|Day's Range||0.6000 - 0.6000|
These ETF areas have gained or lost assets in the month of May.
As the fallout from the coronavirus pandemic continues, the search for a vaccine is not slowing down.
Changing the nomenclature in the ETF industry is a good idea.
IPO Edge, in partnership with Off the Chain Capital, LLC, a digital currency & blockchain asset investment manager and The Palm Beach Hedge Fund Association, a Florida trade association for financial professionals, hosted a Webinar and audience Q&A on Tuesday, May 26 at 4pm EST – Turbulent Times: Why Add Bitcoin to Your Portfolio Now. To watch […]
Sentieo Data Show Google and Twitter Interest in Bitcoin Doubling So Far This Year Bitcoin and other cryptocurrencies have played a divisive role in the last few years, but recently, the interest has drawn a far wider investor base. Indeed, Paul Tudor Jones surprised Wall Street earlier this month when he revealed a significant […]
In 2020, one of the most trusted asset classes has possibly been gold, with the shiny metal up about 13%. One way to play the recent gold rush is a leveraged exchange traded fund, such the Direxion Daily Jr. Gold Miners Bull 2X ETF (NYSEARCA:JNUG). Year-to-date, JNUG stock is down about 87%.Source: Shutterstock JNUG tracks the MVIS Global Junior Gold Miners Index (MVGDXJ). And it seeks a 200% or -200%, i.e., 2X, of the return of this benchmark index for a single day. This daily leverage gives JNUG certain characteristics that may make it a rather inappropriate long-term holding for most retail investors.Let's see why.InvestorPlace - Stock Market News, Stock Advice & Trading Tips JNUG Stock is a Leveraged ETF (LTEF)Many investors are familiar with a wide range of exchange traded funds that enable them to track the price of the commodity. Examples include the SPDR Gold Shares (NYSEARCA:GLD) or SPDR Gold MiniShares SPDR Gold MiniShares (NYSEARCA:GLDM). Year-to-date, they are up 14% each.There are also investment funds that invest in various miners, such as the VanEck Vectors Gold Miners ETF (NYSEARCA:GDX) or the VanEck Vectors Junior Gold Miners ETF (NYSEARCA:GDXJ). In 2020, they are up 23% and 12% respectively. * 7 Excellent Penny Stocks Ready to RoarIt is important to remember that JNUG stock is a leveraged exchange traded fund (LTEF). Two of the most popular LTEFs include JNUG and the Direxion Daily Gold Miners Bull 2X ETF (NYSEARCA:NUGT). And leverage makes the long-term performance of both JNUG and NUGT differ than the performance of the underlying assets. Similar to JNUG stock, NUGT is also down 55% so far in the year.Put another way, although GLD, GLDM, GDX and GDXY are up considerably so far in 2020, the same is not true for either JNUG or NUGT. Similarly, MVGDXJ, the index that JNUG tracks is up 13% in 2020.Over the past five months, these leveraged exchange-traded funds have not at all performed like the ETFs that track either the commodity of various gold miners.This discrepancy in long-term returns is due to the daily leverage used. How Leveraged ETFs WorkA 2X leveraged ETF like JNUG stock is structured to be constantly 2X leveraged on a daily basis. This 2X long LTEF needs to buy every day underlying asset prices go up, and sell when they go down.The leverage is achieved through the use of rather sophisticated financial instruments, such as swaps, futures, and options. However, the daily resetting involved in JNUG stock is rather complex and makes it a no-go as a long-term holding. The compounding effects of daily returns work against long-term investors.JNUG stock also has a "bear inverse" ETF, i.e., Direxion Daily Jr. Gold Miners Bear 2X ETF (NYSEARCA:JDST). Simply stated, JNUG stock is 2X bull and JDST stock is 2X bear.Let's compare the performance of both indices as of March 31, 2020: * 5-year return: JNUG -52.90% and JDST -80.37% (i.e., both returns are negative) * 3-year return: JNUG -68.8% and JDST -63.7% (i.e., both returns are negative) * 1-year return: JNUG -92.0% and JDST down -92.8% (i.e., both returns are negative)In theory, short-term (possibly day) traders could consider JNUG stock to go long smaller gold miners and JDST to go short.But looking at the performance over time, long-term traders should not consider JNUG stock to go long. Instead it looks as a vehicle of wealth destruction. How is