“Stay hungry. Stay foolish” ~Steve Jobs
Welcome to today’s edition of Wall Street Connected.
2020 has been a catalyst-driven and somewhat chaotic year for markets, but with that has come opportunity for traders and investors who have been looking in the right places.
For example, despite their respective dips this past March, Tesla (TSLA) and Apple (AAPL) have both performed stock-splits, been upgraded multiple times over, and have both outperformed the S&P 500 by impressive multiples.
For those who wish to be provided with further insight, Tesla was recently listed on the S&P 500, and Apple has launched multiple new products this year despite the setbacks seen in the global economy.
Considering both Tesla and Apple are equities which are specific to the technology sector, it may come as no surprise that technology has been the hottest sector of 2020, and I believe it will be the hottest sector in the stock market in 2021 and beyond.
The catalysts behind well-established technology stocks and up-and-coming publicly traded technology companies are hard to ignore… and one could say the profit potential for 2021 and beyond could be unlimited.
To add to our thesis, the technology sector has been featured as a top-ranking sector on what we call “Wall Street’s Watchlist,” or verified financial professional research…
There’s more to look forward to in the technology sector than simply Tesla and Apple, however.
In 2020 alone we’ve witnessed smaller technology stocks such as Nio Inc (NIO), Snapchat (SNAP), Pinterest (PINS) and Workhorse Group (WKHS) increase by 100% or more… on the stock.
But many of the best traders in the world are too intelligent to be trading stocks these days, regardless of their bullish or bearish stances on individual securities.
There is a low-risk and simple way to leverage your money when trading which can give you a significantly higher return on your money than buying or shorting stocks.
And this can be done in a shorter amount of time with less capital required to make your moves.
This trading vehicle is options, and the details we’ve mentioned are part of why our featured trader actively trades options.
With the impressive moves which have taken place in the technology sector in 2020, it may come as no surprise to you that some of 2020’s highest-yielding swing trades have been made by trading stock options on technology stocks.
Technology stocks can also be found in the semiconductor industry, which you’ll notice is ranking #7 in top searched industries by financial professionals…
Here are some highlights from FA searches this week…
|RANK||TOP INDUSTRY (EQUITIES) BY FAs (Total Traffic) – This Past Week||TOP INDUSTRY (EQUITIES) BY FAs (Surging Traffic) – This Past Week||TOP SECTORS/CATEGORIES (ETFs) BY FAs (Total Traffic) – This Past Week||TOP SECTORS/CATEGORIES (ETFs) BY FAs (Surging Traffic) – This Past Week|
|1||Biotechnology||Residential Construction||Equity – Large Cap Growth Equities||Equity – Inverse Equities|
|2||Software – Application||Gambling||Equity – Leveraged Equities||Equity – Building & Construction|
|3||Auto Manufacturers||Communication services, misc||Equity – Technology Equities||Equity – Emerging Markets Equities|
|4||Conglomerates||Special industry machinery, misc||Equity – All Cap Equities||Bond – Total Bond Market|
|5||Drug Manufacturers – Specialty & Generic||Waste Management||Equity – Health & Biotech Equities||Equity – Mid Cap Growth Equities|
|6||Software – Infrastructure||Services-Personal Services||Commodity – Precious Metals||Equity – Europe Equities|
|7||Semiconductors||Medical and hospital equipment||Equity – Alternative Energy Equities||Volatility – Volatility|
|8||Residential Construction||Turbines and turbine generator sets||Equity – Consumer Discretionary Equities||Equity – Foreign Small & Mid Cap Equities|
|9||Internet Content & Information||Services-Motion Picture Theaters||Volatility – Leveraged Volatility||Multi-Asset – Diversified Portfolio|
|10||Diagnostics & Research||Specialty Business Services||Equity – Small Cap Growth Equities||Equity – Foreign Large Cap Equities|
|11||Specialty Retail||Utilities – Diversified||Equity – Materials||Equity – Transportation Equities|
|12||Electrical Equipment & Parts||Ordnance & Accessories, (No Vehicles/Guided Missiles)||Equity – Energy Equities||Multi-Asset – Small Cap Blend Equities|
|13||Consumer Electronics||Motors and generators||Volatility – Volatility||Equity – All Cap Equities|
|14||Internet Retail||Motion picture and video production||Equity – Industrials Equities||Volatility – Leveraged Volatility|
|15||Scientific & Technical Instruments||Industrial Metals & Minerals||Equity – Large Cap Blend Equities||Commodity – Commodities|
|16||Specialty Chemicals||Subdivisers and developers, misc||Equity – Asia Pacific Equities||Equity – Small Cap Value Equities|
|17||Aerospace & Defense||Real Estate||Equity – Financials Equities||Alternatives – Long-Short|
|18||Entertainment||Business Services||Equity – Global Equities||Bond – High Yield Bonds|
|19||Oil & Gas E&P||Computer integrated systems design||Commodity – Oil & Gas||Currency – Currency|
|20||Medical Devices||Oil & Gas Refining & Marketing||Commodity – Leveraged Commodities||Commodity – Oil & Gas|
What Traders Are Watching:
What Traders Are Reading:
If you celebrate, I’d like to take this opportunity to wish you and yours a Merry Christmas and thank you for being a loyal reader.
P.S. Some traders America’s Options Trader works with have been counting money hand-over-first in 2020. Could you do the same for yourself? It’s possible if you study these key pillars.