Joe Cotton: Taking a careful look at the stock market and like Hut 8 mining as top stock pick

view original post

Market Assessment – As of Saturday, January 1, 2022 at 7:54 p.m.

For the last two weeks, the DOW has moved strongly upward, about 1000 points or so. It was surprising to me because of all the recent negatives: High Inflation, A New COVID Pandemic, critical shortages of rapid Covid testing kits, and the distinct possibility of interest rate increases.

The DOW sold off Friday at the end of the day, and dropped over 100 points in the last half hour….and BIG Tech was weak. We would continue to be Selling those High Priced, High PE stocks that are vulnerable to a large decline. We would be selling 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 seems that the 2nd and 3rd tier stocks that have been in long bear corrections are starting to rally. CAUTION IS ADVISED…

Our “Stock 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. Per an article on finance.yahoo.com, by the company, Hut 8 is one of North America’s largest innovation-focused digital asset miners, 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 crypto miner or publically traded company globally.

Having demonstrated rapid growth and a stellar balance sheet, Hut 8 was the first publicly traded miner on the TSX 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 7 $8 CALLS. That same day, the following brokerage houses initiated BUY Ratings on the stock: DA Davidson, Canaccord Genuity and Craig-Hallum.

Joe Cotton has won three National Stock Picking Contests with yearly percentage gains in excess of 96%. His 2020 Wall Street’s Best stock contest winner was Inovio Pharmaceuticals (Symbol INO) with a 742% 1-Year return.

This article is not investment advice, nor is it in any way to be construed as investment advice. For Investment Advice consult a Registered Investment Advisor or a Certified Financial Planner. Joe Cotton’s website is www.cottonstocks.net. NKY’s Joseph W. Cotton is publisher of the market newsletter, Cotton’s Technically Speaking. He is a graduate of Xavier University, a former bank manager and credit analyst, and a former Fidelity Investments registered investment representative. Contact him at cottonstocks@hotmail.com