybacks.
      • The effect of buying back stock is exactly the same as paying dividends, to the company, with cash leaving the company.
      • For shareholders, though, the cash flow effect is disparate. Those shareholders who sell their shares back get cash from the company, and those that do not get no cash, but get a larger share of the equity left in the company.
      • Both dividends and buybacks reduce shareholder equity on the balance sheet.

    Potential Dividends (Free Cash Flow to Equity)

    No images allowed on the sub, so here's a link: https://imgur.com/SLOXVS3

    submitted by /u/oldworlds
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    SPCE - next week in new exchange

    Posted: 28 May 2021 07:42 AM PDT

    I'll keep it simple. As of now the only way Russians can buy spce is from the St Petersburg exchange. St Petersburg is known to buy company stocks and re-sell them without the permission of the company…

    April 2018: "Under Russian securities laws, a Russian stock exchange can unilaterally admit foreign securities to trading without the consent of the issuer of such securities. In the last several years, the St. Petersburg Stock Exchange admitted securities of a number of foreign companies to trading in a similar fashion."

    So big investors don't trade there for that reason.. they could be forced to sell their shares, and when they buy shares they have to pay "extra" on them. Our Russian friends always complain about the stock price, when they try to buy we post one number… they see another "higher to buy" lower to sell etc… because of a "delay".

    Anyways, if you noticed during the flight many Russian investors attended the after party of SPCE. Then days later SPCE announced they'll officially list in the Moscow exchange.

    Is this a coincidence? No. Russian investors are interested in this company, next week we will see "fresh" money buying shares and holding them.

    We will see a difference, just watch!

    submitted by /u/PennyStockWorth
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    I recently sold everything.

    Posted: 28 May 2021 01:48 PM PDT

    AMC, GME, all my tech, all my pharmaceuticals, everything... I sold either at a profit or break even.

    Why?

    Well I started on a path to reach $25,000 in tradables so that I could pattern day trade. I reached that goal and made it to $32,000. Took about a year and a half.

    But then all of these "meme-stocks" started coming into play, the market became super volatile, and I realized I don't know as much as I thought I did. When I stated to try to day trade I was really nervous, using all that money while also thinking about my job and my family.

    So I quit...for now...so that I can learn more.

    Just wanted to share and also ask the community what has taught them the most!

    Have a great weekend.

    submitted by /u/Cory0527
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    Get Alerted of High Quality DD Posts

    Posted: 28 May 2021 08:47 AM PDT

    Motivation

    Among the sea of shitposts, memes, gain and loss porn, Wallstreetbets also has some of the best DD I have ever read. From $PRPL, to steel gang, to $GME and beyond, there has been a wealth of incredible DDs on WSB. Unfortunately, there are two issues with DD posted on WSB:

    • It is easy to miss the high quality DD among the memes and shitposts
    • Once a post has reached the front page and gained thousands of upvotes, the ticker being recommended may already have seen the implied vol on call options shoot up enormously. Sometimes, depending on the ticker, the popularity of a DD post may even move the stock price itself.

    Given the wealth of information contained in these DD posts, it would be useful to have an alert system to inform whether a new DD post has been created, and particularly, one that is perceived to be of high enough quality to reach the front page through Reddit's upvote system.

    My Solution: a Python WSB DD scraper and alert system

    I built a Python tool that scrapes WSB every 5 minutes throughout the day and searches through posts which are flaired as "DD" and are 30-35 minutes old. Several pieces of information are extracted from those posts, such as their score, the authors' karma, average comment sentiment, as well as a couple engineered features. This information is stored in a dataframe which contains all the day's DD posts. The user can elect to receive email alerts if one of those DD posts reaches the front page (defined as the top 25 posts when sorted under "Hot"). In addition, the user has the ability to include a model to predict which posts will reach the front page in advance based on the features being scraped. If included, the tool will send email alert when a post is scraped which has a high probability of reaching the front page.

    If interested, you can access the code here: https://github.com/CuriousByNature/WSBFrontPageAlert

    The README has a full set of instructions for executing the code. The repository also comes with a sample model object trained to predict whether posts will reach the front page using only on one of my engineered features. The model is able to make predictions with just under 90% out-of-sample precision.

    I hope you guys enjoy this tool as much as I have!

    submitted by /u/wishful_thinking90
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    What if you bought 1 share each of TOP 50 highest rated stocks from Seeking Alpha today? Let's find out.

