Howdy folks. How was your weekend? If you were most anywhere in the continental Untied States, it was likely a cold and/or wet one. It's going to get worse before it get better too, if this map has anything to say about.
Yikes - there's no escaping that. Looks like winter is finally here, even if it doesn't officially get started until December 17th.
We didn't come here to talk about the weather though. Let's talk about stocks and the market, beginning with the most important news item we saw... featured stock Vitality Biopharma (VBIO) will be making a presentation on Thursday of this week, in Los Angeles, California, at this year's annual LD Micro Main Event. The presentation and meetings with investors will be held at the Luxe Sunset Boulevard Hotel, on December 8th, at 8 am PST/ 11 am EST.
If you want to see the presentation and/or met with CEO Robert Brooke, you have to register and request a conference. James Brumley has all the details on how you can do that right here.
If you've never been to one of these small-cap conferences, they're really great ways to learn a little more (or a lot more) about a company. It seems like there's always a "more to the story" perspective you typically can't find just by scouring an organization's SEC filings and press releases. Again though, you really do have to reserve a spot at the presentation or make an appointment if you're am accredited investor or intuitional investor and would like to meet a company's chiefs.
In other news, what can I say? The Under the Radar Movers team did it again. They picked a stock that just went ballistic.
This time around it was Goldfield (GV). The URM newsletter suggested it as a buy back on November 23rd, at a price of $3.25. It closed at $4.70 today, up 44% in less than two weeks.
We can't tell you much more than that about the newsletter's exit plan, other than to let you know James Brumley and his team do indeed have a trade-management plan in place, and there's an exit on the horizon. In fact, there's an entire trade-management strategy in place.
Obviously it's too late for you to jump into GV here, but it's not too late to get into the next ridiculous winner the Under the Radar Movers team digs up. Better still, you can become a member for less than a dollar per day. Here's the deal.
As far as the market goes, yeah, today was a bullish day for stocks, but today's bullishness had less to do with stocks themselves and had more to do with the U.S. dollar.
We know it's a story you guys are probably tired of hearing about, but if it's the most important thing going on right now, then it's the most important things going on right now.
As suspected, today the U.S. Dollar Index plummeted, breaking under a minor support level around 100.65, and likely kick-starting a sizable downward stroke. The falling U.S. dollar is obviously good for oil prices, and that's the arena that arguably needs the most help right now. Less obvious, though, is the fact that a weaker dollar helps U.S. companies that do business overseas... by making their goods and services more affordable to foreign buyers. At the same time, U.S. dollars now don't go as far when buying overseas goods, which means those dollars might instead be redirected towards the purchase of U.S. goods and services.
Granted, one day doesn't make a trend, and even if this one -day pullback turns into a multi-day selloff, the greenback is still at very lofty levels. It's a step in the right direction though.
Moral of the story? Don't fear a weaker U.S. dollar - it's not all bad. The trick is keeping the dollar from completely imploding.
To that end, just as a thought exercise, might this all be a scenario that justifies the printing of more money by the United States? More dollars in circulation would devalue the overvalued dollar, more dollars would increase inflation (and there's arguably not enough inflation right now), and if nothing else, the government could print money to pay down the national debt and still reap the benefit of more dollars in the global economic ether.
It's not like there wouldn't be repercussions - there always are. But, as is always the case, if you can manage the situation to minimize the adverse impact and maximize the upside, it may well be worth it.
Just thinking out loud here. Movin' on.
Whatever the case, though the market ended the day with a pretty respectable gain on Monday, it was a very suspicious effort. The VIX took a big step lower, and the S&P 500 itself peeled back from its highs. There was also a small gap between Friday's high and Monday's low. The market doesn't like to leave gaps behind.
Maybe I'm just being paranoid. I don't think that's the case though. With the S&P 500 valued at a trailing P/E of 21.7 and a forward-looking P/E of 17.4 - and with no clear timeframe on when Donald Trump's economic policies might take hold - we just have doubts investors are going to value stocks so richly when there's so much uncertainty on the horizon. This all may be the market's best effort at the typical December rally. Problem is, the December rally is largely predicated on a September/October pullback. We didn't get a September/October pullback this year.
One day at a time. And like we said, the dollar's doing all the driving until further notice.