If this situation wasn’t true, I wouldn’t believe it…

Here’s the story…

The reboot of HBO’s hit show Sex and the City debuted this past Thursday on HBO Max.

In the first episode, Sarah Jessica Parker’s character’s love interest (named Mr. Big) is killed off in a storyline that heavily involves his Peloton bike.

He took a ride on a Peloton bike… went to take a shower… dropped his phone… experienced chest pains… and then died.

And get this…

In response to this fictitious storyline, shares of Peloton (Nasdaq: PTON) fell 10%.

Does that make any logical sense to you? Of course not.

On the show, Mr. Big was often seen consuming cocktails, cigars and big steaks. In Season 6, he had a heart attack.

So it’s very irrational to give Peloton a 10% haircut in response to this storyline.

In fact, it reminds me of the blowback Peloton received from its holiday commercial last year.

And so here’s the opportunity…

At the start of this year, Peloton was a $170 stock.

Fast forward to today, and Peloton has dropped below $40.

After booming sales during the beginning of the pandemic, people have now slowly returned to normal life and Pelton’s sales have normalized.

Last month, stationary bike and treadmill sales fell 17%, which triggered a sell-off. But now that the stock has dropped another 10% due to an HBO episode, you have to wonder: Has the sell-off gone too far? Has all the bad news now been priced into the stock?

Action Plan: It could be bargain-basement time, so this is clearly a name worth watching. If Peloton announces a new product (such as a rowing machine, for example), shares could be a screaming buy. Join Trade of the Day Plus now before we make our official recommendation!

P.S. In a move of PR brilliance, Peloton released a parody commercial on Sunday that responds to the Sex and the City plot. In Peloton’s parody commercial, Jess King (who is the real-life Peloton instructor portrayed in the HBO show) sits down with Mr. Big (played by actor Chris Noth) after he gets up from a fall and asks him if he would like to take another class. A voiceover by actor Ryan Reynolds says, “And just like that, the world was reminded that regular cycling stimulates and improves your heart, lungs and circulation… Cycling strengthens your heart muscles, lowers resting pulse and reduces blood fat levels. He’s alive.”

Well played, Peloton. Well played.

Monday Market Minute:

• We’ve won on our Hertz 30-year warrants in Trade of the Day Plus. But now it could be time to buy the stock outright. Tracking.
• Monetary policy meetings kick off tomorrow. Expectations are that the Fed will stay hawkish and speed up the pace of tapering. This could trigger some market jitters – stay light and balanced.
• Stay-at-home plays and opening-up plays are getting hit. Tax-loss selling and lack of investor confidence are the only two constants today.