🌐 The Best of Both Worlds

Plus, how investors from "Big Short" fame view gold.

Hi All - Happy Wednesday,

We are going to continue offering polls this week to gather your thoughts on “The Midday Trade” and help us make a decision on how to move forward with it.

There are 3 Days left to give us your feedback, and any input is greatly appreciated!

What did you think of "The Midday Trade"?

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With that out of the way, here's a snapshot of where markets ended the trading session, plus tomorrow's trade idea delivered to you today.

  • 🟩 | US Stocks Rose on Wednesday. All three major indexes rose, and the S&P 500 notched its best day since February as Powell pointed to a potential September rate cut.

  • 📈 | One Notable Gainer: Shares of Texas-based power company Vistra surged 15% after the Nuclear Regulation Commission approved its request to continue operating the Comanche Peak Nuclear Power Plant.

  • 📉 | One Notable Decliner: CBIZ’s stock tumbled 19% after announcing it agreed to acquire Marcum in a $2.3 billion deal, which would make it one of the largest US accounting firms.

  • 🌐 | Tomorrow's Trade: The Best of Both Worlds. Scroll down for more.

Plus, where will the gold come from to satisfy the explosive and sudden global demand? Scroll down to see more.

YESTERDAY’S POLL RESULTS

🟩🟩🟩🟩🟩🟩 Take profits

🟨🟨🟨⬜️⬜️⬜️ Tax purposes

🟨🟨🟨⬜️⬜️⬜️ Something else

S&P 500 Heatmap. Credit: Finviz

All Stock Heatmap. Credit: Finviz

Global ADR snapshot. Credit: Finviz

MARKET MOVERS

NVDA (+13%) Nvidia’s stock rose after Nancy Pelosi disclosed that she bought more shares, and semiconductor company AMD reported strong earnings (SA)

MTCH (+13%) Tinder parent company Match Group posted Q2 revenue of $864 million, above the $856.5 million Wall Street analysts had projected (Benzinga)

PYPL (+3%) Bernstein analyst Harshita Rawat upgraded PayPal to outperform due to improving gross profit trends and product momentum (CNBC)

BA (+2%) Despite reporting that its core operating loss has tripled to $1.4 billion from a year ago, Boeing’s stock rose after announcing a new CEO (CNN)

HUM (-11%) Shares of health insurer Humana fell after reporting an earnings beat as its full-year guidance fell short of expectations (Barron’s)

TOGETHER WITH THE CALIBRE

There is huge potential for a new precious metal-backed currency colliding with the West’s colossal fiat-based debt obligations (over $32 TRILLION in the US alone)... 

Which could spark a new global surge in gold demand. 

And so, the question investors want to know is…

Where will the gold come from to satisfy the explosive and sudden global demand?

Here’s the answer >>> Click Here.

By clicking the link above you agree to receive this special offer from Tips for Traders and also receive the “Tip of the Day” Newsletter.  To see the privacy policy, tap here.

OVERHEARD ON THE STREET

CNBC: Delta CEO Ed Bastian said the IT outage caused by CrowdStrike cost the airline $500 million.

CNN: Taco Bell is set to expand the use of artificial intelligence voice technology in its drive-thrus to hundreds of US locations by the end of this year.

The Verge: Audi is making electric versions of its popular midsize sedans and performance variants, the A6 and S6.

CNBC: More automaker news… Ford Motor has redesigned its Maverick pickup truck, adding new performance and hybrid options to the vehicle.

Reuters: Citigroup repeatedly breached a U.S. Federal Reserve rule that limits intercompany transactions, leading to errors in its internal liquidity reporting.

TOMORROW’S TRADE IDEA, TODAY

This Type of Car is Gaining Traction

Plug-in hybrids, cars that can run on battery power and gas, are becoming increasingly popular. 

PHEV sales are up 50% year-over-year across the world, while EVs have only risen 9%. This is largely thanks to China’s car market, where PHEV sales grew 70% year-over-year. The “best of both worlds” cars now account for 42% of Chinese new-energy vehicle sales. 

This could be bad news for companies and investors counting on increased demand for batteries and the materials required to manufacture them.

Rising Popularity

PHEVs have a main attraction for buyers: They help quell the “range anxiety” that comes with pure EVs. This is the fear that an EV won’t be able to go the distance for a longer trip. PHEVs dash this fear, all while saving on fuel costs. Owners can use the cars’ EV capabilities for day-to-day driving and the gas engine for longer journeys. Not to mention, they’re cheaper than EVs.

An extended-range EV is also in the mix. It uses a combustion engine to charge its electric motor to go the distance. According to JP Morgan (JPM), these and PHEVs could account for 60% of Chinese new-energy vehicle sales by 2030.

Big News for BYD

Chinese automaker BYD is a leader in the PHEV race. Its hybrid Qin Plus Sedan starts at around $11,000, pricing lower than comparable gas-powered models.

Plus, BYD’s cars have some serious range. The company announced that its new PHEVs could drive over 1,300 miles (roughly the distance between NYC and Miami) with a full tank and full battery.

BYD’s long-range hybrid cars are seeing significant demand in developing countries with inadequate charging infrastructure. For example, Brazil is a major market for BYD’s PHEV exports.

PHEVs have often been considered a transitional technology inherently inferior to pure EVs. But with BYD's success, especially in its long-range models, PHEVs deserve a serious reevaluation.

Are you bullish or bearish on pure EV sales over the next 10 years?

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TOGETHER WITH THE CALIBRE

There is huge potential for a new precious metal-backed currency colliding with the West’s colossal fiat-based debt obligations (over $32 TRILLION in the US alone)... 

Which could spark a new global surge in gold demand. 

And so, the question investors want to know is…

Where will the gold come from to satisfy the explosive and sudden global demand?

Here’s the answer >>> Click Here.

By clicking the link above you agree to receive this special offer from Tips for Traders and also receive the “Tip of the Day” Newsletter.  To see the privacy policy, tap here.

ON OUR RADAR

ABC: The DC attorney general attorney sued StubHub, accusing the ticket platform of advertising low prices and then ramping up prices with extra fees.

NPR: Boar's Head recalled 7 million more pounds of deli meats tied to the listeria outbreak.

Motley Fool: The bottom 50% of Americans, in terms of net worth, only own 1% of stocks, which is worth $41 billion.

Motley Fool: The other side of the coin… The top 10% of the wealthiest households in the US hold 86.9% of stocks, which have a value of $34.7 trillion.

YF: Investors should be scooping up more gold for the long haul, according to investors of "Big Short" fame: Danny Moses, Porter Collins, and Vincent Daniel.

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