that possible?Let's see an example. For example, if the underlying index MVGDXJ moves down 5% on a given day, then JNUG stock should move down 10%. If we assume a stock price of $10, JNUG should be down to about $9 after the first day.On the second day, if the MVGDXJ moves up 5%, over the two days the MVGDXJ return will be -0.25%. A long-term retail investor may think JNUG should be down 0.5%. Yet, the 10% increase on day two will bring shares up from $9 to $9.90, and the JNUG stock would, in reality, be down by 1%.And any investor who holds these leveraged ETFs for a long-period will find out that his or her capital would eventually be eaten up by this volatility and daily re-balancing. Thus JNUG stock can only be appropriate for experienced short-term traders looking for leverage and volatility. The Bottom Line on JNUG StockBefore you decide to buy leveraged ETFs, such as JNUG stock, it'd be extremely important to understand how they work, with an emphasis on their drawbacks. The use of leverage as well as volatility give their unique properties to these funds. Gold is quite a volatile commodity, and gold miners are a leveraged play on gold prices.Therefore, the long run returns of a 2X ETF like JNUG stock are rather dangerous and unpredictable. Even if the underlying index moves in favor of the LTEF, JNUG stock might still lose considerable value over the long term.As you increase your knowledge base on these leveraged exchange-traded funds, you may quickly realize that LETFs are likely to be more appropriate for professional traders for hedging purposes than buy-and-hold retail investors.Tezcan Gecgil has worked in investment management for over two decades in the U.S. and U.K. In addition to formal higher education in the field, she has also completed all 3 levels of the Chartered Market Technician (CMT) examination. Her passion is for options trading based on technical analysis of fundamentally strong companies. She especially enjoys setting up weekly covered calls for income generation. As of this writing, Tezcan Gecgil did not hold a position in any of the aforementioned securities. More From InvestorPlace * Top Stock Picker Reveals His Next 1,000% Winner * America's Richest ZIP Code Holds Shocking Secret * 1 Under-the-Radar 5G Stock to Buy Now * The 1 Stock All Retirees Must Own The post Be Careful Using Leveraged JNUG Stock to Buy Gold appeared first on InvestorPlace.
The SPDR Gold Trust (NYSEARCA:GLD) is on a hot streak so far this year. The related gold mining stocks and funds such as the VanEck Vectors Gold Miners ETF (NYSEARCA:GDX) are enjoying even greater gains. The GLD ETF is up 13.5% year-to-date, and 35% over the past 12 months. Meanwhile, the GDX gold mining ETF has posted huge returns. It's up 22% year-to-date, and 75% since last May.Source: Shutterstock Naturally, some traders are thinking about taking profits here. It's been a big move, after all. But don't miss the forest for the trees. Gold traders are used to the bear market that had been running in precious metals since 2012. Thus, their inclination has been to sell every advance.But the trend has changed. Gold is in a new expansion phase, and investors should be strapped in for the ride. In fact, precious metals were already in an uptrend even prior to 2020. And now, the novel coronavirus has greatly accelerated that dynamic.InvestorPlace - Stock Market News, Stock Advice & Trading Tips GDX and Gold Mining Stocks: It's 2008 All Over AgainEven as the financial crisis was already well under way, in 2008, the price of gold soared to an all-time high of $1,000 an ounce. To many investors, that record-high price probably seemed like an ideal opportunity to sell. When other things are plunging, the first instinct might be to sell the asset that has appreciated. But even at $1,000 an ounce, it was as actually a great time to buy. Gold's price nearly doubled over the following three years and rose to $1,900 an ounce in 2011. * 7 Excellent Penny Stocks Ready to Roar Today's gold market feels eerily similar to the 2008 version. The price of gold just hit a seven-year high of $1,747 an ounce and is setting up for what I believe will be a rapid double over the next couple of years.This rally is causing a huge ripple effect in gold mining stocks like GDX. In fact, almost all