    Posted: 27 May 2021 03:12 PM PDT

    https://docs.google.com/spreadsheets/d/14hyGy734pxznA--wL7hHqbOn8Sa6xjq8fNHtL_3XZ4o/edit#gid=0

    In case you want to use the Sheet template for something else, go to File and make a Copy, then you can use it yourself. Don't ask for permission.

    EDIT: Since some have pointed out that it would make more sense to put 100$ in each stock, I updated the sheet and now there is a 100$ investment per company, rather than 1 share per company.

    Those are the 50 highest rated stocks on Seeking Alpha right now. I'm curious how they will perform against S%P over the coming weeks and months. I will not update the list, let's say I bought the share and keeping them 3 - 12 Months. I will post an update once a month, if I don't forget.

    ​

    Additionally I included the stocks that were upgraded today to Bullish or Very Bullish, for comparison.

    I want to see how they perform against the overall market. If I had access to Motley Fool recommendations, Cramer's recommendation and so on, I would have created separated sheet for them. But If you have access, feel free to make a copy of this Sheet and replace the Tickers. Even better if you share it here.

    submitted by /u/Looddak
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    Would buying exclusively AMZN, GOOG, MSFT, and AAPL be a terrible idea?

    Posted: 28 May 2021 10:19 AM PDT

    I'm currently invested in VGT (80%) and VTI (20%) and I'm thinking of liquidating my positions and opening poisitions with AMZN, GOOG, MSFT, and AAPL exclusively. Still haven't decided the weights of each within the portfolio, although I'd probably do something like 30% AMZN, 30% AAPL, 25% MSFT, 15% GOOG.

    I work in tech and see those four companies as money printers for the foreseeable future, so I'd rather have positions with them than most of VGT or VTI, although people much smarter than me say that's a big investment no-no.

    Thoughts?

    submitted by /u/686f6c69
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    where to invest if they'd rise interest rates?

    Posted: 28 May 2021 07:48 AM PDT

    The interest rate is defined as the proportion of an amount loaned which a lender charges as interest to the borrower, normally expressed as an annual percentage. It is the rate a bank or other lender charges to borrow its money, or the rate a bank pays its savers for keeping money in an account

    If they rise them to fight inflation

    where to invest if they'd rise interest rates? Gold? Food stocks? Silver?

    submitted by /u/luchins
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    An app to follow company updates, anyone know of one to follow?

    Posted: 28 May 2021 11:26 AM PDT

    Hi,

    Looking for an app where you can select particular companies and basically it gives a run off of what that business is doing:

    So it could say when these events are such as

    Earnings Q4 Release of new product CEO presentation

    Things like that really. A way of following the businesses within your portfolio without having to add certain events to a notepad and sometimes miss earnings calls or valuable presentations. An easy way to do DD basically.

    submitted by /u/Maximum-Fudge6438
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    Costco had record breaking sales last quarter but not good enough for wall street as it's down 2%. Here is something that makes me bullish

    Posted: 28 May 2021 10:58 AM PDT

    Costco last year entered China. They have one store in Shanghai. That one store achieved 400,000 memberships in a year. They have plans to add stores in China,two more in the next year. Taiwan and Japan have shown the locals there love Costco as much as in North America.

    submitted by /u/LegendLarrynumero1
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    KoyFin.com - Market analysis website

    Posted: 28 May 2021 01:41 PM PDT

    This website is amazing - no doubt many of you have already seen this, but if you haven't, I suggest a look. It's free, and may be one of the best designed websites I've ever seen. You'll still be finding utility you hadn't seen months from now. 10/10.

    submitted by /u/MooMF
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    TTD or NVDA which one is better

    Posted: 28 May 2021 01:39 PM PDT

    I'm sure you know those two has stock splits. But TTD has more stocks if it's divided rather than NVD. I have money that can buy 10 stocks on either of those stocks. My question is, should i divide my money and buy half of those two stocks or should i buy the stocks that has more upside after 10 years?

    submitted by /u/killahbeast
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    Fords 15.00s to 14.50s day

    Posted: 28 May 2021 01:36 PM PDT

    Salutations,

    What's the consensus on Ford? I'm wondering on the huge drop between pre market and the rest of the trading day. Seems a huge pre market run up and then sell off.

    Opinions on a mid 15 run up next week or is Ford in for a further dive. Any technical opinions greatly appreciated

    submitted by /u/INIT456
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    Do you see any good stock on that list?

