Stocks in the Spolitght Stocks to watch

The markets, looking at the table above, had no indices reach a new high this past week versus 1 the week before. Also, the VL & SPREAD are both broad markets that lean to the big OTC stocks and each failed to set a new high since 6/11/21. This could be a sign of danger ahead.

The the markets are strong, but you can't judge a book by the cover. Although the markets are acting decent this close to the top it might make us feel like there's no end to the bull.Nothing could be further from he truth. We need to remember the indices are trading at the high already meaning only big institutions are buying, not the private investor.

At this point the only one's that can win are the investors already owning the stock, simply because most stocks are already too high to buy. Also, it is easier to set a new high when the index, or market, is at the top.

With Stupid Biden continuing 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 "major caution" into our strategy." Remember you heard it here first! Also, inflation is climbing faster than it has for several years, which could easily send the bear out to pasture and the bull into hibernation.

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 and back down to under 2 dollars again is showing what this stock is capable of. (This is a steal.)

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) 9 weeks ago (recommendation below) you would Then up almost 500%. From $2.03 a share to over $7.50 before backing off.
Learn more about Know Labs, Inc. below

From now on, in my opinion, the markets have little reason to continue climbing with all the damage 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) and others that "hopefully" have fallen back enough to put them in a buy area. If your choice has not fallen back far enough, in this market, don't buy it.

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. Gold is currently at $1750 and hasn't traded over $2000 since August 2020.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 $146.06 this past week, off from $148.97 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 $1.97 and the 52 week high is $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 this past week were Microsoft and Proctor & Gamble. These stocks have continued to set new 52-week highs. 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. Although, recent selling has brought us down to over a -9% and under the -10% support level. This could be a warning.

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 are starting to see signs of trouble when looking at how long the chart below was trading around -7%, but currently just under a -10%. The question now is which way does it break out? 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 a choppy uptrend in the middle of 2020. The 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 with a current close at -9.42%. Remember this is the average of all 30 Dow Industrial stocks.

The DOW 30 is up +3978.40 (+13.00%) on the year reaching a record new high 4 weeks ago at 35,625.40 (8/16/21). 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 several weeks ago.

Another stock I like his Walmart (WMT) $144.73, off from $145.89 the week before, up around $6 in the last 18 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