UPDATES: July 2018

July 24th. The clock is ticking away and for many companies the profits keep growing. I'm working on a few Covered Calls. Once again AMD comes to mind. Also CHK and AKS—some of my old standbys. Google had blowout numbers and the stock is way up. They are taking in $2 Billion a week—mostly in advertising revenue. Facebook is also doing well, with their earnings coming up. Our GDP will probably be over 4%. That's amazing. This is a good place and time to get money working for you. We're in about the middle of earnings season. Yesterday, 167 or the S&P 500 made their announcements. Earnings are up on average about 25% year over year. Thank you Mr. Trump for the tax cuts. BTW, did you notice the government is taking in record revenues—maybe we can grow out of our problems.

July 17th 2017. Time marches on and the stock market game is afoot.

  1. The big news today Netflix—NFLX. Last night they had their earnings phone call. They're making tons of money, but they missed their new subscription  numbers. The thp[ught they'd get 6 million new subscribers and they only got 5 million.
  2. The are highly profitable. The market showed the stock would be down $55. It was but soon recovered. They are developing content. I think their numbers are down because so many people are canceling because they signed the Obamas.

And in other news.

  1. Earnings are up everywhere. The tax cuts are working.
  2. You know what? The press doesn't mention it, but the government is taking in  so much more money. Maybe we can grow out of our problems. I'm a supply-sider and that's the plan. When you lower the tax rates, growth happens and we take in more money.
  3. Many companies are expecting 20% earnings growth, from a year ago.
  4. 80% of the gains come from the high-tech sector—namely FANG, FaceBook, Apple, Amazon. Netflix and Google. I wish I had more of each of these.
  5. For example, Netflix has this Predictive Software. "Oh, you like this movie, maybe you'll like this one." Many companies use this and we're all affected by it. Many others use similar programs (algorithms).
  6. There are so many good companies—so many participating in the growth and the profits—that it's difficult to choose.

Which ones do you think you'll wished you own in 10 years?

We're right at the start of earnings season. Should that be earning's season? I want to keep up on my grammar. 1. It's hard to ignore High-Tech stocks. It seems to me that they are growing and making money—and preparing to make even more. 2. Netflix was just nominated for 112 Emmys. Content is king. 3. AMZN, NFLX, GOOGL, FB, and even MSFT and AAPL are in a safe zone. Meaning they are immune for borders, Tariffs and the like. 4. Even though these stocks are at all time highs, they are still the ones that 10 years from now, you'll look back and kick yourself for not owning. 5. There are other high-tech stocks that are also in this category—like NVDA, INTC, AMD. 6. I think AMD makes a perfect Writing Covered Call Stock, so far. 7. AMZN is bumping against $1,800 per share. One other is at all-time highs but I forgot which one. I forgot to take my memory pills. 8. Disney owns HULU, again, content and streaming. 9. When AAPL gets to $195 a share, it will be a Trillion Dollar Market Cap Company. Will it be the first to hit the Trillion mark? I'm coming up with a new idea. I'll share it with you shortly.


The market is up nicely. Wash. DC is a mess. Here is something I've learned over the years. 1. We're in earnings season. It's called the summer rally, then comes the summer doldrums. Has been that way for millions of years. It's fun to watch the pundits (including some of my favorites) trying to pigeon-hole this, like it's new and special. 2. It's earnings season. 3. Companies are making a lot of money. Stocks often rally into the upcoming news. 4. BUT, then there is often a sell-off. I have no proof of this, but it just seems that about 90% of the time, they dip down in a few days. 5. It's the old: "Buy on rumors, sell on fact." 6. Remember a stock price today is based on the anticipation of future earnings. Current earnings can point the way. But, the current news, and especially the commentary, play a vital part. 7. We're buying the future. So, follow your favorites and watch this play out. If you're into options this is even more important. These options expire, adding a new level of risk.

Stock MarketWade Cook