[Charts] Fanboys Win, Zoomsgiving Loses

Lou Basenese

Friday, November 26, 2021

It’s Friday in the Trend Trader Daily Nation...

That means it’s time to add some excitement to our usual word-based investment analyses by ushering in a handful of charts.

If nothing else, charts make it a whole lot faster to digest new information, make some investments — and then get on with the weekend!

With that in mind, today I’m featuring the only stock you can comfortably buy on every dip, as well as a group of dumpster-fire stocks you should avoid at all costs (or consider shorting).

So let’s get to it…

Apple Fanboy for Life

Laughed off of a TV show?

Yep, it’s been happening to me since 2014 — every time I tell investors to buy the dip in Apple’s (AAPL) stock. Including in October, when shares were hovering around $140.

But I’m not about to stop saying it.

Why?

I covered the most timely fundamental reasons recently here.

But if you want to be truly overwhelmed by all the fundamental reasons, check out this site dedicated to nothing but facts about Apple, its business, and in turn, its stock price.

Or you can forget about straining your mind reading altogether, and just take a look at the pretty picture below.

As you can see, every dip is short-lived.

In fact, you’d be up about 20% since my October dip-buying plea.


(click image to enlarge)

The reason I’m bringing this up now is simple: Apple shares closed at a record high for four days in a row. And counting.

That means it’s only a matter of time before the Apple haters come out to say the stock has risen too far, too fast, which will prompt a litany of fear-mongering headlines, and in turn, a bunch of nonsensical selling.

So be ready. When the next dip comes, buy it!

But don’t dare consider buying the following group of stocks...

Stay Away from “Stay-at-Home” Stocks

Guess what? Yesterday I spent the Thanksgiving holiday with my family in person!

No more Zoom holidays for me, or for many, many other Americans.

Normal never felt so good.

Of course, I predicted this day was coming. And I’ve been telling you repeatedly to bet against the poster stock for the stay-at-home and work-at-home trend: Zoom Video Communications, Inc. (ZM).

Truth be told, I first started begging you to bet against Zoom at precisely this time last year.

Sure enough, shares are down more than 55% since then. And yet I’m convinced that another 50% decline is in store for it.

But as it turns out, Zoom isn’t the only stay-at-home stock crumbling. As you can see in the chart below, the entire trend is ending. New Covid surges or not.

Especially for the maker of overpriced stationary bikes with internet connections, Peloton Interactive (PTON). (Told ya about this one too!)


(click image to enlarge)

Whatever you do, don’t fight this trend.

Embrace it — and start (or keep) selling these stocks short.

Ahead of the tape,
Lou Basenese
Lou Basenese

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