Today is Pi Day – 3/14 – and that can only mean one thing. Jimmy Giaquinto has the day off and Brian Bolan is here to fill in. Pi day isn’t recognized by non-nerds so you probably don’t have it on your calendar like it is on mine. 3.14 are the first 3 digits in the never ending sequence of the mathematical constant.
Pi is also a favorite movie of mine, in which a nerd tries to build a model that will predict the closing prices of stocks. Of course he is driven mad and does some crazy stuff in an effort to stay alive. The movie has a great shift of chaos to order and back again throughout the black and white classic from the same guy that brought us Black Swan.
OK, enough about Pi, the movie and the date and the math thing. Let’s get to the markets and what all happened today.
Broader Markets
I wrote in Tech Innovators that today was a “chop day†which is to say that the markets bounced up and down a lot. I counted a dozen times that the NASDAQ crossed the breakeven line and that was just by 2:00 CST today.
That is the definition of uncertainty. The definition of a lack of conviction on either side of the market. The bears are still afraid they may step in front of a speed train and the bulls are reluctant to deploy more capital at these levels.
Market breadth favored the bears, as 56% of all stocks were lower on the session. The indicator I look at is the net number of new highs (subtracted from new lows) and that number is comfortably in the bullish zone (+100).
Portfolios
Tech Innovators is run by yours truly and today I added Unisys (UIS) to the portfolio. This stock is a Zacks Rank #1 (Strong Buy) and trades at a 7x forward PE. The Value Style Score for this stock is an A while the Growth Style Score is a D – and that is not what I normally go for. I like growth, but the value proposition here was just too much to pass up. Throw on top of that a huge 25% short interest position and you have a good set up for a large gain to come.
Marijuana Innovators is run by Dave Borun and he made a move today for the portfolio. Aurora Cannabis (ACB) is a Zacks Rank #3 (Hold) but it had some big news the other day with a high profile investor making an entry into the name. That is only part of the story so be sure to check on the full write up for all of Dave’s views on the stock.
TAZR is run by Kevin Cook and he likes Dine Brands (DIN) which is a Zacks Rank #3 (Hold) but has a Value Style Score of B and a Growth Style Score. Kevin notes that he likes the pullback and knows how this stock operates. This is a good sized position for the portfolio so be sure to read the test of Kevin’s thoughts.
Blockchain Innovators is run by Dave Bartosiak and today he added Safeguard Scientifics (SFE) which recently mentioned a partnership with other known Blockchain concerns. The Bitcoin stocks see all kinds of movement so be sure to check back regularly with Dave and his musing on the subject.
That is all for this guest host. Jim will be back tomorrow.
Have a great evening,
Brian
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