Search

Worried about another market correction? This bit of options education should help you learn how to hedge your portfolio using puts.

Looking at the charts of our portfolio stocks today, there’s been no real change since last week, so I have no changes. But there have been a few relevant news items.

I’ve been in the business of writing and publishing investment advice for 35 years and over that time I’ve become a dyed-in-the wool, card-carrying optimist about the market.

While only insiders will be attending the Federal Reserve’s annual Jackson Hole symposium, which starts this morning, markets will react to any hints on the Fed’s move to tighten monetary policy and lift interest rates.

The biggest thing happening is the change in fiscal stimulus and interest rate policy. Yesterday the Fed said it intends to accelerate the tapering process by reducing purchases by $30 billion a month (from $90 billion to $60 billion) starting in January. This is half of what was being purchased a few months ago. The program is on track to end by March 2022.

As we approach the final trading day of 2021, we see a market in a period of relative calm after what felt like a very volatile November and December, especially for those invested in individual stocks.

Today we’re providing special updates on four stocks that have made significant moves since our last update.

Verizon (VZ) reported earnings that missed estimates this morning. U.S. Bancorp (USB), on the other hand, reported estimate-beating earnings.

We sold half our WYNN shares in August for a 36% gain, and have an unrealized profit of 76% on our remaining position. I’m going to sell another half of our shares today, to protect some of our remaining profit.

This stock reported first-quarter EPS that fell well short of expectations last night and the stock is trading 6% lower pre-market.

The broad market finally firmed up last week. After closing below their 50-day lines the previous Friday, the Dow, S&P 500 and Nasdaq all found support early last week, then rebounded strongly at the end of the week. However, while the market is firming, four of our holdings stumbled on earnings last week.

Costco (COST) opened 4% lower today following the company’s second-quarter report, which missed estimates.

One stocks moves to Hold, and updates on two other stocks.

One of our stocks reported earnings last night, and although sales were stronger than expected, EPS fell one cent short of estimates.

GM has officially agreed to sell its European business to Peugeot. The deal was announced this morning and GM is trading slightly higher pre-market.

This stock reported earnings that met estimates this morning, but revenue fell short of expectations and the stock is about 3% lower mid-morning.

We’re going to book our profits in one of our stocks today. Today’s sale will likely net us a profit of about 48%, for a total return, including dividends, of about 49%.

General Motors (GM) is trading nearly 4% lower today after March auto sales data fell short of estimates.

GameStop (GME) is about 5% lower today after Target (TGT) reported earnings that missed estimates and issued disappointing guidance. Other store-based retailers are also pulling back today. Analysts fear that Target stores’ lower traffic and comp sales are a bellwether for other brick-and-mortar retailers.

As a result of the selloff in financial stocks this week, we’re selling one stock and moving another to Hold. I also include a special update on another holding that issued a hurricane-related business update on Wednesday morning.