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WEEKLY RUNDOWN Hey traders, Lance Ippolito here! Welcome to our Weekly Rundown, where we'll share some of our top trading ideas — and our biggest winners — from the New Money Crew!
I don't know how many of you are into video gaming, but I've been dying to get my hands on a PlayStation 5. Demand for Sony's latest and greatest console is through the roof, and that's driving up demand for semiconductors — and semiconductor stocks.
So there's a ton of demand but Sony can't ship these new consoles all over like they normally do because there's a major shortage in semiconductor chips.
So all the kids… and grown men like me… are hoping we can find a new PS5. But we can't. They're simply not available. When a new batch is announced through online retailers, they're snapped up in seconds.
People are hawking them on eBay for double the money! And that's because Sony simply can't find enough semiconductors to make their consoles.
So it sucks! BUT...
Semiconductor stocks… names like Nvidia Corp. (Nasdaq: NVDA)... Advanced Micro Devices Inc. (Nasdaq: AMD)... Western Digital Corp. (Nasdaq: WDC)... Applied Materials Inc. (Nasdaq: AMAT)... Lam Research Corp. (Nasdaq: LRCX)... have room to run.
Sure, they took a hit this week. But what stocks didn't? Before that, they were soaring!
Ultimately, they don't care what the stock market is doing and are catching massive upside. And remember, some of these names, like Nvidia, have exposure to not only gaming and esports — which is the future — but also cryptocurrencies like Bitcoin.
But the big story is that Sony, the largest video game-maker in the world, can't find chips to make consoles that are in super high demand. And what I'm hearing is there's no end in sight. These semiconductor stocks are cyclical… they come and go. But right now, they'll continue to move up indefinitely until supply catches up with demand.
And here's another freebie… if you want more exposure to the gaming sector, check out this industry giant that was once the gold standard in gaming: Nintendo 8 ADR (OTCMKTS: NTDOY).
I'm hearing that Super Mario World at Universal Studios Japan is insane. And they might just be opening one here in the states...
Now, on to some...
BIG Wins!
While it was certainly a choppy week of trading with some major selling pressure, we had a few more big winners from our Weekly Blitz Alerts service. All three were in option positions in Mattel Inc. (Nasdaq: MAT), Sabre Corp. (Nasdaq: SABR) and good ole General Motors Co. (NYSE: GM).
We saw multiple sweeps of MAT calls coming in hot, generally in groups of 300 to 500 — and a big bunch of 6,000 and then 7,000 — contracts as Mattel rallied off market lows. Traders paid $0.85 to $1 a contract. My thinking was Mattel could run higher with a breakout over $19.42 a share, its 52-week high. Mattel actually ran higher than its 52-week top, and we cashed out half our contracts with the rest riding on.
- +50% on the first half of MAT contracts (April 16 $20 CALL).
- Entered on Feb. 17 at $0.90 a contract.
- Exited first half of contracts on Feb. 24 at $1.35 a contract.
The next play was on SABR, a travel tech company — travel names have been hot! The stock got an upgrade the morning we bought in, so we went with a smaller position since it was post-upgrade, but it paid off well.
We sold the first half of these contracts literally one hour after buying thanks to a nice mention of SABR on CNBC's "Halftime Report." Then we took full profits on the final contracts with travel names rallying in a weak market!
- +50% on the second half of SABR (March 19 $14 CALL).
- Entered on Feb. 19 at $1.20 a contract.
- Exited on Feb. 22 at $1.80 a contract.
Finally, we saw 195,000 weekly calls on GM go out with the stock trading at $50.60, and contracts selling between $1.55 to $1.65 as stocks again bounced from morning lows.
As I noted in my Weekly Blitz Alerts Daily Market Color for you members (where you can get a ton of trade ideas to make your own plays), the $TRIN index came down off 1.8, which means oversold. It runs inverse to the S&P 500, so a bounce in value names like GM could see a big upside — nailed it for a 59% gain!
- +59.38% on GM (Feb. 26 $49.50 CALL).
- Entered on Feb. 23 at $1.60 a contract.
- Exited on Feb. 24 at $2.55 a contract.
My Weekly Blitz Alerts are issued based on institutional order flow in the options market tracking and trading the largest, single-stock options orders throughout the day. In addition to trade alerts, I also offer up daily market commentary that you can use to come up with your own ideas based on order flow coming into my scanner.
If you have a big score you'd like to share with your fellow New Money Crew readers, email us your screenshots of the trade and/or any details you want to share at wptestimonial@gmail.com, and we'll celebrate them here!
These Small Stocks Look Ready To Explode
A former hedge fund manager turned "people's trader" recently clocked out of a 53% ROI trade in under 24 hours…
But now he's hunting a much bigger game.
We're not talking about 100% or even 1,000% returns… but the chance to grab gains like 3,833% on some of the world's smallest stocks.
This is like buying a future Fortune 500 company while it's still trading at a small-cap price. In other words, few investors ever get an opportunity like this.
But you're about to get yours.
Find Out How!
CCIV Tanks and PLTR Reeks of Crooked Insider Trading
Did you notice some of the "surprising" premarket activity Tuesday morning with companies that have made a lot of headlines this year? Two popular stocks just tanked and traders who invested in them are feeling some pain.
Churchill Capital, the first stock, announced its long-rumored deal with Lucid Motors. Big, big news, right?
Wrong. Word of the deal actually sent shares plummeting as much as 40% overnight.
As I mentioned in my previous video, Churchill Capital Corp. IV (NYSE: CCIV) is a special purpose acquisition company (SPAC) founded by former Citigroup executive Michael Klein. Rumors of a merger between Churchill Capital and Lucid Motors — an electric vehicle-maker — have pushed CCIV's stock up more than 470% since January.
And now there's more news out about Lucid Motors confirming its move to go public. They plan on closing the $24 billion merger some time in the second quarter of this year.
However, on Tuesday we saw the stock down more than 30%, tumbling to less than $31 a share after closing Monday's session at $57.37. The stock closed at $35.31 on Tuesday and was sitting sub-$30 Friday morning.
That's a significant difference from how the stock was performing since January, when rumors of the SPAC deal first started making its way down Wall Street.
So now you have all the early investors panic selling CCIV, either because their early enthusiasm is lost, terms of the SPAC deal are lackluster... or it's a major case of "buy the rumor, sell the news" — with novice traders buying.
As for the second stock losing value in 2021, this one has a massive case of crooked insider trading that you don't want to be a part of...
Palantir Technologies Inc. (NYSE: PLTR).
All it takes is a look on any social media app to figure out why: Everyone's talking about how they're going long on PLTR because the company is going to change the world.
But have you noticed the insider action going on? It's insane.
All of the insiders are selling their positions to… you the retail trader left holding the bag.
We even saw Goldman Sachs upgrade the stock last week to try and get shares to go higher so the insiders can sell at higher prices. And of course everyone wants to buy the dip...
If you don't think Wall Street's full of crooks, conmen and manipulators, let this be your wake-up call.
Signing Off
If you're looking for more compelling trade ideas and stock market musings to read and help you prepare for what lies ahead, here's what other experts at WealthPress are saying:
Lance Ippolito
New Money Crew
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Disclaimer & Disclosures: The information in this email is intended for informational purposes only and does not guarantee specific results as there is a high degree of risk involved with trading. Also, our traders are real traders and may have financial interests in the companies discussed. Please see our Terms and Conditions for more information.
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