of my gold stock recommendations have doubled already. But I think they're just getting warmed up. The current economic crisis has created a perfect situation for the gold mining industry. Even in Recession, Gold Miners Can Grow EarningsOne key point to consider is that almost every stock market sector will being delivering negative earnings growth over the next several quarters. One sector that will not be following this downtrend is the gold mining sector. It will be producing strong year-over-year growth - perhaps even the strongest growth of any major sector.To give one example of how this is already playing out, look at mining giant Newmont Mining's (NYSE:NEM) earnings report from earlier this month. Newmont reported that revenues soared 43%, EBITDA surged 63%, and adjusted net income nearly doubled.Gold miners enjoy tremendous margin expansion as the price of gold soars. Newmont proved that out with income surging far more than revenues, and we're seeing similar trends out of other miners this earnings season.The low price of oil offers another huge tailwind for the mining firms. Investors complained that mining stocks didn't capitalize as much on the 2003-2011 gold price boom as they would have expected. However, earnings growth was capped because there was huge commodity price inflation at the same time. Remember that oil shot up to as much as $147 a barrel during that period. Other things you need to build mines, like steel, also surged in price. Thus, while miners could sell gold for far higher prices, they lost much of those gains to inflation.This time around, other commodities are dirt cheap. For example, diesel fuel for mining trucks is near 20-year lows. Steel prices have dropped. There's no labor inflation either; after nearly a decade of low gold and silver prices, there is no shortage of capable geologists willing to work for reasonable wages. Gold Mining Stocks VerdictLong story short, this could be the start a golden age for precious metals miners and GDX. In many ways, this resembles 2008. The ingredients are there to set off a major run in the price of gold. Don't look at $1,700 an ounce as expensive -- it could be just the beginning of a major multiyear move to far higher price levels.Meanwhile, gold miners are ideally positioned heading into this surge. Few have hedged their production heavily, leaving more upside as prices surge. Cost inflation is minimal. And the aggressive monetary stimulus being used to fight the coronavirus recession should provide a sustained flight-to-safety trade along with a demand for inflation hedges.As we get past the virus and start to consider the long-term economic impacts, there will be more concern about inflation. The amount of central bank stimulus put into the economy is unprecedented, and it will boost asset prices. Gold mining stocks should be one of the biggest beneficiaries in coming months and years.P.S. Where Did All the Gold Go? Billionaires like "Bond King" Jeffrey Gundlach… Ray Dalio… Stanley Druckenmiller… and Paul Tudor Jones are bullish on the yellow metal…78-year-old billionaire investor Sam Zell just bought gold for the first time in his life! What do they know that the average person doesn't? What does this mean for the future of the economy?I think you'll be surprised when you see. Click here to see the full story.Eric Fry is an award-winning stock picker with numerous "10-bagger" calls -- in good markets AND bad. Eric does not own the aforementioned securities. More From InvestorPlace * Top Stock Picker Reveals His Next 1,000% Winner * America's Richest ZIP Code Holds Shocking Secret * 1 Under-the-Radar 5G Stock to Buy Now * The 1 Stock All Retirees Must Own The post The Bull Run in the Gold Miners ETF Is Just Getting Started appeared first on InvestorPlace.
IPO Edge, in partnership with Off the Chain Capital, LLC, a digital currency & blockchain asset investment manager and The Palm Beach Hedge Fund Association, a Florida trade association for financial professionals, will host a Webinar on Tuesday, May 26 at 4pm EST - Turbulent Times: Why Add Bitcoin to Your Portfolio Now. CLICK HERE […]
Among big asset managers, Vanguard came in fourth in April in terms of net new fund flows, but is still on top over the past 12 months and in a class by itself in terms of AUM.
