I don’t need to tell you that 2020 was anything but typical for the market.
And from an investor’s perspective, 2021 is kicking off with a similar tone. Stocks started the first trading day of 2021 in the red across all three major indices.
It appears the market is facing another week of potential uncertainty.
That’s right, this week’s trading is likely to see a few curveballs thrown its way, as the political theater in D.C. has found a way to extend its show for yet another week into the new year.
One of the biggest drivers of the market is and always will be headlines. And as much as stocks would like to be focusing on technical breakouts and new highs, they’re going to have to deal with a few potential bumps in the road before we get there.
But each of those “bumps” can still provide profit opportunities for traders like us.
Here are the three keys to this week’s trading – plus, my top bullish picks…
There’s an unquenchable investor thirst for risk and return in this market – and it’s evident in the fourth quarter’s IPO activity.
Since October 1, more than 70 companies went public.
The list ranges from smaller, unknown companies like healthcare name Seer Inc. (Nasdaq:SEER) and financial group HF Enterprises Inc. (Nasdaq:HFEN) all the way to bigger, more familiar names like tech companies McAfee Corp. (Nasdaq: MCFE) and PubMatic Inc. (Nasdaq: PUBM).
But one of the most-talked-about IPOs was that of food delivery company DoorDash Inc. (NYSE: DASH).
And if I’m being honest, this is the one that also confused me the most.
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During a pandemic, it makes sense that a food delivery service could and probably would fare well. But actually, I think that’s where things went wrong.
Traders ran into the proverbial fire as soon as DASH shares started trading, boosting the share price to $195. From there, the stock hung – if for only a moment – like Wile E. Coyote just after he runs off the edge of a cliff.
Today, DASH has lost more than 25% as it continues to form a short-term bearish trend.
With one of the newest names on Wall Street’s block hitting a low, one has to wonder – is it worth a buy?
Find the answer right here…