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February 1, 2022
Use Weakness as an Opportunity Right Now
Weakness is opportunity.
For weeks, we watched the Dow plunge hundreds of points.
All thanks the Federal Reserve, global issues, higher oil prices, and inflation. All of which led to one heck of a disastrous, hair-pulling month.
However, with a good deal of fear now priced into markets, use the weakness an opportunity.
We’d all be foolish not to.
Could we see further pullbacks in the market? Sure.
But I’m guessing most of the fear has been priced in, as weak hands sold.
Plus, if you pull up a two-year chart of the Dow Jones, you can see it just caught triple bottom support after a gut-wrenching month. Even relative strength (RSI), MACD, and Williams’ %R are starting to pivot higher.
Barring any surprises, the Dow could run from 35,151 back to 37,000, near-term.
Better, analysts say 2022 could be impressive.
As noted by The Wall Street Journal, David Kostin, the chief U.S. stock market strategist at Goldman Sachs, says the market will finish the year up 15 percent, as does UBS’ Mark Haefele.
So, where should we invest?
One way is to spot oversold stocks, like Apple (AAPL) and Microsoft (MSFT) – both of which are just starting to pivot higher.
Two, you can trade alongside Options Income Blueprint, for example, which just closed six winning positions, including General Motors (GM), Micron Technology (MU), and Marvell Technology (MRVL), which yielded an annualized rate of return of 115%.
Even more impressive, Options Income Blueprint closed 116 trades in 2021. Of those, just three were losers. Traders who sold just one contract of each booked $7,630 in income for the year. With an average holding time of about 16 days, our average annualized rate of return was 71%.
Three, our Triple Play Income Strategy is showing investors how to trade options against dividend-paying stocks to triple their income. The best part – you can generate income before the dividend is paid, when the dividend is paid, and after the dividend is paid.
All great strategies to use.
Again, we’d use weakness as opportunity. With fear priced into markets, and analysts calling for 15% upside, we’d be foolish not to take full advantage.
If you’re looking for opportunity…
Keep an eye on Beyond Meat (BYND).
Oversold, the plant-based food stock is sizzling.
McDonald’s had just said it was rolling out a test of BYND’s plant-based burgers in 600 stores in Texas. It was also up on news it will release a vegan beef jerky snack as part of its collaboration with PepsiCo. And It was also releasing its chicken alternative at Kentucky Fried Chicken.
Even better, Barclays’ analyst Benjamin Theurer upgraded the BYND stock to an overweight rating, with a price target of $80 a share. “We believe Beyond Meat’s growth potential in the U.S. food service channel and the international segment is not properly reflected in the current stock price,” Theurer said, as quoted by Barron’s.
Also Making Headlines
Consumer Pessimism Grows as Inflation Accelerates
AT&T to spin off Warner Media in $43 billion Discovery media merger, cuts dividend
Worried About the Market’s Next Move? Pay Attention to What Happens in Ukraine.
Skyrocketing Fertilizer Prices Could Spark Widespread Global Famines
Exxon, Chevron Hit Gushers of Cash as Big Oil Companies Lure Back Investors
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