Weaker Stocks Will Get Weaker

[] Is Garrett {NAME} agreeing with Jim Cramer on weak stocks? Yes, and it’s going to blow your mind when we look at the 10 worst stocks in the space for investors right now. [View in browser]( . Is Garrett {NAME} agreeing with Jim Cramer on weak stocks? Yes, and it’s going to blow your mind when we look at the 10 worst stocks in the space for investors right now. [View in browser]( . . [] [Havens Investment Letter] [] [Havens Investment Letter] [] [] [] World-class trader spots huge moves on regular stocks (NOT options!) He’s one of the internet’s original day traders... He’s a 12-time World Trading Champion... And for nearly 30 years, he hasn’t needed a day job! That’s because he’s made his living from the markets... spotting huge moves of 30%... 60%...and even 100% on little-known stocks! And now he’s inviting you to learn his system! [Click here to get started for just $9!]( [] --------------------------------------------------------------- [] World-class trader spots huge moves on regular stocks (NOT options!) He’s one of the internet’s original day traders... He’s a 12-time World Trading Champion... And for nearly 30 years, he hasn’t needed a day job! That’s because he’s made his living from the markets... spotting huge moves of 30%... 60%...and even 100% on little-known stocks! And now he’s inviting you to learn his system! [Click here to get started for just $9!]( [] --------------------------------------------------------------- [] [] Weaker Stocks Will Get Weaker [Garrett Pic]Dear Investor, This week, Apple (AAPL) hit a $3 trillion market capitalization. I don't know how to explain this valuation. After all, this is a larger market capitalization than the GDP of all but four nations. Are they going to invite CEO Tim Cook to the next G-7 meeting? This is a stock that sits in a staggering 312 exchange-traded funds (ETFs). But that's not the most incredible statistic about a stock that already represents more than 6.2% of the S&P 500. Check this out. The top 10 stocks on the index have the same total market capitalization as the bottom 412 stocks in the index. This explains how the S&P 500 can continue to rise while the majority of stocks in the index fall. If Apple and Microsoft both rally, their gains can offset the losses of hundreds of stocks. Last year, two personal favorites Devon Energy (DVN) and Marathon Oil (MRO) were the top performing stocks on the index. They will continue to rise if oil prices continue to move higher. But at the bottom of the chain there are a few other stocks. The bottom 10 stocks in the S&P 500 are generating a lot of buzz and interest. I think investors need to be cautious. Let's dig a little under the hood. I Agree With Whom? Last week, Jim Cramer - a man who rarely says sell - took the time to look at the worst 10 performing stocks in the S&P 500. Cramer said that the worst performing 10 stocks on the index will likely continue to underperform. Mr. Cramer has - in so many words - made the case for momentum in the year ahead. As I've noted, strong stocks tend to see stronger prices. This is an anomaly that has drawn academic interest for decades. Momentum as a strategy works. But on the other side, weaker stocks do get weaker. This is negative momentum. So, if we look across the index of stocks that have taken hits, we can see a combination of qualitative and quantitative factors that could lead underperforming stocks lower. Now - before we dive into these stocks, keep something in mind. These stocks will have occasional gains. Short squeezes will trigger. Short-term catalysts will ignite these stocks... But be warned that many people who have lost money on these stocks - which have underperformed - may use any short-term pops to sell and recoup whatever gains possible. The rallies will likely be short lived. Let's take a look. The Don't List Penn National Gaming (PENN) was the worst performer on the list, and the stock that I think will buck the trend. But it's worth noting that headwinds exist in the gaming space. I like Penn, but would only focus on trading puts on the stock as a way to enter a longer-term position. In addition, I would avoid Las Vegas Sands (LVS), which shed 37% last year. Wynn Resorts (WYNN) is also an underperformer to avoid. I'm doing my best to focus on the REITs in the gaming space and less on the casinos. Las Vegas Sands and Wynn Resorts have too much exposure to China right now. Global Payments (GPN) might bounce back a little thanks to the harvest selling. But the buy-now, pay-later model is saturated in a world awash with cash. Fintech right now is a mess, and there are plenty of community banks that are trading on the cheap. If the community bank is under a price to tangible book value of 1, it's a good long-term buy. Pfizer spin-off drug play Viatris is a dud. Pharmaceutical spinoffs that fall tend to fall lower. This looks like a value trap. Though it could be bought out, that's too much speculation in a world that M&A is already going to be robust. Fidelity National is a fintech company that looks cheap and could experience a bit of a revival. But at the end of the day, I'd rather own insurance companies like CNA Financial (CNA) instead. Citrix Systems (CTXS) fell 27% last year, and might face activist pressure. But this is