    Posted: 28 May 2021 10:49 AM PDT

    https://dividendmanager.wordpress.com/top-100-dividend-stocks-ranking/

    ​

    All of them are overvalued right now. The only ones that might be worth buying are VZ and T. Is there a list that only includes dividend stocks that have dipped recently or far away from their all-time highs? Almost every website recommend you to buy stocks that have already peaked, and that's probably the worst way to beat the S&P 500. The only way to beat the S&P 500 is to find deep value and buying at the right time.

    submitted by /u/seacobs
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    r/Stocks Discuss Overlooked Stocks Friday - May 28, 2021

    Posted: 28 May 2021 09:00 AM PDT

    It's lunchtime, Wall St time; time to discuss overlooked stocks that no one is talking about: Overlooked & possibly undervalued stocks.

    All the rules of r/Stocks still apply, so please see the sidebar or click here.

    But here's the twist you can't bring up meme stocks that have been hotly discussed in the past several weeks. Those stocks that everyone has been talking about, you can't bring up here or they'll be autoremoved. Why? It's to keep this thread pure & focused.

    The current list of meme stocks can be found here. So don't mention these stocks in this post or your comment will be removed.

    Need ideas on which stocks to discuss, try a screener like this one.

    Important links:

    After discussing your stock here, feel free to create a post on r/Stocks with all the information you might have just learned.

    Thanks & enjoy!

    submitted by /u/AutoModerator
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    Largest ever insider selling on CVNA

    Posted: 28 May 2021 09:52 AM PDT

    https://www.nasdaq.com/articles/should-you-review-recent-insider-transactions-at-carvana-co.-nyse%3Acvna-2021-05-28

    With the pandemic winding down and no moat inviting constant competition from Vroom, KMax, Hertz, etc. now CVNA is about to take the hit of people returning to dealerships. Throughout the whole pandemic that they sold as a driving force for app based cars salesmen they did not enhance their profitability at all. Now the insiders are getting out it looks like a light breeze could blow down the house of cards.

    submitted by /u/IWorkForScoopsAhoy
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    Lessons from an emotional investor/trader

    Posted: 28 May 2021 05:04 AM PDT

    This is a reminder to all emotional investors/traders out there: Don't panic sell!

    I made a bunch of stupid moves the week of May 10 when the market was taking its second downturn. If I just walked way from my computer for 2 weeks, most of the moves I made would have recovered. But unstead now I'm sitting on missed gains because I got too emotional.

    Investing/trading is not about emotion. It's about having a plan and sticking to it.

    I'm terrible at it because I still panic when macro factors test the strength of my plan.

    Here are some of the lessons I'd like new traders/investors to really take to heart:

    • When you buy a stock, have a VERY clear idea on why you bought, how long you're holding, and what your exit strategy is. I cannot stress this enough. There are many times where I bought a stock to flip, and I ended up holding it long term as a bag holder because I got greedy. And there are many times I bought stock I believed in, but ended up selling it on a correction because I panicked. Be incredibly regimented about this.

    • Understand that corrections occur, and make a plan on how you'll deal with it. If you started buying high growth/beta stocks in January or February, you're account is probably down 20% from its peak. Thats okay, take a DEEP breath and think through your strategy. Did you leave any money to DCA your positions down? Ex. You bought ENPH at $220, its $140 right now. Do you still believe in ENPH? Why did you buy it at $220 and what has fundamentally changed about the company now that its at $140?

    • Understand the power of averaging down.You can't time tops or bottoms. But you can make a strategy to mitigate risks. If any stocks you own have a beta higher than 2, seriously consider making an average down strategy. Averaging down is a very powerful tool, but you need to plan ahead for it. Stocks are great if they're only going up, but any high growth stock will come back down on small catalysts that throws into jeopardy their future growth. Those things can be macro factors as well such as interest rates and inflation fears. Here's a simple example using NIO. NIO was trading at $64 on January 20 after NIO day. There were definitely people who bought NIO at that price. Lets assume you bought 100 shares of NIO for $6400. NIO since then has been on a brutal slide. Its found its bottom at $31 twice now, but its still unclear what the real bottom is. At the same time, more analysts have reiterated that NIO is a buy with a price target of about $60. So your cost average is $64 with a 100 shares. NIO is sitting at $38 today. You know there's a 20% downside to $31, and maybe it goes lower. But you also know that it has a potential upside to $64. The reality is, if you believe in NIO, and were proactive enough to have $6400 stored in case of an event like this, if you bought 168 shares of NIO for $38, and averaged down your position you're cost average for NIO become a much more reasonable $47 rather than $64. That means NIO only has to gain 20% from its current price rather than 80%. I've seen this written in this subreddit before, but averaging down on a position is one the greatest opportunities. It lets you recommit to the original thesis you had for a stock, and it also creates a more advantageous position in the long term.

