Tech Investors Await IPO Bonanza Next Week, Highlighted By Snowflake And Unity...

[Option Beast]( 09/12/2020   |   [View in browser]( --------------------------------------------------------------- [Tech Investors Await IPO Bonanza Next Week, Highlighted By Snowflake And Unity, Even As Market Looks Shaky]( Companies across enterprise software, gaming and health tech are set to go public next week in one of the busiest stretches for IPOs this year. The stock market has shown surprising strength this year during the coronavirus pandemic, but is poised to wrap up its worst two-week stretch since March. "These offerings will succeed or fail based on fundamentals and their business prospects," said Lise Buyer, founder of IPO advisory firm Class V Group. [More...]( SPONSORED CONTENT [Options Trading System With A 94.8% Win-Rate On Last 727 Trades]( The key to being consistently profitable as a trader is to focus on high-probability trades. And in this powerful eBook by Dave Acquino, titled The Ultimate Income Trading System, you'll see exactly how Dave and so many of his students do just that. They make 4%, 5% or 6% on each trade and they're in the trade for just 11 hours. [CLICK HERE for instant access.]( [REFLECTIONS... A Summer Squall by David Sager](#) After August's extraordinary gains, and expecting September to follow suit with the same amazing upticks, we experienced a squall' of selling starting Thursday (9-3 and 4)), dampening the market and adding some 'short term fears.' The result was an erasure of $1.7 trillion in paper profits in the US stock market all in the last two days. Pulling all into perspective, investors were still up $13.1 trillion or 55.7% from the lows of March 23 and $2.2 trillion, or 6.3%, since the end of 2019, massive moves. A brief recovery late Friday heightened hopes this 'squall' was just a hiccup- a short term digesting of the rapid recovery run-up. September started well enough with the Naadaq and S & P 500 hitting all time highs on Wednesday (9-2) and the Dow just 1.5% away from its own all time high. But then a few fractures beneath the surface, and the techs seemed to weaken. The 'big guys,' Apple, Tesla, Amazon, and newly added Salesforce all closed weaker. Mimicking the big boys, the rest followed and selling started resulting in the worst week since June with the S & P 500 index off 2.3% and the Dow Jones Industrial Average off 1.8%. The tech heavy Nasdaq Composite, epicenter of the market's turbulence, slipped 3.3%, its worst week since late March. The other 'news,' Apple split 4 for 1 while Tesla split 5 for 1, as both stocks rose, continuing the 5 month rally. In August the S & P 500 was up 7%, and 35% since April, the strongest run since 1938! Then the dive of last week brought back some reality. My father would often say: "What goes up.....'sometimes' goes down." Unemployment fell sharply in August as hiring gains began to slow. As the U.S. economy continues to recover from the massive downturn triggered by the nasty pandemic positive signs are emerging. Employers added 1.4 million jobs last month, driving the unemployment rate to 8.4% from 10.2% in July according to Friday's Labor Department report. The jobless rate's decline, ( it has dropped from near 15% in April at the beginning of the pandemic) put it below the peak from the disastrous 2007-2009 recession. The jobless rate was a mere 3.5% in February- a half century low, just ahead of the coronavirus crisis. The economy is operating with about 11.5 million fewer jobs than in February. "We're in a very deep hole, and we're working our way out of it," said Gus Faucher, economist at PNC Financial Services Group, WSJ. "We continue to see very good improvement in the labor market, but I think the improvement is going to be slower going forward." The economy continues to face uncertainty with an average of 36,000 new cases of Covid 19 a day. Still the number of unemployed individuals saying their layoffs were temporary, declined to 6.2 million in August from 9.2 million in July, indicating many employers are bringing back workers. ZOOMED IN.....Zoom Video Communications this past week reported financial results that were, again remarkable. Three months ago earnings were up 169%. In the July quarter they 'did it again', up 355% from a year earlier. Video conferencing is now the accepted norm, initially benefiting from the Covid 19 inception and the 'stay at home' restrictions, and now a mainstay in every aspect of communication, from home to business. A sterling example is my wife, a professional fitness instructor at the local county recreational facility. She has not only maintained her classes, but increased attendance- some as far as New York City and Las Cruces, New Mexico, as many have joined in on Zoom. RUMBLINGS ON THE STREET Jonas Goltermann, Capital Economics, Barron's "Unlike in 2000, the largest tech firms today are highly profitable, and their valuations, while punchy, don't look obviously unsustainable. So while this correction may well have further to run, and we continue to think that tech stocks will fare less well than most other sectors as the economic recovery continues, we don't expect that a collapse in tech stocks will drag down the entire market in the way that it did in 2000-02." Mark Zuckerbereg, Facebook CEO, Barron's on plans to block political ads in the week before the election. "This election is not going to be business as usual." Michael Schwartz, Oppenheimer & Co's chief options strategist, Barron's "The options market is pricing this election like it will be one for the history books." Justin Warring, an investment strategist at UBS Group's global wealth-management arm, of tech's retreat. "The areas that have been punished the most in this selloff are the ones that benefited the most, Warring says. "The market is still settling into what's a fair valuation of these companies." [Peloton Draws Comparisons To Netflix And Amazon As Demand Booms]( Investors have shown some concern lately about whether popular "stay-at-home" companies would be able to sustain their momentum, but analysts seem to feel optimistic about the prospects for Peloton Interactive Inc going forward. [Article continues...]( [Used Cars Drive U.S. Consumer Prices Higher In August]( U.S. consumer prices rose solidly in August, with the cost of used cars and trucks increasing by the most in more than 51 years likely as Americans shunned public transportation because of fears of contracting COVID-19. [Click to continue reading this article...]( [5 Signs of an IRS Tax Scam]( THE CALLER ID MAY SAY IRS, but you shouldn't assume it's a government agent you're speaking with on the phone. It could be a fraudster hoping to intimidate you into providing sensitive information or making a payment on a tax bill that doesn't exist. Common IRS scams include demanding Social Security numbers or insisting on gift card payments. Failure to comply could result in threats that law enforcement is on its way. [More here...]( SPONSORED CONTENT [Legendary "Tarheel Trader" Reveals $5,000 Income Trick]( A legendary Tarheel trader claims she can show anyone how to pull down $5,000, $10,000 even as much as $20,000 a month in income thanks to her "backwoods" trading technique. She's giving away this method for free until Sunday. [Instant access here...]( --------------------------------------------------------------- [Option Beast]( Send this to a Friend. [Click here.]( | Not a Subscriber Yet? [Click here.]( All content © 2020 Option Beast Neptune Ave, 300 Main Street #711, Madison, NJ 07940 USA Welcome to Option Beast, an e-mail service that replaces many of our previous alerts. 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