in a very crowded industry as well - "business collaboration software." Last year was the year of Slack and Asana and every other software that I've grown to hate personally. I'm steering clear as well. Finally, Activision Blizzard (ATVI) made billions on video games, but they're laying off contractors. That's a cause for concern in this crowded video game space. And MarketAxess and IPG Photonics operate outside my wheelhouse. I'm going to be looking to short some of these stocks - especially when momentum goes negative. In addition, I'm going to start shorting Twitter as well... because it's a garbage company on the brink of implosion. I'll explain that more tomorrow. Let's find some winners. I'll be back with more market notes by noon Wednesday before the Federal Reserve releases minutes from its December meeting. Enjoy your night, [GarrettSig] Garrett {NAME} Chief Analyst, American Markets [] --------------------------------------------------------------- [] [] Weaker Stocks Will Get Weaker [Garrett Pic]Dear Investor, This week, Apple (AAPL) hit a $3 trillion market capitalization. I don't know how to explain this valuation. After all, this is a larger market capitalization than the GDP of all but four nations. Are they going to invite CEO Tim Cook to the next G-7 meeting? This is a stock that sits in a staggering 312 exchange-traded funds (ETFs). But that's not the most incredible statistic about a stock that already represents more than 6.2% of the S&P 500. Check this out. The top 10 stocks on the index have the same total market capitalization as the bottom 412 stocks in the index. This explains how the S&P 500 can continue to rise while the majority of stocks in the index fall. If Apple and Microsoft both rally, their gains can offset the losses of hundreds of stocks. Last year, two personal favorites Devon Energy (DVN) and Marathon Oil (MRO) were the top performing stocks on the index. They will continue to rise if oil prices continue to move higher. But at the bottom of the chain there are a few other stocks. The bottom 10 stocks in the S&P 500 are generating a lot of buzz and interest. I think investors need to be cautious. Let's dig a little under the hood. I Agree With Whom? Last week, Jim Cramer - a man who rarely says sell - took the time to look at the worst 10 performing stocks in the S&P 500. Cramer said that the worst performing 10 stocks on the index will likely continue to underperform. Mr. Cramer has - in so many words - made the case for momentum in the year ahead. As I've noted, strong stocks tend to see stronger prices. This is an anomaly that has drawn academic interest for decades. Momentum as a strategy works. But on the other side, weaker stocks do get weaker. This is negative momentum. So, if we look across the index of stocks that have taken hits, we can see a combination of qualitative and quantitative factors that could lead underperforming stocks lower. Now - before we dive into these stocks, keep something in mind. These stocks will have occasional gains. Short squeezes will trigger. Short-term catalysts will ignite these stocks... But be warned that many people who have lost money on these stocks - which have underperformed - may use any short-term pops to sell and recoup whatever gains possible. The rallies will likely be short lived. Let's take a look. The Don't List Penn National Gaming (PENN) was the worst performer on the list, and the stock that I think will buck the trend. But it's worth noting that headwinds exist in the gaming space. I like Penn, but would only focus on trading puts on the stock as a way to enter a longer-term position. In addition, I would avoid Las Vegas Sands (LVS), which shed 37% last year. Wynn Resorts (WYNN) is also an underperformer to avoid. I'm doing my best to focus on the REITs in the gaming space and less on the casinos. Las Vegas Sands and Wynn Resorts have too much exposure to China right now. Global Payments (GPN) might bounce back a little thanks to the harvest selling. But the buy-now, pay-later model is saturated in a world awash with cash. Fintech right now is a mess, and there are plenty of community banks that are trading on the cheap. If the community bank is under a price to tangible book value of 1, it's a good long-term buy. Pfizer spin-off drug play Viatris is a dud. Pharmaceutical spinoffs that fall tend to fall lower. This looks like a value trap. Though it could be bought out, that's too much speculation in a world that M&A is already going to be robust. Fidelity National is a fintech company that looks cheap and could experience a bit of a revival. But at the end of the day, I'd rather own insurance companies like CNA Financial (CNA) instead. Citrix Systems (CTXS) fell 27% last year, and might face activist pressure. But this is in a very crowded industry as well - "business collaboration software." Last year was the year of Slack and Asana and every other software that I've grown to hate personally. I'm steering clear as well. Finally, Activision Blizzard (ATVI) made billions on video games, but they're laying off contractors. That's a cause for concern in this crowded video game space. And MarketAxess and IPG Photonics operate outside my wheelhouse. I'm going to be looking to short some of these stocks - especially when momentum goes negative. In addition, I'm going to start shorting Twitter as well... because it's a garbage company on the brink of implosion. I'll explain that more tomorrow. Let's find some winners. I'll be back with more market notes by noon Wednesday before the Federal Reserve releases minutes from its December meeting. Enjoy your night, [GarrettSig] Garrett {NAME} Chief Analyst, American Markets --------------------------------------------------------------- [] Revealed! Legendary Trader Exposes "Secret Daily List" To The Public... [rob booker]( [Click Here Now To Take A Look]( --------------------------------------------------------------- [] [] Revealed! 