Gold and silver prices rallied Monday amid market strength as news from a Moderna Inc (NASDAQ: MRNA) trial stoked optimism about a potential coronavirus vaccine. On Monday, June gold futures were trading at $1,733 and July Comex silver prices were at $17.39 per ounce."Gold and gold stocks had a strong month, recovering all of their March losses and moving to long-term highs," Joe Foster, portfolio manager and strategist at VanEck, said in a note.Hedging With Gold As the pandemic market panic subsides, investors are trying to gauge the risks and opportunities in a world that carries a level of uncertainty that only those with memories of the Great Depression and World War II have experienced, the VanEck strategist said. "Continued strong inflows to bullion exchange traded products along with strong demand for retail coins indicates both institutions and individuals are turning to gold as a store of value and hedge against uncertainty," Foster said. On April 9, gold jumped $40 per ounce when the U.S. Federal Reserve unveiled its $2.3-trillion program to aid local governments and small- and mid-sized businesses."It [gold] went on to a new seven-year high of $1,747 per ounce on 14 April, then consolidated its gains around the $1,700 level. Gold ended the month at $1,686 per ounce for a $109 (6.9%) gain," he said. Banks 'Can't Arbitrarily Print' Gold The trillions being injected into the economy via quantitative easing alongside monetary and fiscal stimuli devalues and debases paper currency, said Bryan Slusarchuk, CEO of Fosterville South Exploration. "Gold is the only currency that central banks can't arbitrarily print more of, and as such it is the only currency that acts with stability during a time of crisis," he said. With more and more paper currency in circulation, the currencies become inherently worth less and less, the CEO said. Price Action The SPDR Gold Trust (NYSE: GLD) was down 0.57% at $163 at the time of publication Monday, while the VanEck Vectors Gold Miners ETF (NYSE: GDX) was down 1.56% at $36.Related Links:Barrick Gold Reports Q2 Earnings BeatMining Sector Hit By Coronavirus Lockdowns, Silver Production WallopedLatest Ratings for GLD DateFirmActionFromTo Apr 2013Oracle Investment ResearchInitiates Coverage onStrong Buy Apr 2013Oracle Investment ResearchInitiates Coverage onStrong Buy View More Analyst Ratings for GLD View the Latest Analyst Ratings See more from Benzinga * Gold Analyst Says Rally Is Short-Term, Prices Will Recede To ,600 By Year's End(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Inflows into the largest and most liquid ETFs representing two very different asset classes shows how investors currently prefer to stick with what’s already proven itself.
We're in unprecedented times thanks to the novel coronavirus. That goes double for investors, as they try to figure out what stocks and assets are worth owning at this stage of the game. With gold always a fixture, are gold stocks worth owning at this point?Source: Shutterstock That answer really depends on the situation.Overall, I am bullish on gold, but there are doubts. With so many other investors watching the yellow metal and seemingly bullish on it as well, it's a bit concerning. Anytime there is too much focus on one asset or stock is exactly when it seems to disappoint the majority.InvestorPlace - Stock Market News, Stock Advice & Trading Tips It All Starts With GoldBefore we talk about gold stocks, we have to talk about gold. Because you can't be bullish or bearish on the group without having an opinion on the metal first. It's like judging energy producers without having studying oil. The commodity drives the miners' business, so we better have a thesis on the yellow metal. * 20 Stocks to Buy If You're Still Betting on America to Thrive Under the current circumstances, how can we not like gold? First, gold is viewed as a safe haven, along with bonds. But with bonds paying so little in the way of interest -- 10-year Treasury bonds yield just 0.65% -- gold may start to get more attention.Rather than simply speculate on safe-haven plays, there's another reason to like gold. The Federal Reserve, European Central Bank, and global central banks around the world are resorting to stimulus to offset economic setbacks from the coronavirus.When central banks print money, it devalues the currencies' worth. Thus, it makes assets like gold more valuable. It won't happen overnight, but as the Fed and others look to stimulate, it seems like gold will have to be an eventual beneficiary. One of Wall Street's most famed traders agrees too -- well, sort of.Paul Tudor Jones recently warmed up to bitcoin, saying the currency reminds him of gold a