“Everything is overvalued” so where will this pullback go?

May 4, 2021

Joel Elconin, Co-Host of the Benzinga Pre-Market Prep Show joins me to recap the market moves today. There’s a lot of red on the screen as pretty much everything, except for base metals and energy, are moving down. This move down is coming after a strong earnings season. Much like we saw after last earnings season 3 months ago. The key takeaway is everything is overvalued, but does it matter?

Click here to visit the Benzinga website to listen to Joel’s Pre-Market Prep Show.

    May 04, 2021 04:43 AM

    Stock market is in a bubble, needed profit taking and Yellen talked about raising rates which caused catalyst for profit taking.
    After big jobs report Friday stock market will make it’s melt up move this summer and bubble will burst this fall.

    May 04, 2021 04:14 AM

    The gold miners aren’t overvalued. Notice that GDX wasn’t able to reach yesterday’s low despite gold’s selloff and yesterday’s big gap up (best seen on an intraday chart). The low happened at an interesting level on the 60 minute chart. For stockcharts subs, here it is:

      May 04, 2021 04:19 AM

      GLD, on the other hand, did fill yesterday’s big gap and we should be happy about that since there’s little chance of a break away gap holding in GLD when compared to the much more bullish gold miners (and even they rarely leave gaps open). Again, for stockcharts subs, here’s a 60 minute chart of GLD:

    May 04, 2021 04:29 AM

    Chris Vermeulen say’s uranium stocks are in for a big correction. That is just what I needed to hear. DT

      May 04, 2021 04:36 AM

      The disaster which is impending is to be as frightening to the rich and powerful as to the foolish and unwary. That is one Doggone statement. WOOF, WOOF!

        May 04, 2021 04:09 PM

        Dogecoin (Dog-e-coin) that started as a joke about Sheiba Inu dog meme now has a market cap of $71 Billion. [not a bad valuation for a joke, but also foolish and frightening] It was up another 25-30% today at different points.

        More than just a Woof, Woof! It is a “Bow wow wow yippi yo yippy yay” (as Snoop Dog famously rapped).

          May 04, 2021 04:27 PM

          As a funny anecdotal story, I just heard from an old friend, that has never shown even the remotest interest in investing the last few decades. He contacted me because he remembered me mentioning my passion for investing and swing trading.

          > Question #1 he had for me: Have you heard of GameStop?

          I told him yes and laughed, and said it was quite a phenomenon. He didn’t laugh, and said what do you mean “was?” He said it still has so much further to run, and it was going to $1000+. I asked him if he was serious?

          > Question #2 that he had for me: Was I familiar with Reddit and Wallstreet bets?

          I answered “Of course. You’d have to be living in a cave not have heard of there epic squeezing of the shorts back in February in GameStop, AMC, Blackberry, Bed Bath & Beyond, and more recently Microvision.”

          – I forgot he was a hippy and did actually live in a cave, in a tent, in an abandoned house, and in his truck for short periods…

          > Question #3 for me from him. “Do I invest in the hot meme stonks?”

          I laughed at “Stonks” as it always cracks me up. Just like when the Reddit/Wall Street Bets guys call themselves “Apes.” “Apes together – Strong!”

          > Question #4 for me from him: “Have you heard of Dogecoin? What do you think of it.”

          Again, I laughed, because it was a joke coin, that was left for dead until Elon Musk started tweeting about it again. Even in the crypto world it was the butt of many jokes, until Elon started tweeting he was “The Dogefather.”

          He told me it was for sure going to $1. I asked how he could know that? He said, “That’s easy, I’ve been following thousands of people on Reddit providing me all the DD (due diligence) I could ever need and more.” I tried to explain the madness of crowds, herd mentality, and how what goes up parabolically, often crashes back down just as much. He told me to buy some last night, and I humored him that I’d consider it.

          Today he texted me asking if I got into Dogecoin, and I replied no. He was so disappointed and reminded me it was up 25-30% earlier today, that it will be going to $1, and that he is going to make a killing off it.

          I looked at many of my stocks in the red today, and realized after all these years of learning as much as I can about economics, investing, and spending huge amounts of time on managing risks when trading, that a friend with no experience, no background in investing, and following meme stonks on Reddit crushed the returns I made today. Pretty discouraging.

          > Question #5 for me from him: “Do you think the market is going to crash soon?”

          He went on to tell me that there were issues in bonds, that naked shorting was going to collapse the system, and that central bankers have lost control. I let him know that we agree there, but nobody knows the timing, but that there were 2 inverse ETFs I was in currently to short the Nasdaq and Russell 2000. He liked that idea and thought you could only short with options, which he was also doing.

          I asked him, how did you go from knowing nothing about investing to shorting the markets using options. He said “I struggled when I tried using Fidelity, but switched to using Robinhood and it makes it really easy”.

