☕ Warren Buffett bought the dip and I hope you did, too

Good morning! 👋

All three indices are running around like a headless chicken today which is par for the course lately. Down one moment, up the next. 

As always, don’t overthink things. 

Keep it stupid simple! 

1. Rates are coming down and that’s a tailwind over time. 
2. Key areas of the economy continue to accelerate, which means there’s still tremendous opportunity in segments like AI, chips, customizable medicine… anything that’s got what I call digital spillover. 
3. Worldclass stocks are being put “on sale” by the fast-money crowd at moments in time even though the business case for owning ‘em gets stronger by the day over time. 

LowBall Orders are particularly effective in volatile, uncertain conditions like we have this week, especially around the holidays. 

If you’re not familiar with LowBall orders, I encourage you to learn about and use ‘em. 

LowBalls are a form of limit order that allows you to stipulate that you’d like to buy or sell ___ shares of a particular stock at, above or below specific prices. You can also use ‘em for ETFs, funds, etc. 

Using ‘em helps take away Wall Street’s edge while also ensuring discipline, another bonus. 

It’s no longer enough in today’s world to buy great stocks.  

Knowing “how” can give you a real edge! 

I hope you’ve got this covered but if not and you’d like to learn more, I'll be here if you need me. 

Meanwhile… 

Here’s my playbook. 

1 – Warren Buffett bought the dip, and I hope you did, too 

CNBC is reporting that Unka Warren did some Christmas shopping early and bought shares of Occidental Petroleum, Sirius XM and Verisign. (Read) 

Some $560M in the last three sessions apparently. 

I hope you took action, too. 

You make your money on down days, not chasing things.  

2 – FedEx’s Hail Mary 

FedEx just announced that the company has decided to separate FedEx Freight into an independent, publicly traded company within the next 18 months. (Read) 

Shares are up this morning because people are thinking this is a smart move. 

Reeks of desperation to me. 

The world is going digital and nothing FedEx can do will change that. 

Putskies, short or avoid. 

Keith’s Investing Tip: People inevitably tell me, “but FedEx (or XYZ) is a great company” when they hear me say stuff like this but investing isn’t about great companies. It’s about great profits which is why you constantly want to ask yourself what “else” is out there whenever you see a once great name struggle because the world is shifting out from under it… then invest accordingly!  

3 – Novo Nordisk: weight a minute 

Novo Nordisk shares are down 24% as I type after the company reported disappointing late-stage trial results of its experimental weight-loss drug, CagriSema. (Read) 

It’s one of the worst daily losses in the company’s history. 

I have no interest in investing (because I prefer a few other choices with considerably bigger, broader medical potential imho) but the trader in me is thinking a few ATM call options might be in order.  

The 2-day RSI has gotten slammed which, when combined with a spike in volatility, is often a quick 1-2 day trading opportunity when Wall Street’s computers identify the opening. 🤔 

4 – The “problem” with IonQ 

Shares are up another 14.72% and climbing today as I type. 

Honestly, that’s frustrating. 

Why? 

Because I probably don’t own enough shares. 🤦‍️ 

Keith’s Investing Tip: Playing catch up with a stock you want to own is far more common than you’d think. Every investor – including me – will wind up having to do it now and then. The key is to keep your emotions out of the equation by making small measured moves rather than going “all in.” If you know how to do that and are getting the results you want, fabulous! If not, you may find One Bar Ahead® helpful. OBAers tell me it’s changed their lives – an absolute honour. 

5 – Will the strike impact Amazon’s stock? 

Employees from seven facilities in New York, Georgia, California, and Illinois walked out on Thursday, demanding better wages, benefits, and working conditions. (Read) 

Shares are about flat. 

That tells me traders don’t give a rip because they don’t see an edge. 

Me neither. 

I just hope I “see” a few packages soon. 

I’d also like to see $200 a share over the next few weeks because I’m in a LowBall kinda mood this morning. But that’s just me. 

Bottom Line 

People ask me about hot stocks frequently.  

That's the wrong question.  

Ask yourself which stocks will be there when you need 'em and work backwards. It's a very short list. 

As always, let’s MAKE it a great day – you got this! 

Keith 😀