few decades ago. He said:It has happened globally with such speed that even a market veteran like myself was left speechless…We are witnessing the Great Monetary Inflation -- an unprecedented expansion of every form of money unlike anything the developed world has ever seen.He considered gold, Treasuries, and certain stocks. In the end he settled on bitcoin, which he referred to as the "fastest horse" in the group. How to Play Gold Stocks Click to EnlargeInvestors have essentially three takeaways with gold.First, they can be bullish on the yellow metal, believing it will act as a safe haven in our current environment and as a store of value as central banks pump out cash. Second, they can bearish, believing that those are not worthy catalysts or that too many eyes are on the metal.Finally, they can be without opinion, opting to pass on a position in gold in favor of assets they understand better.For those that are bullish, they can consider owning physical gold. They can also consider buying the SPDR Gold Trust ETF (NYSEARCA:GLD). Beyond that, they might consider owning gold stocks too.I like both Barrick Gold (NYSE:GOLD) and Newmont Mining (NYSE:NEM). Both stocks have had explosive moves off the lows. While they seem to be losing some momentum, I think it's simply some consolidation after a powerful move. We're seeing similar consolidation (on a less-powerful move) in actual gold prices.Those who don't like single-stock exposure can consider the VanEck Vectors Gold Miners ETF (NYSEARCA:GDX). Incidentally, Newmont Mining and Barrick Gold are the top two holdings in the ETF, with a 15.5% and 14.8% weighting, respectively.Keep in mind, if volatility really picks up, safe-havens may temporarily be out of favor. Bonds, gold and other assets all felt the pressure when stocks were tanking in March. It was likely that investors had to sell others assets (like these) to meet margin calls and raise liquidity.Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell. As of this writing, Bret Kenwell is long GLD. More From InvestorPlace * Top Stock Picker Reveals His Next 1,000% Winner * America's Richest ZIP Code Holds Shocking Secret * 1 Under-the-Radar 5G Stock to Buy Now * The 1 Stock All Retirees Must Own The post Should You Buy Gold Stocks Now? Well, That Depends appeared first on InvestorPlace.
I love Nvidia (NASDAQ:NVDA) and NVDA stock. But can any stock be worth 17 times revenues while unemployment is near 20% and the Dow Jones Industrial Average still in bear market territory?Source: Hairem / Shutterstock.com Nvidia was due to open for trade May 8 at $307.75, just $8 per share from its all-time high of February. Moreover, its market cap is now over $183 billion, and the price-earnings ratio of 66. The stock also sits well above its one-year price target of $300 per share.Of course, price targets can change. They're just a guess by analysts. The Nvidia bulls at Piper Sandler just raised their target on Nvidia to $350, based on the completion of its Mellanox acquisition. Additionally, our Matt McCall also calls NVDA stock a "buy." I even have some shares in my own retirement account.InvestorPlace - Stock Market News, Stock Advice & Trading TipsSo with all of that in mind, let's take a closer look at NVDA stock. Nvidia TriumphantCloud stocks like Nvidia appear invulnerable to the novel coronavirus because the cloud continues to prove its worth. * 10 Key Stocks to Watch Over the Next Few Months That said, Nvidia is at the center of it. Its graphics chips and operating software are the best way for clouds to upgrade for artificial intelligence and the machine Internet. Its acquisition of Cumulus Networks, which makes Linux-based network switches, will turbocharge its data center growth.Moreover, Nvidia started as a gaming chip company. The fast refresh needed to make games seem realistic is also the key to making clouds responsive to the edge of the network. That said, the Cloud Czars -- led by Amazon (NASDAQ:AMZN) and Microsoft (NASDAQ:MSFT) -- are buying gear with both hands. Cloud capacity is constrained by a "rush to the rail" from the coronavirus, and this has compressed years of new demand into months. It has made the dream of a mass work from home market a reality, and has kept the economy going through the pandemic.That said, Nvidia is already ahead of the curve with a new development approach called MLops. This combines development operations with machine learning to automate software development itself. Approaching the LimitHowever, there is a limit. Nothing can grow to the sky. Clouds cut costs, they reduce the need for employment, but there must be an economy for them to serve.But, that economy is crashing.Additionally, analysts