          For me, this was a “shoeshine guy” or “uber driver” moment of where we are in these markets.

            May 04, 2021 04:29 PM

            there = their

            hippy = hippie

      May 04, 2021 04:03 PM

      Did anyone else pick up some UEX today? 25% down day at one point. Did a day trade and am holding on to some, was definitely over valued for a few days.

        May 04, 2021 04:14 PM

        Good eye Dan, and good to see you are still in the land of the living and posting again.

        I hadn’t seen that fishing line sell-off in UEX but nice job catching that one. I was tied up much of the day, but noticed all of my Uranium stocks like Energy Fuels, Ur-Energy, NexGen, UEC, Azarga Uranium, Denison, Standard Uranium were down about 3%-6% on the day. It is likely the Rick Rule contrarian indicator since he just announced last week he was going to go out and start buying the U stocks more aggressively. Lol!

          May 04, 2021 04:17 PM

          That seems like an excessive selldown in UEX though, but seems to stem from the scuttlebutt that Denison has outbid them for acquiring JCU Exploration. I’d think that would be relief for UEX holders that they are not going to dilute or pony up those funds any more, but technically they get leapfrogged in the bid by DNN.

          Here was the most recent news from UEX on the bid for JCU Exploration.


          on 22 Apr 2021:

          UEX to Acquire 100% ownership of JCU (Canada) Exploration Company, Limited

            May 04, 2021 04:19 PM

            Then here was the news this morning from Denison with a superior offer:


            on 4 May 2021:

            (DNN) (DML) Denison Delivers Offer to Acquire 100% Ownership of JCU (Canada) Exploration Company, Limited


            May 04, 2021 04:22 PM

            It would actually be opportune if the Uranium stocks would pull back by about 20-30% further, as they were way too high and overbought to be adding to, and since trimming my portfolio back in Jan and March, I’ve not really added to much of anything, except to Standard Uranium as an earlier stage explorer. I’m also considering taking a punt on Baseload Energy, since I like the geological model behind their Athabasca 2.0 concept.

            With most of the companies though, if there was a nice liquidation selling period, then I’d add more to my position sizing in all companies.

            May 05, 2021 05:53 AM

            Meanwhile uranium royalty has done a bought deal at slight discount so it will probably pullback as well

            May 05, 2021 05:52 AM

            I own both DML and UEX, I have a finger on the sell button though…

    May 04, 2021 04:27 PM

    Risky Business: “Never in My 25 Years on Wall Street Have I Seen This,” Says Expert

    Stansberry Research – May 4, 2021

    “The Federal Reserve is blind to the runaway inflation, a risk I have not seen in my 25-year career,” says Frank Curzio, host of the popular podcast Wall Street Unplugged. Urging investors to protect themselves, he explains that now is the time to hedge— not go 100% all in. “Earning estimates are through the roof; inflation is here and the Fed doesn’t see it… they are pouring gasoline over the fire,” he tells Daniela Cambone.

      May 04, 2021 04:39 PM

      With regards to inflation, GDP, wages, and the situation we find ourselves in today, this recent article has some real eye-popping charts and tables in it for consideration.

      WTF Happened In 1971?

      River Financial

    May 04, 2021 04:36 PM

    (AR) (ARNGF) Argonaut Gold beats on revenue

    May 04, 2021 By: Jignesh Mehta, SA News Editor

    Argonaut Gold (OTCPK:ARNGF): Q1 GAAP EPS of $0.09.
    Revenue of $105.3M (+58.1% Y/Y) beats by $1.3M.

    May 04, 2021 04:54 PM

    one thing is for sure judging by all the posts and pundit comments, something is going to happen, particularly with gold. It’s been happening since last august

    May 05, 2021 05:58 AM

    I totally missed the boat on new found gold as I kept waiting for a nice pullback that never happened to get in…….hearing there’s another play involving same group
    New Found Gold (US: NFGFF), founded by Collin Kettell and led and advised by the likes of Craig Roberts, Paul Matysek and Bassam Moubarak, precisely the same individuals, who are now just beginning to execute a very similar strategy in Nevada with their newly-formed company, Nevada King (US: VKMTF & TSX-V: NKG)!

    Anyone know anything about this play other than the obvious new found connection

      May 05, 2021 05:01 AM

      Yep, heard of it, and it those same guys from Palisades, so I’m sure it will be well promoted and marketed, just like New Found Gold has been.

    May 05, 2021 05:09 AM

    SOLD entire position -Preset at the open NFGFF @8.15, BIGLY!

    May 05, 2021 05:05 AM

    Traunching back into NFGFF- 20% off the high -$6.52.

    May 05, 2021 05:06 AM

    Next NFGFF TRAUNCHES : $6.22, 5.93, 5.65