Dow futures stocks test record highs during vaccine launches and hopes for stimulus. Congress is reportedly approaching a $ 900 billion aid package that could receive checks of between $ 600 and $ 700 by the end of the year.
On the latest episode of Mad Money, Jim Cramer said that this fair or unfair is a great time for the stock market. While the doubters may think the rally is a fake, Cramer said there is a lot to do to get into 2021.
Katherine Ross and Cramer from TheStreet talk about United Airlines’ contact tracking program, buying more Bitcoin and the complaint filed against Robinhood.
Stock United Airlines: buy or sell?
On Wednesday, United Airlines (UAL) – Request report said it will work with the Centers for Disease Control and Prevention (CDC) to collect customer contact information for all international and domestic flights.
Shares of United Airlines, JetBlue Airways and Spirit Airlines exploded on Wednesday after JP Morgan analyst Jamie Baker doubled all three airlines to underweight overweight.
Baker attributed the move to the stock’s high valuations after their recent run-up. That rise has “significantly diminished the implied potential upside” for the companies next year, as they have already exceeded its year-end targets for 2021, Baker wrote in a report quoted by The Fly.
Cramer said airlines have been forward on all things masks and contact tracing, but he doesn’t think it matters.
“The bottom line is, plain and simple, the vaccine,” he said. Cramer added that more than 300 million Americans should be vaccinated by the end of February.
Buy more Bitcoin
Bitcoin continued to skyrocket to new records, breaking the $ 20,000 barrier for the first time on Wednesday as investors and speculators jumped on board.
Some like to be a part of the fun, and some are afraid of missing out on all the benefits their neighbors are boasting about. Masters of hype are now asking for a prize of $ 30,000. Bitcoin recently traded at $ 20,755, up 6.9%, and is up 77% in the past three months.
Cramer is looking for more Bitcoin and said he tries to buy bitcoin every month.
“Bitcoin is not going to be the currency of the empire, but it is an additional diversification, just like gold,” he said.
Should Robinhood protect its users?
Massachusetts securities regulators are reported to be filing a complaint Wednesday against the trading platform operated by Robinhood Financial LLC, for allegedly aggressive marketing to inexperienced investors and failure to implement controls to protect them.
The Massachusetts Securities Division’s enforcement agency charged Robinhood with failing to protect its clients and their assets in violation of state laws and regulations, according to The Wall Street Journal, citing a latest draft of an administrative complaint.
Cramer said he did not like the term ‘gamification’ of stocks used in the complaint because he thinks stocks are a form of investing ‘but some are gamblers and gambling needs discipline’.
“They shouldn’t have used this term gamification as if those people were children, because it’s people with money who did their research,” he added.
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