are expecting Nvidia to report earnings per share of $1.68 on revenue of $2.8 billion later this month. That said, those are just about the same numbers as what was reported for the previous quarter. Sales could accelerate from here, but clouds were built on the idea of lowering costs to the floor. The biggest cloud companies, like Alphabet (NASDAQ:GOOGL), are also becoming chip developers. Therefore, there will always be competition for Nvidia.Based on its growth rate and the underlying global economy, NVDA stock is getting more expensive than, what exactly? Nvidia shares have done more than twice as well as the SPDR Gold Trust (NYSEARCA:GLD). Moreover, diamond sellers LVMH (OTCMKTS:LVMUY) are down almost 20% on the year, while Nvidia shares are up 32%. Nvidia has also tripled the gain in Gladstone Land (NASDAQ:LAND), the raw land Real Estate Investment Trust (LAND).The rush to the cloud makes sense, from a business and practical standpoint. However, the stampede is close to becoming a mania -- and such things always end poorly. The Bottom LineTo call Nvidia shares today fully priced is an understatement. Investors are piling into the cloud because nothing else is working. Enterprises of all sorts cut their costs with cloud. Clouds are deflationary, and ultimately, they're job killers.Clouds justify investor love. They pay for themselves, but there must be an economy for them to serve, or the savings they create is just deflation. The Fed's dramatic increase in the money supply mean there's a ton of cash sloshing around, looking for a place to go.Overall, a cloud crash could be coming. And when it does, Nvidia will not be immune.Dana Blankenhorn has been a financial and technology journalist since 1978. His latest book is Technology's Big Bang: Yesterday, Today and Tomorrow with Moore's Law, essays on technology available at the Amazon Kindle store. Write him at email@example.com or follow him on Twitter at @danablankenhorn. As of this writing he owned shares in MSFT, AMZN, and NVDA. More From InvestorPlace * America's 1 Stock Picker Reveals Next 1,000% Winner * 25 Stocks You Should Sell Immediately * 1 Under-the-Radar 5G Stock to Buy Now * The 1 Stock All Retirees Must Own The post Is Nvidia Stock Finally Overpriced? It May Be For These Reasons appeared first on InvestorPlace.
It's a busy earnings seasons for high-growth stocks and that continues after the close. That said, let's look at a few top stock trades as a result. Top Stock Trades for Tomorrow No. 1: PayPal (PYPL) Click to Enlarge Source: Chart courtesy of StockCharts.comPayPal (NASDAQ:PYPL) earnings are due up after the close, and man, this one has been strong. Shares have climbed 58% from the March lows and hit new 52-week highs on Wednesday. That's going to set expectations quite high for the print. In any regard, let's watch this one for a pullback. If shares dip -- especially on great numbers -- I'd love to see the $120 to $124 area hold as support. This was a recent consolidation zone, and also a breakout level over a long-term double top.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 9 Online Retail Stocks Profiting From Social Distancing A further decline could send shares back to uptrend support, currently near $115 (blue line). Below that, and its cluster of moving averages between $106 and $110 should buoy PayPal. Top Stock Trades for Tomorrow No. 2: Gold ETF (GLD) Click to Enlarge Source: Chart courtesy of StockCharts.comWhat a difference a day can make. Just yesterday I considered taking a look at the SPDR Gold Trust (NYSEARCA:GLD), but wanted to wait one more day. At the time, shares were rotating over the prior day's high, closing near the highs and clearing the 10- and 20-day moving averages. Bulls looked like they were finally regaining some momentum. With Wednesday's gap-down though, that constructive price action is being demolished. On the bright side, the $158-ish area held as support. But until it reclaims the 10-day and 20-day moving averages, it's hard to trust GLD on the long side. Especially as it makes a series of lower highs (purple arrows). Now it's simple. Bulls need to reclaim Tuesday's high at $161.10, while bears need to crack the two-week low near $157. Below puts the 50-day moving average in play. Top Stock Trades for Tomorrow No. 3: Peloton (PTON) Click to Enlarge Source: Chart courtesy of StockCharts.comLike PayPal, Peloton (NASDAQ:PTON) has been on fire ahead of earnings. Shares ended the day on Wednesday up 5% on the day with earnings due up after the close. This one has been much more volatile, falling more than 50% from the December highs before doubling off the March low. A bullish reaction could