Investors need to tread increasingly carefully as stock markets continue to unwind the interest rate cut pivot story. U.S. interest rates will remain above 5% for the foreseeable future, strengthening its currency.
The Chinese Internet ETF (KWEB) is a hot stock after peaking at $27. Expect sellers to send the ETF back down to $23, hurt by a weak Renminbi against the U.S. dollar. Alibaba (BABA) continued its downtrend for four straight sessions. It fell from over $75 to $69.61. Sellers are giving up despite the low price-to-earnings ratio of 12.7 times. Search giant Baidu (BIDU) is equally unattractive. The “Google” of China closed at $96.12.
Trump Media (DJT) announced yesterday the launch of a video service. This failed to scare away short-sellers, who hold a 14.84% short float against the stock. DJT stock peaked briefly at $79.38, held over $70 for a few days, and closed at $22.84 on Tuesday. Avoid DJT stock.
Medical Properties (MPW) spiked above $5.00 only to retreat. Trade the uptrend. The REIT announced a 15-cent per share dividend. Additionally, it expects to exceed its $2.0 billion liquidity target. In 2024, the firm generated $1.5 billion from selling assets and securing debt.
Miners Vale (VALE) and Barrick Gold (GOLD) are on the bear list. Avoid Vale until sellers capitulate. Barrick lost 5% after posting only 940,000 ounces in gold output, below the expected 984,000.