Just a few weeks left in 2020.. sure there's plenty of time for the market to crash back to the March 2020 lows.... but I'm not so sure that's going to happen.
Those big bearish charts with giant red down arrows get all the fanfare... but trading for higher prices has been the right move the last 10+ years. I'd rather be right and 'dumb', as the bears have called anyone bullish this market the last 10 years, than wrong and 'smart'.
Or I just may be plain crazy. As crazy as the FED buying corporate junk bonds. Or keeping interest rates at zero percent despite a record high stock market. ...
On to that stock market. Yes here we are. Small caps new all time record highs yesterday. The S&P500 and NASDAQ about to open at new all time highs today.
While we are on the topic of crazy... how about that BIDU.
It hit support a few weeks ago and made a nice risk.reward call entry.
These $.54 calls are going to open around $40 this morning.
Back in October I highlighted BIDU as one of the stocks I likes into years end.
GS I thought from $200 was going to close near $250 at years end - its $244
EBIX was $20 I thought $30, $40 , $50 even. --->>> it tapped $39
$AA was $12 I thought it was going over $20. --->> its $22.30
$NTR $50s and sure enough it went $50s
So lets see a few names I like into early 2021.
I think $MMM is setting up like EBIX. I think in 2021 its going to break back over $200. Perhaps there will be a headline that sends it. Perhaps it will be a slow steady grind. But much like the BIDU, EBIX, NTR, GS, moves I thought were coming, that is exactly how I feel about MMM.
And the best part about MMM right now... the market doesn't see it coming.
Much like when the market was selling BIDU $155 calls for $.55 a few weeks ago, clueless about the pending explosion higher for BIDU... MMM is clueless. The market is pricing in sideways and lower action.
And perhaps that is what is going to happen.
The stock has broken a multi-year down trend. The company just announced some restructuring and cost cutting. Sales continue to grow and growth is turning around.
Maybe we have to wait until the next earnings report to see a meaningful move higher. Or could the stock just grind $.50 higher every week? it's possible. I think its going to have one or two really big up days in the near future. Despite the slow slog that options market is pricing in. $220? $230? $250 in 2021. Call me crazy.
Another stock I really like for 2021 is Mosaic. This is a stock I think is still flying under the radar. Like BIDU was a few months ago. The turnaround is here for MOS. Prices are on the rise. We have issues still heating up over in Belarus and the largest Potash miner in the world Belaruskali which could push prices even higher.
I think this $22 stock could trade over $30 in early 2021 and $40... $50? $60 even? Call me crazy.
Finally one more before the market opens.
ZNGA. Man... yeah a boring mobile game stock. Thats expected to grow at a 40% clip in 2021?
This is a name that seems to be left behind. Two consecutive stellar earnings reports. They just raised nearly 10% of the their market via an offering. and oh... yeah the chart looks great.
The stock is just breaking out of its long term bull flag.
This $9 ZNGA stock to $11 in early 2021? $15 by the Spring. $20 later in the year? Call me crazy