send shares spiking into the $40s. However, a bearish reaction could trigger a pullback. On a dip, I want to see if the $35 to $36 breakout area acts as support. * 3 High-Risk/High-Reward Stocks To Buy for Intrepid Investors On a move below this area, a dip into the low- to mid-$30s could be in play. There it will find uptrend support (blue line) near $32.50 and the 61.8% retracement near $31. Top Trades for Tomorrow No. 4: Virgin Galactic (SPCE) Click to Enlarge Source: Chart courtesy of StockCharts.comVirgin Galactic (NYSE:SPCE) stock continues to digest nicely. While it's no longer above uptrend support (blue line), it continues to make a series of higher lows. Now back over the 50-day moving average, let's see if SPCE can breakout over the $20 mark. Above the April high at $21.07, and Virgin Galactic can really take flight. Could it return all the way up to $28? With enough momentum it certainly could, considering this stock topped $40 earlier this year. On the downside, watch for a break of the May low at $15.55. Below puts the 200-day moving average in play. Top Trades for Tomorrow No. 5: Beyond Meat (BYND) Click to Enlarge Source: Chart courtesy of StockCharts.comBeyond Meat (NASDAQ:BYND) is ripping on earnings, ending Wednesday up 26%.With the move, BYND shares are clearing the declining 200-day moving average, which was resistance last month. Further, it's clearing the April high at $116.64 and the 78.6% retracement for the 2020 trading range at $16.60.So what now? Look for Beyond Meat to climb to $130 resistance. Shares failed to push through this zone earlier in the year. If it can rally this far, let's see how it acts once more. As crazy as it seems, $155 to $160 could be on the table if Beyond Meat can break out over $130 and gain momentum.Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell. As of this writing, he did not hold a position in any of the aforementioned securities. More From InvestorPlace * America's 1 Stock Picker Reveals Next 1,000% Winner * 25 Stocks You Should Sell Immediately * 1 Under-the-Radar 5G Stock to Buy Now * The 1 Stock All Retirees Must Own The post 5 Top Stock Trades for Thursday: PYPL, GLD, PTON, SPCE, BYND appeared first on InvestorPlace.
This year has been a strange year in Wall Street no matter how you look at it. But at least one strange dynamic between the prices of gold and silver actually has a somewhat simple explanation.The SPDR S&P 500 ETF Trust (NYSE: SPY) is down 10.8% year-to-date in 2020. So far this year, the SPDR Gold Trust (NYSE: GLD) has been a major market leader, gaining 11.6%. But at the same time, the iShares Silver Trust (NYSE: SLV) has been a significant laggard, dropping 16.9% on the year.In fact, the ratio of gold-to-silver prices is currently around 116, its highest level in history dating back to ancient times, according to DataTrek Research co-founder Nicholas Colas.History Lesson For hundreds of years, the ratio of gold-to-silver prices ranged from around 15 to around 20 up to the point the U.S. came off the gold standard in the 1970s. Since that time, the ratio has spiked significantly above 40 several times. Colas said these spikes have typically occurred during periods of economic and/or geopolitical instability.While it may seem strange for gold and silver prices to be heading in opposite directions, Colas said the key to the strange dynamic lies in the demand drivers for both metals. Industrial demand accounted for about 51% of silver demand in 2019 and only 9% of gold demand. At the same time, gold demand is driven much more by investors, who see the metal as a flight-to-safety trade during times of market turmoil and periods in which investors are fearful of inflation.Given industrial demand has plummeted due to coronavirus (COVID-19) shutdowns and investor demand for gold has jumped due to concerns about the global economy, Colas said it makes perfect sense why the prices of the two metals are heading in opposite directions."Silver prices won't recover until the global economy and industrial production do, so the gold/silver ratio at all-time highs makes sense," he said.Benzinga's Take For investors who believe the worst of the COVID-19 crisis is now passed and an economic recovery is imminent, the high gold-to-silver ratio could present an interesting pair trade opportunity.Traders who anticipate the gold-to-silver ratio will ultimately regress toward its long-term average could consider buying the SLV fund and shorting the GLD fund.Do you agree with this take? Email firstname.lastname@example.org with your thoughts.Related Links:7 ETFs To Buy In A Recession 7 Ways To Invest In Gold Amid Coronavirus FearsLatest Ratings for GLD DateFirmActionFromTo Apr 2013Oracle Investment ResearchInitiates Coverage onStrong Buy Apr 2013Oracle Investment ResearchInitiates Coverage onStrong Buy View More Analyst Ratings for GLD View the Latest Analyst RatingsSee more from Benzinga * 7 Best-Performing Stocks Of 2020: Buy, Sell Or Hold? * Bitcoin Is Still Failing As A Flight To Safety Investment(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
