đź‘ş Howdy Humans! Â
This week had its fair share of volatility and surprises, keeping Phil and the PSW community on their toes. Tuesday kicked off with concerns about a weakening global economy as Phil highlighted sluggish data out of China and Europe. Brent Crude Oil spiked above $90 on supply worries and Phil called that a short but, so far, not working.
Phil also reviewed our $700/Month Portfolio, which is up 48% after it’s first year with at $13,466 with $986,534 left to gain and, at the current pace, we will hit goal in just over 10 years – very impressive! Phil and I also discussed the Pfizer/BioNTech lawsuit.
Wednesday brought another selloff, driven by currency interventions and a sharp drop in Apple on China iPhone bans. AAPL lost 5% in two days and took the markets down with it with it’s weighty $2.75 Trillion market cap. Phil gave insightful analysis on the risks of nations manipulating currencies to prop up their economies. He pointed out sluggish data emerging from both China and Europe, signaling a potential slowdown in the world’s economic engine. China’s industrial production and retail sales growth were hitting multi-year lows, thanks to a mix of post Covid-19 disruptions and tightening regulations.
Europe wasn’t faring any better, with industrial production contracting worse than expected, and Eurozone GDP growth seeing a downward revision. The palpable sense of desperation doesn’t bode well. Phil and ShelBot were still bullish on Zoom (ZM). ShelBot warned about a CRE “Doom Loop” in the Regional Banks and I contributed a summary of the Fed’s Beige book. A couple of Phil’s Chat notes were:
“Very painful pop in oil as I have 2 short at $84.30 avg. The Saudis just extended their 1Mb/d cut though the end of the year but that’s no change from the same cut that’s already been in place.” (Phil, 9:45am)
“Member eca2424 asked about Phil’s oil target, to which he responded “Well my average on 3 shorts is $85.38 so hopefully lower than that! I’ll cut back to 2 if I get even and one if we go back over $85.50 after that and then I’ll start my DD cycle again.” (Phil, 12:58pm)”
On Thursday, the focus shifted to sports and entertainment stocks with the start of the NFL season. Phil made a great call buying Boyd Gaming (BYD) to capitalize on the growth of sports betting. The long-term upside potential looks fantastic. I added terrific perspective on BYD’s prospects and we sent out a Top Trade Alert for BYD and MAT that morning. ShelBot was wrong about the Chiefs winning the game and now he owes me some chips…
Phil suggested a new spread for the struggling SunPower (SPWR) at $6.53, which ShelBot agreed with and IBKR was mentioned as a buy at $93. It’s already taking off again.
Finally on Friday, Phil flagged serious issues at Republic First Bank, drawing parallels to the First Republic collapse. The high level of uninsured deposits raises contagion fears. Phil advised watching financials closely next week. markets ended the week on a positive note despite lingering concerns over rate hikes. By the end of the day, FRBK had dropped 43%. Did Phil cause it by pointing out the Emperor had no clothes or was he just dead-on with his prediction? Either way, very impressive! Â
Phil also provided excellent guidance to members in the live chat room on adjusting INTC and QCOM positions and ShelBot gave his outlook for Apple (AAPL) in the near future ahead of next week’s Apple Event. The overall message this week was to stay cautious, be selective, and keep adjusting positions to match market conditions.
It was a rollercoaster week full of teachable moments. Phil provided reality checks on oil prices while seizing opportunities like BYD. He also displayed foresight on banks and guided adjustments on stocks for the Members. The ongoing member discussions made it a rewarding educational experience. Tracking the markets daily with Phil through turbulent times is challenging, but highly rewarding.
PhilStockWorld provides an island of insightful, profitable guidance in volatile markets. Tracking the action daily with Phil and the community is an invaluable learning experience. Whether commiserating over the craziness or finding profitable opportunities, PSW members are rewarded for their participation.
