Hey traders, Lance Ippolito here! Welcome to our Weekly Rundown, where we’ll share some of our top trading ideas — and our biggest winners!
The Markets Have Had Enough of China’s Regulations
For the past month or so, it’s felt like we’ve seen nonstop news about regulation on Chinese stocks, and the bad headlines just keep coming…
In July, Beijing pulled rideshare company DiDi Global Inc. (NYSE: DIDI) from app stores over alleged cybersecurity concerns.
And I’ll admit, I love short-term trading... and I was able to make a good chunk of change off of DiDi. But that doesn’t mean we should keep buying dips, especially as more regulations come in.
And at the tail end of August, another round of regulations came down... this time for online video gaming.
These new restrictions limit kids under the age of 18 to just three hours a week of play time.
Access to their games will require name verification and the time is cut into one-hour chunks on Friday, Saturday and Sunday…
And I thought my parents were strict!
But as weird as it seems, the markets don’t seem worried…
Stay Away From US-Listed Chinese ADR Stocks
At first, it looked like the markets would shrug off the restrictions as Tencent Holdings Ltd. (OTCMkts: TCEHY), the world’s largest video game vendor, gapped up for two days straight after the news!
But it peaked after that move and has been trending down the past couple of days. And I know there’s a ton of you degenerates out there who want to buy the dips in these ADR stocks.
Trust me, I get it.
Big names like Tencent, Alibaba Group Holdings Ltd. (NYSE: BABA) and Baidu Inc. (Nasdaq: BIDU) are tempting to buy when you see them dip like they have…
But it’s just not worth it.
Because the Chinese government isn’t afraid to pull any punches when it comes to regulating its companies, and any one of them could be next. So why bother?
Especially when there’s at least 3,000 other stocks you can trade. Be smart about it, stay away from China or Beijing might just take your toys away.
Turning Pennies Into Millions
Every investor’s dream is to buy into that one company that turns them into a millionaire…
And although it’s not an easy thing to do, there are a ton of examples of it.
Everyone’s heard of Paypal and how investors who got in at its IPO price made 100% returns… but the early stage investors? They clocked returns of 11,700%!
And Pinterest — one of the hottest social media companies in the world — gave everyday investors a nice 287% gain if they bought and held from the IPO. But prior to its offering, shares of Pinterest could be bought for a penny a share!
Those investors walked away with a 736,500% return.
Kicking things off we have SelectQuote Inc. (NYSE: SLQT) and another in the age-old story of knee-jerk market overcorrections. The company reported earnings back on Aug. 25, and while it posted solid numbers, fell short of expectations. SLQT then made things worse with soft guidance for the rest of the year.
The next day, the stock was tagged by two analyst downgrades and a massive wave of panic selling, with shares dropping 44% overnight! Ouch. But the c-suite didn’t blink for a second. Starting on Aug. 30, the stock saw massive insider buys from the COO, CFO, President, CEO and a few board members, too.
All told, company leadership opened their checkbooks for $6 million worth of shares on the open market — that’s a HUGE buy-the-dip opportunity to me when you see insider buying like that!
Once the buyers started rolling in, this was a perfect opportunity for my 3D Profit Surge Alerts strategy, and I alerted members to jump the action on Aug 31. From there, the back-office-buying momentum has nearly filled the post-earnings gap, with shares climbing 37.5% in the past two weeks, leading 3D members to a substantial win in both stock and options plays!
+76.4% on the SLQT Jan. 21, 2022 $10 CALL.
Entered on Aug. 31 at $1.70 a contract.
Exited on Sept. 3 at $3.00 a contract.
On Aug. 26, my Blitz Tracker spotted heavy call buying in biotech firm Altimmune Inc. (Nasdaq: ALT). More than 31,000 contracts traded hands between September- and October-dated options that day — more than six times its normal volume!
The firm saw promising results from Phase 1 trials of its latest fatty liver disease treatment, and it’s set to begin Phase 2 trials in the first quarter of 2022. Then on Sept. 7, the company announced it will present at this year’s Wainwright Global Investment Conference. Shares popped around 5.5% following the announcement, and Blockbuster Breakout Calendar members walked away with a nice 72% win in less than two weeks!
+72.73% on the ALT Oct.15 $16 CALL.
Entered on Aug. 26 at $2.20 a contract.
Exited on Sept. 9 at $3.80 a contract.
And we’ll cap off the week with my fastest gain courtesy of our Daily Profits Challenge LIVE War Room! Monday through Thursday each week, you’ll find me at the conn, helping members navigate options order flow in the prime of the day. And when trade volumes pick up, you can see explosive results in less time than it takes to make a pot of coffee!
That’s exactly what happened on Thursday with tech titan Cisco Systems Inc. (Nasdaq: CSCO). The stock gapped down 1.4% in after-hours trading on the heels of a downgrade from analysts at Morgan Stanley. Things weren’t looking great for the networking firm in the opening hour… But that’s when the bulls started to pounce — just as the War Room went live at 10:30 a.m.!
By 10:35 a.m., we were in the Sept. 17 expiration $58.50 call at $0.59... 20 minutes later, options prices were surging along with shares, so we took profits on the first leg at $0.88 — just shy of a 50% gain! And with the options now in the money, all it took was a $0.12 move and another 20 minutes to hit my next price target — BANG!
All told, Daily Profits Challenge traders walked away with a nice 69% gain in 45 minutes. Markets move quickly, so there’s no better tool to get up-to-the-second information than trading with me... LIVE!
+49.15% and 69.49% on two legs of the CSCO Sept. 17 $58.50 CALL.
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 WealthPressare saying:
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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