With the first week of August fully behind us now, I’ve compiled a short list of stocks to watch in August of 2021…
But first, let’s recap what happened on the market this week.
I discussed the earnings I was interested in seeing on Monday. And I was particularly interested in Alibaba — which is down 16% this year.
Earnings, as you already saw this week, ended up fragmented with both big winners and losers.
Online retailers like Etsy (and Amazon) beat expectations with its second-quarter earnings report.
However, the stock plunged Thursday after it reported because of the guidance the company gave for its current quarter outlook.
It suggests the COVID-19 pandemic that fueled the wave of online shopping might be stalling out, as more people are returning to physical retail stores.
BUT it’s important to remember that the Delta variant is still running amuck, and online stores will continue to have a steady income for the time being — keep this in mind when trading e-commerce stocks next week.
On that note, these aren’t the only stocks to watch in August of 2021.
What Stocks Investors Should Watch in August 2021
I’ve been harping on Alibaba Group Holding Ltd ADR (NYSE: BABA) for a long time, and for good reason: The Chinese government won’t stop targeting its own tech companies anytime soon.
That’s exactly why the reaction to Q2 earnings for BABA was so muted on the stock market.
And to the investors who are seeing China stocks go down 30% and saying this is the opportunity to go in on the trade — DON’T.
China Evergrande Group (OTCMKTS: EGRNF) — a huge commercial real estate company and China’s second largest property developer by sales — is crumbling, with its bonds trading under 30 cents on the dollar.
If that weren’t alarming enough, then this is: The face value of Evergrande bonds lent out to other investors has almost doubled since June — now almost $400 million.
This can only mean bad news for the collapsing China stock market, and an omen for the U.S. financial market…
Check out my short video below to learn more about which stocks investors should watch in August of 2021.
I also discuss how our infrastructure trade held up this week, and why the reinflation trade is about to go stale.
Be sure to share your thoughts in the comments section below.
And 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.
