Today’s news:
• Apple Inc. (AAPL) is now Retired from the Buy Low Opportunities Portfolio.
• NVIDIA (NVDA) reported first-quarter results.
• Today’s Stock Market
• Today’s Bullish Price Charts
Apple Inc. (AAPL 316.85) joined the Buy Low Opportunities Portfolio in March, with the recommendation that investors buy low during the deep stock market correction. Those who bought AAPL when I added it to the portfolio have made a 19% profit in two and a half months! However, now that the stock has largely recovered from the correction, I’m Retiring AAPL from the portfolio in order to make room for new opportunities in the coming weeks. Retired.
NVIDIA (NVDA 351.01) reported great first-quarter results yesterday afternoon (January year end). Non-GAAP EPS of $1.80 handily beat the $1.69 consensus estimate, and revenue was $3.08 billion, slightly ahead of expectations. Importantly, the company guided second-quarter revenue to $3.65 billion, higher than the $3.29 billion consensus estimate. As expected, the recent Mellanox acquisition is enhancing NVIDIA’s data center chip business, which delivered $1.14 billion in quarterly revenue, 80% higher than a year ago. CEO Jensen Huang commented, “NVIDIA is well positioned to advance the most powerful technology forces of our time – cloud computing and AI.” NVDA shares have had a tremendous run-up since the March market correction. At this point, I would expect the stock to settle down and rest for a while. Hold.
Today’s Stock Market
The S&P 500 and Dow Jones stock indexes appear to have tentatively begun rising above a trading range that lasted for six weeks. My sense is that today will be a quiet day in the market, simply because it’s hard for me to imagine institutions going on a buying frenzy on the last trading day before a three-day weekend. However, barring any new and profound bad headlines hitting the airwaves, next week could certainly be a good week for U.S. stocks.
I’m not saying that a bullish stock market makes sense, in light of the terrible economic scenario that’s unfolding. I’m just saying that for now, investors are still pretending that we’re living in Shangri La. I plan to continue taking advantage of uptrends, paring back on stocks that rise to price resistance levels, holding more cash than usual, and avoiding companies that are typically hard-hit when consumers lack spending money.
In the near future, I’m going to suggest bearish investments once the S&P 500 appears ready to turn downward again. Those will include contrarian exchange-traded funds (ETFs).
Today’s Bullish Price Charts
Broadcom (AVGO 274.80, yield 4.7%, Buy)
Dow Inc. (DOW 35.82, yield 7.8%, Buy)
Equitable Holdings (EQH 18.01, yield 3.8%, Strong Buy)
General Motors (GM 25.80, Strong Buy)
NV5 Global (NVEE 44.80, Strong Buy)
Universal Electronics (UEIC 41.10, Buy)
VanEck Vectors Oil Refiners ETF (CRAK 21.56, Strong Buy)