Stocks in the Spolitght Stocks to watch

The markets, in my opinion, are still acting quite bullish, with 6 new index all-time highs this past week (there were 5 last week). Reaching a new all time high means all the indices, except the DJU, have reached a new 52-week high. This is quite bullish but now the big question is how long can this go on?

My concern is still with Joe Biden and the troubling things he is doing. Want a World War III, I have a feeling old Joe will take us there. Also, if Biden increases taxes the markets are going to go down and they're going to go down hard, just like the economy, therefore, if you are buying now make sure you keep your finger near the sell button. Remember you heard it here first!

Stocks may continue to climb for the first few weeks (months) of the new year, but once Biden's tax increase hits, along with a big jump in millions of new illegal immigrants getting paid for doing nothing, and along with millions of Americans losing their jobs simply because Biden doesn't understand what he's doing, they will walk up to a cliff and fall off. All I can say is don't be underneath the cliff when it falls.

Also, Although currently a strong market, it may not be able to stay that way as the more people leave the big cities the worse it gets. New York and California are already having problems with so many people leaving the state. In the case of New York they said the number leaving the state will cost the state billions.

The DOW 30 stocks that keep setting new highs (Dow30) are Home Depot, Apple, CAT, DOW, GS, 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.

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 many 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 $5 this past week.

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

Speaking of new picks like you bought Know Labs, Inc. (OTCQB:KNWN) 5 weeks ago (recommendation below) you would be up almost 500%. From $2.03 a share 2 weeks ago to over $7.50 3 weeks ago before backing off.
Learn more about Know Labs, Inc. below

I still recommend at least holding in the early part the new year, as the markets should remain strong until we start feeling the effects of the new administration, approximately around the beginning of the second quarter. From then on, in my opinion, the markets will have little reason to continue climbing with all the damage president Biden will cause.

As far as markets go, I feel we have already found the bottom and that was on 3/18/20 and I see little reason to go back down to test those levels, yet, but it probably won't take too long. Higher taxes, lower market!

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 (new high) 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. If you want to buy metals no matter 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 and a virus problem that promises to continue for some time to come we can't count on the recent trend of any individual stock, meaning research and homework is needed to find the winners.

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 weeks back makes the new price lower with the stock closing at $121.26 this past week, down from $137.37 last week.

My near-term pick, is a stock that hasn't been trading that long and was there the 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 $3.74 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.

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. 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 quarter.

Looking at the chart above we can see at the beginning of 2020 the current discount to the 52-week high was at -6.78%. 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 -14.69% on 6/8/20 and after continuing to higher ground and settling at -10.29% on Friday. Remember this is the average of all 30 Dow Industrial stocks.

The DOW 30 is up +325.89 (+1.06%) on the year and off -1029.49 (-3.22%) from the 52 week high of 31,961.86 reached on 2/24/21.

Another stock I like his Walmart (WMT) $129.92, because it has become much 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