What To Focus On - Part Two

My blog of November 27th was entitled "What to Focus On". Please read it. This week we are feeling a bit of a hangover. Last's weeks triple witching event is over. Stocks that were forced to contract in price to sqeeze out spectatate positions on them are now free to resume there old trading patterns. This Monday morning at 10:20 a.m. the Djia is up 301 points. There are also losers. So now what? Mark on your calendar exactly three months down the road how the markets traded on the first morning after one of these triple witching events and use this same logic to catch the upside on the next "hangeover" day like this. How do you pick the winners? Find a few stocks that have enjoyed a recent upswing and play them to pop on the first trading session after one of these events. This blog is just an observation.

Barron's and Their Comments on the Auto Stocks

1) Telsa. What they are saying is to wait and see if it drops down to $100.00 then buy it. The stock is volatile. U.S. sales of all-electric vehicles grew 45% year over year. Sales of gasoline-powered cars were roughly flat from the fourth to the first quarter, while EV sales climbed roughly 15%. Telsa is still the king of the EV future. 2) G.M. and Ford? Maybe, they say these two stocks should be considered as technology stocks and maybe they warrant higher price/earning ratios. For a decade, their stocks have traded, on average at about seven times estimated next years earnings, while the S&P 500 Index has fetched 18 times. Todays cars require a huge amount of software. G.M. has the Cruise which operates a fleet of self-driving taxis in San Franciso and will apply this driver-assistance system to it's new 2024 Cadillac Celestiq, an ultra-luxury sedan with a likely base price of $300,000. It looks like the big players will survive. All eyes are on Telsa which swings up and down. 3) How is the industry in general doing? Read this.
Will the smaller EV players survive? Will investors continue to have an appetite to support other new upstart electric vehicle players? So many are life support. Here are three other interesting companies in this space to watch.
Now Fisker. Their product offerings look promising and they continue to win design awards.
Can investors make money playing in this space? Well none of these lower tiered companies are making money yet.
But wait. We are still in the first inning. It's all going to be an amazing story to watch going forward. Now wait again. Here is a new story. Fisker jumped 10% in the first 90 minutes of trading this morning and the Calls jumped. Yes there are exciting things happening.
Did you notice the percentage increases in just ninety minutes. I missed it. I was to busy writing this blog!


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