    That said, be careful of "buy the dip". Understand why the dip is occurring. Compare the dip to macro factors like SPY and QQQ. Understand interest rates, inflation, international trade deals and other factors that could affect macro price movement. Use TA to understand support levels, and always be aware that things could drop more. April and May really tested the theory of "it can't go any lower". I was reading on this forum that April 27 was the end. That everything was going to recover since high flying stocks were on their bullish trajectory. Then we hit an inflation panic and the market corrected all high growth stocks by about 20%. OUCH.

    Here's my big mistake. When I had no extra money to average down, and the stocks kept falling in May, I panicked. I managed to make it through February and March and most of April without panicking and selling. But May did me in. I ended up selling stocks to preserve capital, and most of those stocks are rebounding now and its making me realize that I wasn't as mentally strong as I thought.

    Don't make these mistakes I did. Please make a strategy for yourself and stick with it! And don't keep changing strategies on a whim. That's another thing that will lead to compounding losses rather than tweaking and honing your strategy for what works for you!

    submitted by /u/radarbot
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    Major indices and all sectors are green on a day like today?

    Posted: 28 May 2021 12:02 PM PDT

    So we are starting a long weekend, and yet the market is bullish af and couldnt be working against VIX better. Absolutely contrary to what some articles were saying.

    So, could this be a good sign that we are very likely to start the first day of June super bullish? I would think that people would cash out today to get ready to rebalance for the next month if the prevailing sentiment and volatility werent like this right now.

    submitted by /u/I_whip_idiots
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    Here is a Market Recap for today Friday, May 28, 2021

    Posted: 28 May 2021 01:54 PM PDT

    PsychoMarket Recap - Friday, May 28, 2021

    Stocks gained on Friday, with market participants encouraged by new economic data on consumer spending, income and inflation, and a strong Weekly unemployment report. The market has made a remarkable recovery, particularly in technology, after the market tumbled 4% following the April Consumer Price Index roughly two weeks ago. In my view, as I have said for weeks, the recovery in the market confirms that the initial sell-off driven by inflationary fears forcing the Federal Reserve to tighten monetary policy sooner than expected was overblown.

    New government data on Friday showed personal income fell less than expected in April, but still pulled back after March's stimulus-fueled surge. Personal income fell by 13.1% in April compared to March, less than the 14.2% drop expected. This follows a 20.9% increase during March which had been buoyed by the distribution of $1,400 stimulus checks to most Americans.

    In another report, the Department of Commerce reported core personal consumption expenditures increased 3.1% in April from a year earlier, blowing past the Fed's traditional 2% target. Federal Reserve members consider the core PCE to be the gauge of inflation. The strong inflation readings reported by the Commerce Department on Friday had been widely anticipated as the pandemic's grip eases, thanks to vaccinations, and will have no impact on monetary policy. Fed Chair Jerome Powell has repeatedly stated that higher inflation will be transitory. Supply-chain constraints combined, labor shortages in certain industries, and rising demand as the US economy recovers from the coronavirus-induced recession have all contributed to higher inflationary readings. These are all factors that are widely considered transitory, meaning not permanent. In an April 28 statement, Federal Reserve Chair Jerome Powell said, "An episode of one-time price increases as the economy reopens is not likely to lead to persistent year-over-year inflation into the future. Clogged supply-chains won't affect Federal Reserve policy because they're temporary and expected to resolve themselves." Moreover, he said "For inflation to move up in a persistent way that moves expectations up, that would take some time, and you would think it would be likely we would be in very strong employment for that to happen." In other words, Powell is saying he expects issues driving inflation higher to resolve themselves moving forward and doesn't expect inflationary pressures to materialize until the labor market further improves.