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Let a seasoned trading pro with DECADES of trading success hand select your daily trades for you! Just like trading “side-by-side” with a real professional trader, you’ll get a chance to… “…make $490 (or more) every single day the market is open.” That’s a potential $98,000 a year in trading profits just by simply following along and placing the exact same stocks as a real veteran trader. [>>CLICK HERE TO SIGN UP FOR THE LIST]( --------------------------------------------------------------- [] [] Article Recap - [Weaker Stocks Will Get Weaker](#i572731) - [[Recommended] Daily List Of High-Probability Stock Trades](#155250) --------------------------------------------------------------- [] Article Recap - [Weaker Stocks Will Get Weaker](#i572731) - [[Recommended] Daily List Of High-Probability Stock Trades](#155250) --------------------------------------------------------------- [] © 2021 Godesburg Financial Publishing, Inc. 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Please be aware that the claims regarding investing or trading results of non-employees are not tracked by GFP nor can they be verified. As always, past performance is not necessarily indicative of future results. Therefore, results presented in this email should NOT be considered TYPICAL. Actual results can and will vary based on everything from experience, ability, risk mitigation practices, and market volatility... to the amount of money exposed in the investment or trade. Investing and trading are speculative and carry serious risk. You may lose some, all - or possibly more - than your original investment or trade. GODESBURG FINANCIAL PUBLISHING IS NOT AN INVESTMENT ADVISOR OR REGISTERED BROKER: GFP, including its owners and employees, are NOT registered as securities broker-dealers, brokers, or any sort of registered investment advisors with the U.S. Securities and Exchange Commission, any state securities regulatory authorities, or any self-regulatory organizations. 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DISCLAIMER: COMMUNICATIONS FROM GODESBURG FINANCIAL PUBLISHING (GFP) ARE FOR EDUCATIONAL AND INFORMATIONAL PURPOSES ONLY – NOT INVESTMENT ADVICE: GFP and all the services it offers are for educational and informational purposes only and should NOT be understood to be securities-related offers or solicitations. None of GFP’s communications should be considered or used as personalized investment advice. GFP recommends that you speak with a licensed professional before making any investment decision. RESULTS PRESENTED ARE NOT NECCESSARILY TYPICAL OR VERIFIED: GFP communications may include information regarding the historical trading performance of gurus in their services (all verified by a third party), as well as testimonials of non-employees depicting profitable investments and trades that are believed to be true based on the representations of the persons providing the testimonial of their own free will. Please be aware that the claims regarding investing or trading results of non-employees are not tracked by GFP nor can they be verified. As always, past performance is not necessarily indicative of future results. Therefore, results presented in this email should NOT be considered TYPICAL. Actual results can and will vary based on everything from experience, ability, risk mitigation practices, and market volatility... to the amount of money exposed in the investment or trade. Investing and trading are speculative and carry serious risk. You may lose some, all - or possibly more - than your original investment or trade. GODESBURG FINANCIAL PUBLISHING IS NOT AN INVESTMENT ADVISOR OR REGISTERED BROKER: GFP, including its owners and employees, are NOT registered as securities broker-dealers, brokers, or any sort of registered investment advisors with the U.S. Securities and Exchange Commission, any state securities regulatory authorities, or any self-regulatory organizations. GODESBURG FINANCIAL PUBLISHING EMPLOYEES MAY HOLD SECURITIES DISCUSSED: If a writer holds any securities in a communication, it will be disclosed along with the information on the potential investment or trade. HIR, its owners or employees, have not been - or ever will be - paid by the issuer of a security mentioned in our services or communications. GFP, its owners and employees are paid entirely or in part from commissions based on sales of their services to subscribers. For more information, please visit [our disclaimer page here.]( Sent to: [{EMAIL}](mailto:) [Unsubscribe]( Godesburg Financial Publishing Inc., 251 Little Falls Drive, Wilmington, DE 19808, United States