WASHINGTON – Looks like we’re in for another uncertain week for US stocks. After a weekend barrage of allegedly scary Covid Delta variant terrorism from the CDC and its CNN and MSNBC terrorist parrots, many stocks took a nasty hit Monday and Tuesday alike. The negative action was aided and abetted by the unwelcome arrival – courtesy of an open invitation from the “Biden Administration” – of the all-new, guaranteed-more-deadly Lambda Variant of Covid. Which, of course, was breathlessly reported by the media as well. (More about this in a separate article, TBD.)
Lambda rising…
This “we’re all gonna die!” Covid terrorism continues to occur every time it looks like the US economy, and particularly small businesses, seem ready to finally leave the economic ICU. There’s more on this particular Lambda Variant Covid story that we’ll cover soon. But suffice it to say that every time someone yells “Covid” on a crowded trading floor, stocks quickly head for the exits. Because shutdowns coming.
Also Read: CDC says ‘Masks on!’ Today: ‘Stocks off!’ as unsettled science zaps market
All this frantic nothingness continues to attack Mr Market even as financial pundits crow about new all-time record highs in this or that average.
Never mind…
But suddenly it all no longer matters again in Wednesday. Trading action. At least thus far, at 2:00 p.m. ET. All’s right with the world again (except for tech, of which more in a moment).
It’s exasperating. Even my beloved McClellan Oscillator has suddenly turned wishy-washy. It’s hard to know whether to buy or sell. It’s apparently “buy” right now. But more Lambda Variant Covid terrorism incoming could quickly switch this signal to “sell.”
It’s pretty confusing. But I’ll try to keep readers informed.
Fun and games with Cleveland-Cliffs
Cleveland-Cliffs (NYSE:CLF) got a nice boost Tuesday with news that the Democrats’ first Porkulus “Infrastructure” Bill got past. Meaning all steel companies, construction companies, etc., will now make money hand over fist, right? Well, maybe.
But first, all the Dems’ pet constituents and Big Money Supporters (and many union bigshots) will get their payoffs first. Then, a few pennies will go toward “infrastructure.” Whose definition these days seems similar to Bill Clinton’s claim that it all depends on what “the definition of ‘is,’ is.” I.e., whatever the left-wing Porky Pig party (and probably Mitch McConnell) say “infrastructure” is.
At any rate, CLF is selling off a bit today, as sellers, short sellers and meme traders mess around collecting short-term profits from the stock’s earlier jump. We still like the stock. Although fake news on the Lambda Variant could cause this stock to tank again, at least short term. For no discernible reason. Just because.
Enter General Dynamics
Looking for stocks to buy in a toppy market, we’ve been slowly nipping into the relatively expensive shares of commercial and Federal government contractor / manufacturer General Dynamics (NYSE:GD) recently. Not only is this large-cap behemoth HQ’d just down the street from us here in northern Virginia. It’s been improving it’s P&L statements considerably in recent quarters and could erupt upward in another quarter or two.
Priced at the moment just under $200 per share, this level is probably a good one to consider buying a share or three. (Or more if you’re a big Democrat moneybags and don’t mind boosting the country’s national defense.) It’s stuck around here for now, however, so any investor will need some patience.
And again, this is what we’re doing with some of our cash right now. It’s not a recommendation. But if your interest is piqued, it’s time to conduct your own research on this one.
The Wrap…
That’s about it for today. Nothing inspirational to report. But keep an eye on those ever-present Covid Lambda Variant headlines (Delta, too), each one guaranteed to move the market whether justified or not. This makes buy and sell points for individual holdings quite treacherous, so be on the lookout for Covid crappola, oil price and inflation stories and anything else that looks or seems scary, like anything that comes out of AOC’s privileged Marxist mouth. Each one, or all of them together can make for insane if temporary trading action in what’s left of Summer 2021.
And the media will be there to lie about or exaggerate every story, scaring us every step of the way.
Headline image link: Branco cartoon, credit Legal Insurrection. Used with permission and by arrangement. Slightly resized to fit CDN format.
