Week of January 22, 2023

“This strategy could have turned $3,000 into almost

 $7,000,000 for a staggering 240,120% gain…”

Wall Street Ends in the Green on a Much-Needed Tech Rally

On Friday, January 20th, 2023, the Dow closed up more than 300 points but still thumped to its worst week since December,  while the S&P 500 was up 1.9% and the Nasdaq 100 closed up 2.7%, backed by rallies in tech and other high-growth stocks.

Even Bitcoin got in on the action after being up 17.45% in the last 5 days and up over 39.60% according to MarketWatch.com as of this writing.

Mega-cap companies, including Meta (META), Amazon (AMZN), Microsoft (MSFT) and Tesla (TSLA) jumped between 1% and 5%. Meanwhile, Google’s parent company, Alphabet (GOOG) was up 5.3% after announcing that it will cut 12000 jobs. Netflix (NFLX) soared 8.5% amid weak earnings after reporting stronger-than-expected subscriber numbers.

*Upcoming/Expected Earnings Dates for these Mega-cap Tech Stocks:

The last year has been rough on these 6 Mega-cap companies but YTD in 2023 they are all in the green.

But given the chance, would you hop in a time-machine and go back to Thursday, March 13, 1986,time machine to pick up 100 shares of Microsoft (MSFT) when the company had its IPO? Keep reading and you’ll see why I’m asking…

If you had the fortune and foresight to pick up 100 shares of Microsoft (MSFT) on its IPO day, you would have spent just under $3,000 and would be sitting on almost $7,000,000 as of Friday (1/20/2023) when shares of (MSFT) last traded at $240.22 for a 240,120% total return. 

Earnings Alert: Microsoft (MSFT) is expected to report earnings next week on Tuesday, January 24th after the market closes. 

Microsoft (MSFT) is implementing a big round of layoffs. This is, apparently, supposed to be a sign of Microsoft showing fiscal discipline. At the same time, the company is in talks to spend $10 billion on an artificial intelligence chatbot. These developments should be a cause for concern among MSFT stock traders.

Microsoft (MSFT) is facing the same headwinds that many famous tech giants did in 2022. Hypergrowth in the wake of Covid-19’s onset in 2020 and 2021 felt good while it was happening, no doubt. 

Now it’s 2023 and Microsoft’s problems haven’t just gone away. Retrenchment was inevitable, but don’t be hasty to applaud Microsoft for demonstrating discipline. The company’s workforce reduction will come at a cost. 

Plus, Microsoft (MSFT) could soon end up spending billions on an AI platform, and that’s not in line with the whole “fiscal discipline” theme.

The reason we’re discussing Microsoft (MSFT) right now is not because of  the earnings announcement scheduled for next week – it’s because before it made its incredible 240,120% run – it was once considered a “little-known stock” that only a handful of people knew about. 

And that’s the strategy that could have turned $3,000 into almost $7,000,000.

But the chances of us seeing another 240,120% move from Microsoft (MSFT) in this lifetime is going to be slim to none.

That ship has sailed and it’s time to look elsewhere…

The same could be said about Tesla (TSLA). At one time, Tesla (TSLA) was a little-known car company — and today its founder — Elon Musk is one of the world’s richest people. 

Earnings Alert: Tesla (TSLA) is expected to announce its earnings this week on January 25th after the closing bell. 

If you’d invested $5,000 in Tesla Inc (TSLA) on June 29, 2010, today the investment would be worth: $575,086.21 (an 11,401.72% gain)

It’s no secret that identifying little-known stocks before they go mainstream can be a highly profitable strategy, as it allows investors to get in early on a company’s growth trajectory. 

This is exactly why you need to be ready on Monday morning.

New Alert: We’ve identified a little-known Biotech stock that could have an upside potential north of 1,100% within the next 12-18 months. 

In fact, one analyst has a $10.00 target on this stock and it recently just bounced off of its 52-week low price of around $.77 cents. 

We are currently preparing a full report and it will be coming your way this Monday, January 23, 2023, so you better stay tuned.

It’s good to know about Earnings Dates but don’t plan your day around them.  

This Week’s Economic Report Watch

– The S&P Global US Composite Flash PMI

– Initial Jobless Claims

–  Continuing Jobless Claims

Tuesday, January 24, 2023 09:45

The S&P Global US Composite Flash PMI

Flash PMI (Purchasing Managers’ Index) data is published by S&P Global and are early estimates of the company’s final PMI numbers. 

The Flash PMI data are published approximately one week before final PMI data each month and are typically based on 85%-90% of total PMI responses received each month.

Summary:

The S&P Global US Composite PMI was revised slightly higher to 45.0 in December 2022, up from a preliminary estimate of 44.6 and compared with November’s 46.4. 

Still, the latest reading indicated a strong decline in private sector business activity, led by sharp declines in both manufacturing and services output. 

