Harbor Freight, it’s where you go when you need a cheap tool that you can expect to just throw away after a single use.
Hell, if I know I need a hammer but all I can find is a wrench in harbor freight, guess what I’m going to buy. A wrench, and use it as a hammer, because it will get the job done and I know the hammer would have also broken anyway.
There is a special harbor freight section in the market that can trade in from time to time. Right now is the time. We know these stocks have been whittled away and we are going to be able to get those cheap stocks, take them for one fun ride, then toss them to the side and take our profits.
Some Stocks You Can Find In The Harbor Freight Section.
Over the last month or so the market has seen investors go to the Harbor Freight section and for good reason. Over the last month QQQ is up right around 10%. I’m sure you typically would expect companies like Amazon and Microsoft to be the big movers even during a bear market that caused this jump to happen.
Let’s take a look at the top performers for the past month so we can see that really isn’t the case.
Look at that, MRNA up 30%, TCOM up 25%, QCOM up 21%, and ORLY up 17%. How are names like these the top performers in the NASDAQ 100 be names like this…?
Just like harbor freight tools, you don’t buy stocks like these to keep for a lifetime, you buy them for a good time. You are going to get them use it for a few weeks then throw it out.
Where can you find the stocks in your parent’s portfolio?
Where are those big companies we talked about earlier? They are much further down the list with amazon only yielding around 11% and Microsoft only a measly 4.8%.
This tells us a lot about how investors feel right now. Mostly they are refusing to put their money out for Snap-On right now, they stopped going for the big players of the market.
These smaller companies that have been beaten down are the ones people are scooping up because they are cheap, they do the job of making them money, and they won’t feel bad when they toss them in the trash and move on. This is the tail that wags the dog that is the market.
When you get into the meat of the group, the ones that are preforming the same as the ETF you get names like DOCU, AMD, ATVI, and even MSFT they are just following the wake of the market.
Where do we go from here?
Right now, we are seeing much of the same from the market. Herding cats, these companies are getting driven up by investors because they need something to trade that they can make a quick buck from. On this list there are a few companies that I do like that we should keep an eye on for the next few weeks.
First on my list, Costco. It is a stock that I would consider inflation resilient. People are going to go for the deals, save the money, buy in bulk. Investors know this so the company’s revenue shouldn’t be affected much. I would expect to see some growth from them in the coming weeks.
Apple, I know Apple what a surprise…. But seriously, I’m expecting Apple to move towards that $125 mark and when it does you can bet your bottom dollar that I am going to be considering making a move on the stock.
And one of the more surprising ones on my list is FOX CORP. media tends to do well, and here is your inside track. When we kick off the 2024 presidential cycle and you are looking to hold a stock, start looking at some of these media companies. They tend to always do well during that time.
Of course, if you don’t want to mark your calendar for it, or you don’t know how to trade it, you can always follow me.
Tell you what take advantage of my new Night Trader offer for 6 months. It at a 68% discount right now and I know that if you follow me for those 6 months, youll be able to use your profits to stick around and be there when these moves start to happen.
Quantitative Specialist, Penny Hawk
July 22 2022