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5 US stocks for Aussies to watch in October

Posted: 11 October 2019 6:51 pm
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These are the best performing and the most exciting US stocks to keep tab of if you're an Aussie investor.

Matt Leibowitz is the founder of share trading platform Stake and a guest contributor at Finder. The views and opinions expressed in this article (which may be subject to change without notice) are solely those of Matt's and do not necessarily reflect those of Finder and its employees.

Each month, I’ll be running through what’s hot on the Stake trading platform. It’s a quick snapshot of what US stocks our traders are jumping on board or selling out of. Either way, they’re playing the market and trying to make a buck.

I’ll also tell you what’s in our team’s watchlist. Remember, this is not advice. Do your own research, make your own decisions and take responsibility for your investing. That’s where the challenge and joy in being in the stock market comes from.

Before you read on and as a first-time introduction, it’s worth reading about what Stake does in this review. Back to it… this is what went down (and up) in September:

5 best performing US stocks in September

  1. Lexicon Pharma (LXRX) +128.1% for the month
  2. Just Energy Group (JE) +115.5%
  3. Alder BioPharma (ALDR) +110.7%
  4. China Online Education (COE) +87.2%
  5. Dova Pharma (DOVA) +86.5%

5 most traded US stocks for September

  1. Tesla (TSLA) +6.8%
  2. Apple (AAPL) +7.3%
  3. VelocityShares 3x Long Natural Gas (UGAZ) -8.5%%
  4. Atlassian (TEAM) -6.7%
  5. Microsoft (MSFT) +0.9%

What your generation is trading

  • 18-24 years: UGAZ (UGAZ)
  • 25-34 years: UGAZ (UGAZ)
  • 35-44 years: Tesla (TSLA)
  • 45-54 years: Micron Technologies (MU)
  • 55-64 years: Fastly (FSLY)
  • 65+ years: Alteryx (AYX)

For the pros

Our more experienced traders are looking for some exponential returns with leveraged ETFs. Leveraged ETFs give traders up to 3x exposure to the movements of an asset, both when the asset appreciates or depreciates. A big note before you read on… these are complex products and are not for beginners.

So popular are these securities that Stake users traded $UGAZ, $DGAZ, $DWT and $TVIX more than market giants like Microsoft (MSFT) and Berkshire Hathaway (BRK.B) in September. With some market movement still around in various sectors due to what's happening between China and the US, these instruments are worth keeping an eye on.

How do they work? The best way to explain is through an example.

$SPXU, is a 3x inversely leveraged S&P500 ETF – so every time the S&P500 falls 1%, $SPXU rises 3%. So for those thinking the overall US market is going to fall, this is a security that will make them money if they are right. Of course, the downside is 3x when the trade doesn’t work out, which is why they are not for novice investors.

Spin city… the most talked about IPO of September: Peloton

2019 has been a big year for IPOs; Uber (UBER), Lyft (LYFT) and now Peloton (PTON) have all gone public.

Home exercise bikes are no longer a place to hang your clothes. Courtesy of Peloton, a New York based exercise equipment and media company, its $2,200 stationary bike, which is paired with a US$39 content subscription, is a fixture in Manhattan lofts. If you ask the CEO though, Peloton is offering more than just a bike and videos: “Peloton sells happiness”.

A week after listing, Peloton has fallen 15% and settled at a market capitalisation of US$6 billion. Not bad for a bike company.

Recent 52-week highs

These are the stocks that have just hit 1-year highs. You’ll see why these are worth watching if you read a bit further.

  1. Dova Pharma (DOVA) +40.1% in the last week
  2. Stars Group (TSG) +34.6
  3. Global Medical REIT (GMRE) +2.1%
  4. Helen of Troy (HELE) +2.6%
  5. Universal Health Realty Income Trust (UHT) +1.3%

What I’m watching in October

With the market a bit shaky, I’m keeping a close eye on things with a smaller watchlist than normal. My overall strategy is not to buy low and sell high. It’s to buy high and sell higher (I’ll explain this more in another article).

In terms of the stocks worth watching closely, here they are:

  1. Frontline (FRO): I actually own this stock at the time of writing. It’s at new highs and I like new highs.
  2. Lululemon (LULU): continues to move up. As Newton said, “a body in motion will remain in motion unless it is acted upon by an external force.” Smart man Isaac Newton.
  3. Helen of Troy (HELE): making 3-year highs. With little overhead supply, this one is on my watchlist. One to watch and see if it continues to move on up.

Key disclaimers on this. These are stocks that may suit my strategy and not yours. I have a stop loss planned and ready before every trade. These stocks may go down, or up... or nowhere. Take responsibility for your investments – that's the real joy of being in the market. The money comes from hard work and discipline, not from stock tips.

The information contained in this article is not intended to be and does not constitute financial advice, investment advice, trading advice or any other advice or recommendation of any sort. Neither the author nor Finder have taken into account your personal circumstances. You should seek professional advice before making any further decisions based on this information. The views and opinions expressed in this article (which may be subject to change without notice) are solely those of Matt's and do not necessarily reflect those of Finder and its employees.

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