Overall new business dropped the most since May 2020 amid a broad-based downturn in client demand, while the rate of job creation was only marginal overall and the second-weakest since September 2021. 

On the price front, inflationary pressures eased notably at the end of the year, as cost burdens rose at the slowest pace since October 2020 and selling prices increased the least in over two years.

Forecast:

Composite PMI in the United States is expected to be 48.50 points by the end of this quarter, according to several global macro models and analysts expectations. 

In the long-term, the United States Composite PMI is projected to trend around 53.00 points in 2024, according to our econometric models.

Composite PMI in the United States averaged 54.08 points from 2013 until 2022, reaching an all time high of 68.70 points in May of 2021 and a record low of 27.00 points in April of 2020. 

Thursday, January 26, 2023 08:30

Initial Jobless Claims

Jobless claims are a statistic reported weekly by the U.S. Department of Labor that counts people filing to receive unemployment insurance benefits. 

There are two categories of jobless claims—initial, which comprises people filing for the first time, and continuing, which consists of unemployed people who have already been receiving unemployment benefits. 

Jobless claims are an important leading indicator of the state of the employment situation and the health of the economy.

The nation’s jobless claims are an extremely important indicator for macroeconomic analysis. A weekly report produced and published by the Department of Labor (DOL) tracks how many new people have filed for unemployment benefits in the previous week. 

As such, it is a good gauge of the U.S. job market. For instance, when more people file for unemployment benefits, it generally means fewer people have jobs, and vice versa.

Investors can use this report to form an opinion of the country’s economic performance. But it is often very volatile data because it is reported on a weekly basis. 

The moving four-week average of jobless claims is often monitored rather than the weekly figure. The report is released Thursday mornings at 8:30 a.m. Eastern time and can be a market-moving event.

Initial Jobless Claims

The number of Americans filing new claims for unemployment benefits fell by 15,000 from the previous week to 190,000 on the week ending January 14th, the lowest in four months and well below market expectations of 214,000. 

The result further consolidated evidence of a tight labor market despite the Federal Reserve’s aggressive tightening path last year, challenging market bets that the Fed will halt its tightening path before reaching the forecasted terminal rate of 5.25%. 

The 4-week moving average, which removes week-to-week volatility, fell by 6,500 to 206,000. On a non-seasonally adjusted basis, initial claims fell by 53,582 to 285,575, largely due to seasonal factors. Notable decreases took place in New York (-17.196), Michigan (-5,540), and Georgia (-5,072).

Forecast

Initial Jobless Claims in the United States is expected to be 310,000 by the end of this quarter, according to several global macro models and analysts expectations.

Initial Jobless Claims in the United States averaged 368,000 from 1967 until 2023, reaching an all-time high of over 6,100,000  in April of 2020 during the CV global pandemic and a record low of 162,000 in November of 1968.

Continuing Jobless Claims

Continuing Jobless Claims in the United States increased to over 1,640,000 in the week ending January 7 of 2022 from 1,630,000 in the previous week.

Continuing Jobless Claims in the United States are expected to be 1,700,000  by the end of this quarter, according to several global macro models and analysts’ expectations.

Continuing Jobless Claims in the United States averaged 2,783,530 from 1967 until 2023, reaching an all-time high of over 23,130,000 in May of 2020 during the CV global pandemic and a record low of 988,000 in May of 1969.

It’s good to know these numbers but don’t fear them. We’re not afraid of a recession or bad economic reports because we’re focused on individual stock selection.

Who Made New 52-Week Highs This Week?

Here are some notable new highs as of Friday, January 20, 2023…

(A new high is recorded when a security’s price reaches its highest level in 52 weeks.)

Taking the cake this week is Ucloudlink Group (UCL) after climbing over 936% from its 52-week low.

Coming in second place this week is Transmedics Group (TMDX) after moving up over 543% from its 52-week low.

Third place goes to Yunhong CTI (CTIB) who climbed over 431% from its 52-week low.  

Fourth place goes to New Oriental Education & Technology Group (EDU) after they climbed over 426% from their 52-week low.

And rounding out the top 5 for our list of new 52-week highs is Dada Nexus (DADA) as they are up over 375% from their 52-week low. 

If you’re interested in discovery stocks that have the potential for making 936%, 543%, 431%, 426%, and 375% moves like the top 5 stocks above, then you are in luck…

Because we have been hard at work uncovering what could be the next big stock play for you.

You need to stay tuned and stay engaged because we just identified a little-known Biotech stock that could be extremely well-positioned for early 2023… 

Remember: It’s no secret that identifying little-known stocks before they go mainstream can be a highly profitable strategy, as it allows investors to get in early on a company’s growth trajectory.

We are still finishing up our research but as soon as this report is done, you’ll be one of the first to see it…

So clear your plate and get ready.

—Stay tuned for our Biotech Tech Report