Joe Cotton: Take a close look at the stock market and love mining Hut 8 as your top choice of stocks
Market Assessment – As of Saturday, January 1, 2022 at 7:54 p.m.
Over the past two weeks, the DOW has risen sharply, around 1000 points. It surprised me because of all the recent negatives: high inflation, a new COVID pandemic, critical shortages of Covid rapid test kits, and the distinct possibility of interest rate hikes.
The DOW sold out late Friday and lost over 100 points in the last half hour… and BIG Tech was weak. We will continue to sell high priced, high PE stocks which are vulnerable to a steep decline. We would sell Apple (AAPL) 177.57, Amazon (AMZN) 3334.34, Google (GOOG) 2893.59, Nike (NKE) 166.67, United Health Care (UNH) 502.14, Align Tech (ALGN) 657.18, ServiceNow (NOW) 649.11, Mesa Labs ( MLAB) 328.09, Intuitive Surgical (ISRG) 359.30, Etc., Etc., Etc. However, it looks like 2nd and 3rd level stocks that have gone through long downward corrections are starting to pick up. CAUTION IS ADVISED …
Our “Action of the Week” is Hut 8 Mining Corp. (HUT) $ 7.85. It operates as a cryptocurrency mining company in North America. The company engages in industrial-scale bitcoin mining operations. According to an article posted on finance.yahoo.com, by the company, Hut 8 is one of the largest innovation-driven digital asset miners in North America, supporting open and decentralized systems since 2018. Located in energy-rich Alberta and North Bay, Ontario, Canada, HUT 8 has one of the highest installed capacity rates in the industry and holds more self-mined bitcoin than any miner in crypto or publicly traded company in the world.
Having demonstrated rapid growth and a stellar track record, Hut 8 was the first TSX listed miner and the first Canadian miner to be listed on the Nasdaq Global Select Market. I don’t understand Bitcoin but I like the stock chart and on Friday 12/31/21 I bought the HUT Jan 7th $ 8 CALLS. On the same day, the following brokerages launched buy quotes on the stock: DA Davidson, Canaccord Genuity and Craig-Hallum.
Joe Cotton has won three national stock picking contests with annual payout percentages above 96%. Its 2020 Wall Street Best Stock competition winner was Inovio Pharmaceuticals (Symbol INO) with a return of 742% over 1 year.
This article is not investment advice and should in no way be interpreted as investment advice. For investment advice, consult a registered investment advisor or certified financial planner. Joe Cotton’s website is www.cottonstocks.net. Joseph W. Cotton of NKY is the editor of the market newsletter, Cotton’s Technically Speaking. He is a graduate of Xavier University, former bank manager and credit analyst, and former registered investment representative of Fidelity Investments. Contact him at [email protected]