Even though the boring doldrum that is summer trading came to an end, September kicked off to a slow start with low volume. Having Labor Day and Rosh Hashanah right after another at the start of the month didn’t help things, either.
And while September trading didn’t start with a bang, there are still many opportunities coming our way as volatility reenters the stock market.
BUT before we can cash in on those opportunities, I see some long-term stocks to watch in September — for good and bad reasons.
But mostly bad…
The travel sector and airline stocks are an obvious low-hanging fruit trade.
Airlines were expecting a big uptick in business travel post-Labor Day. Airliners assumed that workers would return to their offices and business travelers — like WealthPress Senior Strategist Roger Scott and I — would end their summer vacations and go back into the air.
Guess what? Neither of those things happened.
Say ‘No’ to Airliners, and Other Long-Term Stocks to Watch in September
The resurgence of COVID-19 and the delta variant encouraged employers to keep their doors closed, and business travelers to stay grounded.
And since airliners hadn’t priced in another COVID-19 outbreak, remaining profitable in the third quarter is unlikely.
I do, however, like bank stocks right now. I expect an explosive increase in rates coming soon, and a lot of traders are going to be caught offside when this shocking move happens.
And I have a bold prediction…
We’re going to have a move of 30 or 40 basis points higher on the 10-Year Treasury yield within a few weeks.
When that happens, a lot of investors and stocks are going to get beaten up… But bank names will end up ripping higher along with interest rates.
And to my fellow traders who like to have a diversified portfolio, you already know about Tuesday’s cryptocurrency flash crash, which had me steamed — watch my video about it here.
On Tuesday, we had a crypto flash crash that saw Bitcoin fall about 10%, Ethererum sink about 15% and Altcoin tank around 25%.
Before anyone jumps to conclusions, my problem isn’t with crypto selling off — it’s always volatile like this.
My problem is with Coinbase.
And I have a couple of reasons why every trader out there should short Coinbase as the perfect hedge against crypto…
Learn more about the long-term stocks I’m watching in September and shorting Coinbase by watching our video below!
As always, send any trading questions to jeff@joyofthetrade.com and stay ahead of the markets, especially these choppy ones, by subscribing to our YouTube channel.