    In remarks this week, members of the Federal Open Market Committee (FOMC), reiterated their stance that they were not yet concerned that new inflation data would force the Fed to tighten monetary policy sooner than expected. St. Louis Federal Reserve President James Bullard said he believed increases in inflation would be "mostly temporary" and that the Fed was "not quite there yet" when it came to discussing tapering its asset purchase program. In separate comments, Kansas City Federal Reserve President Esther George said she did not want the Fed to be "overly reliant on historical relationships and dynamics in judging the outlook for inflation."

    Richard Clarida, Vice Chairman of the Fed, offered a slightly different view but one that is in-line with what the Federal Reserve has already said publicly in the past. Clarida said, "there will come a time in upcoming meetings" when the Fed would consider tapering the asset purchase program but that "it is going to depend on the flow of data". The Fed is currently buying $120 billion a month in government-issued and government-backed securities, and has pledged to continue doing that until the economy is more fully recovered.

    This reaffirms the market that the Fed is not on a set timeline when it comes to rolling back current accommodative policies and will, as they have said time and again, wait for concrete data before any considerations are made. This follows a similar statement from Jerome Powell back in April 14, which proves market participants shouldn't worry about quantitative easing tapering, in my opinion. Powell said, "We will reach the time at which we will taper asset purchases when we have made substantial further progress towards our goals from last December. That would in all likelihood be before, well before, the time we would consider raising interest rates. We have not voted on that order but that is the sense of the guidance."

    The Department of Labor's Weekly Unemployment Report showed jobless claims fell for the fourth straight week to yet another pandemic-era low, an encouraging sign that the labor market is improving following the extremely disappointing April Jobs report, which showed 266,000 new jobs added in the month, far below estimated of more than 1 million and a sharp deceleration in job growth compared to March.

    • Initial jobless claims, week ended May 22: 406,000 vs. 425,000 expected and 444,000 the week prior
    • Continuing claims, week ended May 15: 3.642 million vs. 3.680 million expected and a revised 3.738 the week prior

    Highlights

    • "Meme-stocks", particularly AMC, were absolutely on fire this week, as the battle between wallstreetbets and hedge funds continues.
    • President Joe Biden unveiled a budget that would hike federal spending to $6 trillion for the coming fiscal year.
    • Boeing (BA) agreed to pay at least $17 million to settle enforcement cases with the Federal Aviation Administration over production issues with its 737 jets. Stock reacted positively to the news.
    • Durable goods orders, or orders for manufactured goods intended to last at least three years, unexpectedly declined in April, ending an 11-month streak of increases, the Commerce Department said Thursday, an encouraging sign.
    • Amazon (AMZN), Microsoft (MSFT) and Alphabet (GOOG, GOOGL) are all involved in a bidding process to provide cloud services to Boeing, according to multiple reports.
    • Disney's (DIS) California-based parks will welcome non-California natives starting June 15.
    • **Please note that current price target was written pre-market and does not reflect intraday changes*\*
    • AutoDesk (ADSK) target raised by Barclays from $335 to $340 at Overweight. Stock currently around $287
    • Burlington Stores (BURL) with a host of target raises. Average price target $365 at Overweight. Stock currently around $325
    • Costco (COST) with three target raises. Stock currently around $388
      • Barclays from $400 to $450
      • Stifel Nicolaus from $390 to $410
      • Telsey Advisory Group from $395 to $415
    • Salesforce (CRM) with three target raises after crushing earnings. Stock currently around $226
      • Mizuho from $270 to $290
      • Barclays from $276 to $285
      • Moness, Crespi & Hardt $275 to $290
    • Dell Technologies (DELL) target raised by Morgan Stanley from $127 to $130 at Overweight. Stock currently around $100
    • Dollar General (DG) target raised by Citigroup from $250 to $260 at Buy. Stock currently around $205
    • Medtronic (MDT) with two target raises. stock currently around $125
      • Deutsche Bank from $134 to $149 at Buy
      • Oppenheimer from $134 to $147 at Outperform
    • Ulta Beauty (ULTA) with a host of target raises after crushing earnings. Average price target $400 at Buy. Stock currently around $328

    "To bear trials with a calm mind robs misfortune of its strength and burden." - Seneca

    submitted by /u/psychotrader00
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    Covered call stocks

    Posted: 28 May 2021 05:27 AM PDT

    Hi

    I've been watching videos on covered call stocks such as $QYLD. this looks very interesting due to high dividend. A lot of the videos I watch say they looks really good. I'm not sure if this is a confirmation bias or they are selling me something.

    submitted by /u/ForeignReviews
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