Welcome to the first issue on the Investor Trip Daily where I cover what's going on in the financial markets along with my personal buys & sells throughout the day.
I'm working on delivering this free daily newsletter (Monday through Friday) via email but for now you can read it by visiting this blog, http://www.investortrip.com
1. Dow Jones Surges 11.4% for Biggest Day Ever
What a time to be an investor! We just witnessed the single 1-day gain in the Dow Jones on Tuesday as markets responded positively to a Fed deal to provide “unlimited QE” to the global economy. This looks like the bottom of the market has been reached but don't expect to reach the markets highs of January anytime soon. Earnings reports for Q1 and Q2 will be brutal for many companies so brace yourself in advance.
2. Recent Options Trades
I didn't buy or sell any stocks today since I did most of my stock buying on Monday when I posted the first edition of the Investor Trip Daily. I mentioned that stocks were looking pretty cheap and outlined my favorite ones in my Top 10 Coronavirus stocks article.
I did however close a few put options at losses. I was down $280 in my Macy's $5 strike March 27 put option. I also sold a $24 March 27 call option in Uber a little too early. I could have held on longer to maximize my gains. In this current environment, I haven't done well trading options due to the crazy uncertainity.
3. Uber Continues to Impress
Uber stock is up nearly 100% ever since March 18th when the CEO assured investors that Uber has a strong enough balance sheet to survive the Coronavirus crisis. If you bought shares under $20 or even $15 then congratulations on your patience. Right now, I'm holding onto my position and want to acquire more shares on dips.
4. Tesla Passes the $500 mark
On Tuesday, Tesla ended over $500 after the stock has plummeted due to news of Tesla factories closing around the world. Crazy huh? Just a couple of months ago, Tesla stock was approaching $1,000 per share and optimisim was at an all-time high. I expect shares to remain down since Tesla cannot produce vehicles during the COVID-19 outbreak. However, this could be a good time to acquire shares for you long term Tesla bulls out there.
5. Visa Stock Recovers Nicely
Visa is a Dow Jones stock that recovered nicely during the massive market surge. I didn't get a chance to acquire shares yet even though I am a huge long term Visa bull. I had reduced spending to preserve cash flow but I still want to pick up a few shares at this price point. Visa will suffer due to the slowdown in spending but has great long term prospects in a cashless society.
Tarik Pierce is the founder of InvestorTrip.com and regularly contributes articles to this website.
While living overseas, he uses PureVPN for a low cost VPN service.
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While his background is mostly related to trading stocks, he recently gained interest in real estate crowdfunding with Fundrise.