Weekly Issue: As trade concerns escalate, investors brace for an expectations reset

Weekly Issue: As trade concerns escalate, investors brace for an expectations reset

The market has embraced a new round of uncertainty as US-China trade took a route few were expecting just a few weeks ago. New rounds of tariffs have amped up trade talk tensions while leading investors to once again question growth expectations for the economy and earnings.

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Weekly Issue: Looking to Avoid the Dead Cat Bounce

Weekly Issue: Looking to Avoid the Dead Cat Bounce

The market has embraced a new round of uncertainty as US-China trade took a route few were expecting just a few weeks ago. New rounds of tariffs have amped up trade talk tensions while leading investors to once again question growth expectations for the economy and earnings. We’ll continue to focus on our thematic investing lens, the same one that led us to add Axon Enterprises to the leaderboard and its shares are up nearly 50% year to date even after the recent sell off. We discuss why we remain bullish and share what’s next to watch for Amazon and Costco Wholesale. From an options perspective, sitting on the sidelines has proven a smart move as we saw the market swing sharply the last few days. Let’s avoid a potential dead cat bounce and wait for the market to find its footing before making our next trade, potentially one in retail.

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Doubling Down on Digital Infrastructure Thematic Leader

Doubling Down on Digital Infrastructure Thematic Leader

Last week’s economic data confirms the global economy continues to slow, and for now, the US remains the best economy on the block. Through the first two months of 2019, the domestic stock market has been on fire even as earnings expectations and dividends continue to be cut. As earnings season fades, time to watch insider selling activity to gauge what lies ahead. Following last week’s earnings report and subsequent drop, we’re doubling down on a Digital Infrastructure Thematic Leader.

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Adding two Middle-class Squeeze call option positions ahead of earnings this week

Adding two Middle-class Squeeze call option positions ahead of earnings this week

Last week’s economic data confirms the global economy continues to slow, and for now, the US remains the best economy on the block. Through the first two months of 2019, the domestic stock market has been on fire even as earnings expectations and dividends continue to be cut. As earnings season fades, time to watch insider selling activity to gauge what lies ahead. Following last week’s earnings report and subsequent drop, we’re doubling down on Dycom Industries (DY) shares, and later this week Costco Wholesale (COST) reports. Ahead of those earnings, we’re adding a call option position on COST shares as well as one on Ross Stores (ROST) ones – both are positioned to benefit given the pressures sapping consumer spending power.

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Off-price retailers – another thorn in the side of department stores

Off-price retailers – another thorn in the side of department stores

A new report from Moody’s reinforces the negativity surrounding department stores like Macy’s (M), JC Penny (JCP) and Nordstrom (JWN). Unlike most that focus on the shift to digital commerce that is part of our Connected Society theme, Moody’s adds a perspective that meshes extremely well with our Cash-Strapped Consumer and Rise & Fall of the […]

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