Posted on December 7, 2020
The market’s stretched.
Sentiment is as bullish across the board as we’ve ever seen it.
Main Street, Wall Street, Letter writers (like us), Hedgies, everyone…
They’re all in.
And that doesn’t bode well.
We have a situation now that’s just waiting for a catalyst to spark the selling.
And what might it be?
Not likely; it’s already baked in .
It’s a longshot, admittedly, but we’re growing more and more convinced that…
Well, let’s put it this way –
We’ve a hunch the current President is going to announce his re-election to the office of Chief Executive in the coming weeks.
And when that happens, the rumbling and cacophony that ensues is going to make Jericho’s collapse look like a weekend Pop Warner contest.
Our trade today is based on Broomfield Colorado’s Ball Corp. (NYSE:BLL), beverage packagers extraordinaire, whose stock has looked downright space-age-bloated of late.
If we get that above-mentioned pullback, Ball stock will roll like the dice back at Jackie Schwartz’s Feather and Lace Club in Canarsie.
Before we turn to the charts, though, take a gander at the following fundamental numerage –
Nothing here to write home about.
Breakeven is $91.70 (2.6% below the current stock price of $94.16).
With kind regards,
Hugh L. O’Haynew