COVID90: 22 more stocks

Just a quick note- today I added an additional 22 stocks to the COVID90 portfolio:

BDX        Becton Dickinson

CDLX      Cardlytics

COHR    Coherent

EB           Eventbrite

ENB        Enbridge

FISV       Fiserv

GSKY     GreenSky

HRC        Hill-Rom

MGNI    Magnite

NEU       NewMarket

PFPT      Proofpoint

PLAB      Photronics

PS           Pluralsight

PSN        Parsons

QMCO  Quantum

SWM     Schweitzer-Mauduit

THS        TreeHouse Foods

TRVG     Trivago

VPG       Vishay

WDC      Western Digital Corp

WRTC    Wrap Tech

YELP       Yelp

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COVID90 initial buy

I’ve been anticipating a Market panic over the COVID 2nd Wave, and assumed that it would precede the election.  It doesn’t look like that’s going to happen. 

I also believe that regardless of the election outcome, Markets will do well because 2021’s astrological forecast is for waning COVID and waxing Stimulus…regardless of who might be President.

There are 90 stocks that I believe present value and should fully recover once COVID fears diminish.  I’ve dubbed them the COVID90. 

Today I purchased these initial 49 positions:

AMRS    Amyris, Inc.

B             Barnes Group

BCO       Brink’s

BDC        Belden

BHC        Bausch Health

C             Citigroup

CARG    CarGurus

CCOI      Cogent

CR           Crane

CRS        Carpenter Tech

CVX        Chevron

CW         Curtiss-Wright

DAKT     Daktronics

DCI         Donaldson

EBIX       Ebix

FLS         Flowserve

FOX        Fox

GD          General Dynamics

GE          General Electric

GRA       W. R. Grace

HAE        Haemonetics

HGV       Hilton Grand Vacations

HLT         Hilton Worldwide

HST        Host Hotels & Resorts

HWM    Howmet Aerospace

HY           Hyster-Yale

INGN     Inogen

IOSP      Innospec

ITGR      Integer


JPM       JPMorgan

KMI        Kinder Morgan

MAR      Marriott

NVST     Envista Holdings

PFGC     Performance Food Group

RL           Ralph Lauren

RTX        Raytheon Tech

RXT        Rackspace

SBNY     Signature Bank

SIX          Six Flags

SNN       Smith & Nephew

SSYS       Stratasys

TDG       TransDigm

TNC        Tennant

TRIP       TripAdvisor

TSE         Trinseo

VLO        Valero

WELL     Welltower


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Market rally fails again…is it going lower?

The S&P 500 is barely holding above a technical correction and it has failed multiple times at the 50 day moving average.   The rotation rally looks like it has fizzled. 

Today was characterized by indiscriminate selling.  Everything was down- Tech, Value, Precious Metals, Bitcoin…everything.

I think the market is headed lower…but I’ve thought that all summer, and have been wrong.

You can hear my latest thoughts at today’s episode of the Wealthsteading Podcast, it’s a quick listen at less than five minutes:

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Markets have been selling off for four straight weeks.

Today the S&P 500 gapped down, but then recovered to close at an intraday high, showing that bargain hunters are still active.  So is the selloff over?  I don’t think so.  I’m anticipating more down days as a second wave of COVID crests ahead of the November presidential election drama.

The downturn will likely continue until a second round of stimulus is passed and progress on a vaccine is affirmed.  That could mean heavy volatility and selling extending into October.  Also, if this is a rotation out of overbought Tech stocks and into Value, then the NASDAQ still has further to decline.

For now, I’m remaining patient and not buying this dip. 

You can listen to my latest thoughts in a podcast episode posted this weekend:

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September swoon…how low can it go?

September is normally the most volatile month for the stock market.  Today’s decline is a confirmation of that notorious reputation.  This pullback should come as no surprise, the market has gotten overheated to near levels of irrational exuberance.  Amateur and professional investors alike have been recklessly buying into stocks with nonsensical valuations- Tesla, Zoom and Peloton to name only a few.

So how low can it go?  I have no idea.  Those that attempt to accurately pinpoint stock movements are either deluding themselves or lying to you.  At best we can only assess probabilities.

I haven’t purchased this dip, yet.  For now, I’m holding out to see if the retreat approaches a technical correction of near 10%, with the S&P500 around 3200. 

[ NOTE:  Before today’s drop, over half of S&P500 stocks have been in a technical correction.  The recovery has been extremely bifurcated.  Many stocks still qualify as a “value” play.  Listen to the latest podcast episode for more details-    ]

I don’t know if I’ll have the patience to wait for a 15% drop, roughly 3000.  At that level, the S&P500 would rest at “fair value” given estimated earnings for next year.  I would consider that an excellent long term entry point.  It’s also probable, given a VIX above 30 and election uncertainly. 

The panic of a flu season induced COVID 2nd wave could result in a 20% correction.   [ see chart ]

So…my advice is assess the probabilities, pick a value that you’re comfortable with, and if the drawdown materializes, buy the dip.  I remain optimistic that after the election, regardless of the winner, the markets will rally into 2021…driven by low interest rates, easy FED monetary policy, continued stimulus, and benign corporate profit targets.

HEY, if you missed my recent short format YouTube videos, please check them out:

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