As concerns around a new strain of the coronavirus have grown in recent days and the COVID relief bill has dragged on, investors took a breather yesterday from the all-time highs they’d set last week. The benchmark S&P 500 index found itself down more than 2% at one point while the Dow Jones fell close to 500 points, and Wall Street’s fear index, the VIX, jumped to its highest levels since the start of November. Investors have grown somewhat accustomed to equities taking a fairly smooth course north, so the bit of weakness that popped up surprised them.
Dips like this though, even if they’re not long-lasting, can often open up a good entry point in a stock you’ve been stalking and a few such names popped up yesterday. Buying on the dip can often bring additional risk but with that comes appealing upside reward.
Friday saw shares of Las Vegas-based hotel group MGM hit their highest levels since being smashed by the coronavirus pandemic back in March. They’d rallied more than 30% since early November but as fears grew around a new strain of the virus in recent sessions, shares understandably became a little less attractive. Though shares caught a bit into yesterday’s close, at one point they were down more than 5%. Much of MGM’s stunning recovery has been based on the premise that the worst of the economic fallout from COVID-19 has already come to pass.
However, investors with a long term view would do well to take a look at the momentum that MGM is taking with it into 2021. Already we’ve had experts announce that the new strain will still be susceptible to the new vaccine which seems to have allayed concerns for the most part. There’s every chance MGM stock will still finish the year up more than 400% from the lows of Q1 and any further weakness should be considered a buying opportunity.
After a breathless five months that saw them rally more than 80% through the end of August, shares of Mastercard have taken the foot off the gas and traded sideways for much of the four months since. Wall Street seems to be taking a ‘wait and see’ approach as economies continue to reopen and spending habits edge back towards normal.
But shares still found themselves down close to 4% at the low point before being quickly snapped up. There’s a strong underlying bid to be found in Mastercard shares around the $325 mark which is where they’ve found support numerous times since August.
Earlier this month, management felt confident enough to raise their dividend by 10%; a move that’s typically considered to be among the strongest buy signals management can give. If shares dip again towards the $325, it should be an easy enough decision to pick some up.
A 2.8% drop yesterday was enough to make shares of eBay among the poorer performers in the S&P 500 index. After a great summer, they seem to have lost their mojo and are in danger of slipping into a downtrend. It’s a bit of an underwhelming end to the year for the original e-commerce giant but that’s not to say there isn’t an opportunity.
Shares had been climbing steadily higher into last week from their most recent dip in early November. They’ve now cooled a bit since then and with yesterday’s dip are down 7% in the past week. But this is a stock with tremendous upside waiting for them in 2021.
As Credit Suisse affirmed earlier this quarter, eBay is well on their way to becoming the seller platform of choice and market leader. A $70 price target should have investors licking their chops as that suggests an upside of nearly 40% from yesterday’s close.
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7 Cryptocurrencies That Are Leading The Market Higher
An Influx Of Capital Is Driving Cryptocurrency Higher
There is an influx of money to the cryptocurrency market that is driving the entire complex higher. Not only is institutional interest peaking but recognition and use are on the rise as well. With Bitcoin setting new all-time highs 100% above the 2017 highs the number of new Bitcoin millionaires is on the rise too.
But Bitcoin is not the only cryptocurrency on the market today by far. The number of cryptocurrencies on the market has been growing steadily with more than 4,000 listed on Coinmarketcap alone. But that doesn’t mean they are all worth your time. Many if not most will not stand the test of time.
One way to judge the market’s interest in a cryptocurrency is its market performance gains. A cryptocurrency that is gaining in value is certainly one that you may want to own. The better method of judging the market’s interest in a cryptocurrency is the market cap. The cryptocurrency market is worth upwards of $1 trillion and growing, and most of that value is centered in the top seven. Together, the bottom 3,993 odd cryptocurrencies only account for 12% of the market and have yet to prove any lasting value.
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