Stocks in the Spolitght Stocks to watch

The markets, looking at the table above, had only 3 indices reach a new high this past week. The markets seem to be telling us that it is harder to climb the latest fall because there has been a drop in the number of indices setting new highs. Also, the VL & SPREAD are both broad market that lean to the big OTC stocks.

If Biden increases taxes, and continues to do stupid things, the markets are going to go down and they're going to go down hard, just like the economy, therefore, we need to enter caution into our strategy." Remember you heard it here first!

A good example, when searching for a new stock purchase, would be the stocks on this page, as almost all of them have moved up quite well, although there are still a few that still have room to climb. Also, there are no bad stocks on this page.

The recent move from my newest stock, cbdMD (see below recommendation) moved from a low near 0.50 to over $4 in the past few weeks showing what this stock is capable of. One example, would be a week ago the stock dropped from $3.85, $3.39 back to $3.85 for the 2nd week and now at $2.88 (This is a real deal).

This is the main reason to visit this page weekly.
I introduce new picks on this page first and you heard about cbdMD here first.

Speaking of new picks if you bought Know Labs, Inc. (OTCQB:KNWN) 8 weeks ago (recommendation below) you would be up almost 500%. From $2.03 a share to over $7.50 before backing off.
Learn more about Know Labs, Inc. below

I still recommend at least holding our strong positions, but with one I always open. From now on, in my opinion, the markets have little reason to continue climbing with all the damage president Biden is causing, plus the big jump in inflation. Remember, inflation is an enemy of the markets.

If we want to get in the market today we want to look at the trusted and true stocks such as Apple Computer (4 for 1 split), Walmart, Intel Corp., AMD (big mover, but slowing down) and others that hopefully have fallen back enough to put them in a buy area.

The price of gold had been bouncing up-and-down recently after falling from the $2000 per ounce level, which was much too high, as far as I'm concerned. I still don't feel metals are a safe place to be, especially after the big moves up in the last couple of years, but under Biden anything can happen. Also, with the jump in inflation it may cause money to move to the metals. If you want to buy metals look to silver as the better bet (after a pullback.)

Since I am a technician first, the fundamentals will always take a backseat while the trend will stay in the front. Due to the recent giant rally in the market we are finding many stocks are simply too high to buy. We can no longer count on the recent trend of any industry, meaning research and homework will be needed to find the winners within each industry.

My long-term pick, a stock that could be held for the next 20 years, would be Apple Inc., although the stock climbed over $499, before splitting. It's the kind of company that won't stop growing. They've got a lot of money and are very creative. The 4 for 1 stock split a few months back makes the new price lower with the stock closing at $130.46 this past week, up from $127.35 last week.

My near-term pick, is a stock that hasn't been trading that long and has a 52-week low under a dollar but has been climbing ever since. The name of the stock is cbdMD. Inc.. It trades on the NASDAQ and the symbol is YCBD. The current price is about a $2.88 and the 52 week low is $ 0.50, with the 52 week high $6.83 (recent). The company recently announced the completion of an $18 million secondary offering at one dollar. The stock is off the lows and trading strong, making anything lower from here is a buyers dream.

I say jump on this stock right now! I will bring more of this company to you soon but
don't wait for me with 18 million new dollars the stock could easily climb over
the previous $7.24 and higher,. a strong move from here.

The DOW 30 stocks that keep setting new highs (Dow30) are AXP, Apple, CAT, DOW, GS, IBM, Microsoft, Nike, Proctor & Gamble & TRV. These stocks have continued to set new 52-week highs. This is telling us fixing things at home seem to be leading the way, along with disinfectants and cleaning supplies that you'll find from P&G. Although the new highs have expanded to IBM,
CSCO & JPM, more in line with the economy.

The Dow Jones 30 industrials (see chart below) are closer to their highest point in a long time, meaning all 30 stocks, with only a couple of exceptions, are trading very near their 52-week high. This is a warning, since this is only happened once before, since I have been charting the discount to the 52-week high on all 30 stocks and right after it happened the market tanked.

This happened in 2010 when the discount to the 52-week high for all 30 stocks was a -2.87%. From that point on the market sold off simply because too many stocks were too high to buy.

I'm betting that the OTC stocks will outperform the blue chips on the upside and once the virus is behind us the big OTC stocks will rule, but only until Biden messes it up. I believe we were finally starting to see major benefits from corporate tax breaks but I also believe a Biden presidency will destroy the markets. If I am correct money will be made only in the first half of the year.

See more information on the DOW 30 stocks by clicking here

Looking at the chart above we can see at the beginning of 2020 the current discount to the 52-week high was lower than -22%. The discount moved between -7 to -11% until moving from a -10% to a -21% in only 7 days (2/28/20.) From that point on the markets fell quite hard all the way down to a discount of -41.53%, reached on 3/23/20, before working its way back up to a high of -3.25% on 4/16/21 but a big dro this past week with a current close at -9.32%. Remember this is the average of all 30 Dow Industrial stocks.

The DOW 30 is up +2683.60 (+8.7%%) on the year reaching a record new high of 34, 777.76 (5/7/21) breaking the previous high of 34,200.67 reached on 4/30/21. The chart above shows us just how strong the markets have been in the last year, except for a decent drop at election time and a decent drop this past week.

Another stock I like his Walmart (WMT) $135.17, off from $140.80 the week before, up around $4 in the last 9 weeks, because it has become more aggressive and it seems to be attacking Amazon. No matter how big Amazon is, Walmart is in a position to not only catch Amazon, but if they're smart they can overtake it. This is because each and every store is a warehouse making it possible to deliver things to you in just a few hours from the time you order, either online or on the phone. The share price has been climbing almost daily, but we saw a decent pullback this past week.

Wishing you the best for 2021! JR