Dissecting This Weeks S&P 500 Earnings

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Midas Letter

The Digital Businesss Channel for Cannabis, Crypto and Technology Stocks.

Midas Letter is provided as a source of information only, and is in no way to be construed as investment advice. James West, the author and publisher of the Midas Letter, is not authorized to provide investor advice, and provides this information only to readers who are interested in knowing what he is investing in and how he reaches such decisions.

Investing in emerging public companies involves a high degree of risk and investors in such companies could lose all their money. Always consult a duly accredited investment professional in your jurisdiction prior to making any investment decision.

Midas Letter occasionally accepts fees for advertising and sponsorship from public companies featured on this site. James West and/or Midas Letter may also receive compensation from companies affiliated with companies featured on this site. James West and/or Midas Letter also invests in companies on this site and so readers should view all information on this site as biased.

Wealthpress Head Trader Roger Scott joined Midas Letter to discuss the earnings results for the 96 S&P 500 Index (INDEXSP:.INX) companies that reported this week.

S&P 500 traded positively today (+1.39%) although down -1.32% from the close of last week. The index traded lower Thursday due to the disappointing news  unfortunately, leaked from Gilead Sciences, Inc. (NASDAQ:GILD). It was suggested their experimental Remdesivir drug trials, which had hopes to be an effective treatment against the COVID-19 virus, has not been successful.

Interestingly and in contrast to a lot of sectors, 80% of stock within the Consumer Staples sector out performed their earnings per share (EPS). Now, we wait until next week to hear from the “Big 5 in tech” : Amazon.com, Inc. (NASDAQ:AMZN), Apple Inc. (NASDAQ:AAPLFacebook, Inc. (NASDAQ:FB), Google (Alphabet Inc) (NASDAQ:GOOG) (NASDAQ:GOOGL) and Microsoft Corporation (NASDAQ:MSFT).

Traders predicted the economy would be hit hard with everything that has taken place over the last couple of months. The pair discuss whether the initial reaction to Coronavirus fears were overly drastic as further economic data is released, interpreted and forecasted. The overall sentiment remains whether or not the market movement to such news is in fact scarier than the original fear itself.

There are 3 trading strategies Roger Scott believes are worth pursuing in the current market environment to provide investment opportunities without having to much exposure to negativity volatility:

1) Go bottom-fishing: look for stocks where the price has dropped as of late and are therefore undervalued. The key to this strategy however, is to recognize stocks with the best possibility for upside and prospects of recovery.  This strategy requires patience and is a longer-term play. Take a closer look at the expanding TV services Walt Disney Co (NYSE:DIS) is now providing.

2) Find strength stocks unique to the current Coronavirus situation with in demand products. For example:  Shopify Inc (NYSE:SHOP) and Quest Diagnostics Inc (NYSE:DGX)

3) Non-directional Options strategies especially when volatility is high – making premiums higher (increased profit for less risk). Examples: Iron condor, bear call spreads, bull put spreads.

Midas Letter is provided as a source of information only, and is in no way to be construed as investment advice. James West, the author and publisher of the Midas Letter, is not authorized to provide investor advice, and provides this information only to readers who are interested in knowing what he is investing in and how he reaches such decisions.

Investing in emerging public companies involves a high degree of risk and investors in such companies could lose all their money. Always consult a duly accredited investment professional in your jurisdiction prior to making any investment decision.

Midas Letter occasionally accepts fees for advertising and sponsorship from public companies featured on this site. James West and/or Midas Letter may also receive compensation from companies affiliated with companies featured on this site. James West and/or Midas Letter also invests in companies on this site and so readers should view all information on this site as biased.