There are still some big earnings reports left for Thursday evening and Friday morning, as investors look for clarity heading into the weekend. With that in mind, here's a look at a few top stock trades now. Top Stock Trades for Tomorrow No. 1: Amazon (AMZN) Click to Enlarge Source: Chart courtesy of StockCharts.comAmazon (NASDAQ:AMZN) has been trading very bullishly over the past few weeks. The company continues to realize positive developments, and that hasn't slipped past investors.Shares hit new all-time highs this month and trade near them just ahead of earnings -- not unlike Netflix (NASDAQ:NFLX). The question is, will it follow Netflix's path and trade lower after it reports on Thursday after the close?InvestorPlace - Stock Market News, Stock Advice & Trading TipsIn order for the good times to last, AMZN must clear $2,450 and close above this mark. More impressive would be a move north of $2,500 though. * 7 Stocks That Still Need Greater Government Stimulus On the downside, a break of uptrend support (blue line) would be discouraging. However, losing the $2,300 mark would be a more bearish development. As long as Amazon stays above its 20-day moving average though, it's hard to get too bearish. Below puts the ~$2,200 breakout level on watch. Top Stock Trades for Tomorrow No. 2: Tesla (TSLA) Click to Enlarge Source: Chart courtesy of StockCharts.comTesla (NASDAQ:TSLA) reported much better-than-expected earnings results, and shares scorched higher as a result. However, bulls couldn't hold onto those gains.Shares opened north of $850 -- up almost 7% -- before trading up to $870 and reversing lower. Ultimately, Tesla turned negative in the session.The price action isn't the end of the world for bulls, but it's certainly a punch to the gut. From here, they can risk a bit more downside before things potentially get ugly. First, let's see if the 10-day moving average provides a lift. This level has been acting as support this month and so far, the stock remains above it.Below that puts $700 and the 20-day moving average in play. While this area should be decent support, a drop below risks an even further move lower. Remember, Tesla stock can be a big mover -- in both directions. Top Stock Trades for Tomorrow No. 3: Gold ETF (GLD) Click to Enlarge Source: Chart courtesy of StockCharts.comGold has looked good at various times this month, but stalls out every time it seems to get going. Above is a look at the SPDR Gold Trust ETF (NYSEARCA:GLD).In February and March, the GLD found resistance in the $158 to $160 zone. After breaking out over this level in April, it has been acting as support. With Thursday's action though, this level is looking suspect.For now it has given the GLD a bounce, but it's falling below uptrend support (blue line) and the 20-day moving average. A move back over $160 would help the bulls tremendously right now, as would a rebound up to $164, the current high. * 3 Video Game Stocks to Buy A move below current support puts $156 followed by the 50-day moving average in play. There are lot of gold bugs in this one, so if it begins to break down, it could lead to more selling as longs bail. Top Stock Trades for Tomorrow No. 4: McDonald's (MCD) Click to Enlarge Source: Chart courtesy of StockCharts.comMcDonald's (NYSE:MCD) opened lower but is rallying off the morning lows after reporting earnings. The stock was forming a tightening wedge coming into the report (blue lines).It was inevitable that MCD was either going to break out -- likely sending it to its 200-day moving average -- or break down. For now it's the latter, although buyers have been stepping in. They did so near $180, where McDonald's has its 20-day and 50-day moving averages.A move back below these marks puts $170 in play. If shares can reclaim the April high at $190.41, a move up to the 200-day moving average is possible.Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell. As of this writing, he did not hold a position in any of the aforementioned securities. More From InvestorPlace * America's 1 Stock Picker Reveals Next 1,000% Winner * 25 Stocks You Should Sell Immediately * 1 Under-the-Radar 5G Stock to Buy Now * The 1 Stock All Retirees Must Own The post 4 Top Stock Trades for Friday: AMZN, TSLA, GLD, MCD appeared first on InvestorPlace.