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Suez Canal, Robinhood IPO, and BBT This Week

By Andrew Aziz  |  
Andrew's Newsletter  |  
Mar 29, 2021

As of Sunday, the Suez Canal is still being blocked by the notorious Ever Given ship.

Several memes posted on Twitter last week explained how to go about solving this problem. According to memes, it should be easy. I don’t understand why it is taking so long for the Egyptian authorities to fix the issue.

Robinhood is getting ready to IPO.

One of the most talked about IPOs of 2021 is going to be none other than the controversial trading firm Robinhood. The trading app is confidentially filing for an IPO and is aiming for this quarter or the next quarter. There was certainly some drama when their payments for order flow were exposed! Our production team at Bear Bull Traders has made a fantastic short video explaining what happened with them and the notorious coup d’état on Wall Street involving GameStop ($GME). The video also discusses what all of that could mean for the retail industry moving forward. Watch our video HERE.

Will Peter trade Robinhood? Would any investor be interested in Robinhood?

Value stocks vs. growth stocks: the fight continues. The technology sector has seen one of its worst sell-offs in a long time over the past few weeks, with many of the tech companies now entering bear market territory. This kind of sell-off in the market starts begging the question: Are we seeing the tech bubble burst? Is this similar to what happened in 2000? I had our team of analysts at Peak Capital Trading take a look at the data and their findings were interesting.

Value stocks are usually associated with a low P/E, a low price/cash flow, and a high dividend yield. Many Dow Jones Industrial Average stocks are considered value stocks. Growth stocks are the exact opposite. They are considered expensive measures by a variety of metrics. Many tech stocks are considered growth stocks, that is why QQQ (the Index includes the 100 largest non-financial companies listed on the Nasdaq) was under such selling pressure in the last few weeks. These stocks generally do not pay dividends, as the companies usually want to reinvest any earnings in order to keep growing at certain rates. Value and growth investing are opposing strategies. After the dotcom bubble burst in 2000, value stocks in general outperformed growth stocks for over 10 years. After that, however, we saw a huge outperformance toward growth stocks. The graph above tracks the growth index over value stocks for the past 20 years. Is value making a comeback?

This week at Bear Bull Traders we are presenting several important webinars. They all start at 8pm ET and they will all be recorded for later viewing by our Elite members:

Monday Technology: Onboarding and Technology Classes by Carlos, Mike, and Kyle

Tuesday Strategy: When to Transition to Live Trading or When to Return to the Simulator with Mike

Wednesday Psychology: Defining Yourself as a Trader with Mike

Thursday Mentorship: Our week of webinars will wrap up with Thor hosting his famous mentorship session

As always, on Monday, Carlos, Mike, and Kyle will lead the onboarding class for new and existing traders. They’ll walk you through our community and give you lots of great advice on how best to set up the technology required for active trading.

Tuesday, Mike Baehr, our Chief Training Officer at Peak Capital Trading and Director of Education at Bear Bull Traders, will be speaking about when to transition to live trading and when to return to the simulator. The first major decision a new trader will make is when to transition to live trading. Along with this significant decision comes anxiety over the unknown, including the fact that their trading platform won’t be precisely the same, there will be changes to Hotkey routing, and their broker will no doubt be charging additional fees. The next decision that a new trader will face, and it’s sadly at times neglected until it’s too late, is whether or not to return to the simulator when the (usually) inevitable losses begin to accumulate. You won’t want to miss this informative presentation.

For Wednesday, Mike will be back with his first psychology module, Defining Yourself as a Trader. The process of becoming a successful trader begins with you, so learning what and how to evaluate your performance is vital. In this module, you will embark on a journey which explores the challenges of trading, self-evaluation, and how to determine what type of trader you may be. You’ll start to gain an understanding of your personality traits and you’ll learn how to embrace the trading style you are good at instead of the trading style you want to trade.

And lastly, a week is never complete without our amazing Thor mentorship sessions on Thursdays. Each week, Thor reviews some of the (literally) exceptional trades he has made. I definitely cannot wait to learn from him again! Just by attending one “Thorsday” session, you will see why Thor is both such an incredible trader and such an incredible asset to the Bear Bull Traders team.

Please note that this week is a short trading week since Good Friday, April 2, is a statutory holiday and the market is closed.

Thanks for reading this newsletter. As ever, I can be reached at [email protected]

To your success,