Insiders Keep Dumping the World’s Biggest Company VIEW IN BROWSER By Michael Salvatore, Editor, TradeSmith Daily In This Digest: - Lithium producers are bucking wider downtrend in stocks
- These metals are a must-have in your portfolio
- Why Rick Rule is the top expert to guide you
- Why late-year seasonality says we shouldn’t count out stocks
- Insiders keep dumping the world’s biggest company
- How the Swan brothers are playing Nvidia’s earnings report in Earnings Season Pass
There’s always a bull market somewhere… It may be the market cliché to end all market clichés. But it’s only a cliché because it’s true. And it’s certainly true now. The S&P 500’s marked a four-day losing streak yesterday, now down 3.2% this month. Obviously, it’s still a bull market. The S&P 500 is down just 4% from its all-time high set on Oct. 29 – far from the 20% drop that traditionally defines a bear. (Our own Long-Term Health Indicator is more conservative, with the S&P entering our risk-off Red Zone on an 11% drawdown.) Regardless, there are stronger pockets to trade out there. Yesterday we covered the relative strength in utilities stocks. The sector is also down since the start of the month, but by just 1%. And we can do even better than that. Certain sectors are working very well right now. And our job at TradeSmith is to keep these sectors on your radar by using our world-class analytics. Take lithium, for example… As judged by the GlobalX Lithium & Battery Tech ETF (LIT), it’s up 36% since September, while the S&P 500 has traded flat. That’s the “bull market somewhere” we should focus on. 
Lithium is an essential component of today’s most widely used rechargeable batteries. These go into everything from smartphones, laptops, and other consumer gadgets… to electric vehicles and robots… to the massive energy-storage solutions needed for AI datacenters. And that’s a big reason why the White House bought up shares of domestic lithium producer Lithium Americas (LAC) earlier this year. Its core project is the Thacker Pass mine in Nevada – one of the largest known lithium deposits in North America. It’s part of a broader push to shore up America’s access to the materials that power everything from EVs to AI. Since the announcement in late September, the stock is up more than 60% – and that’s after giving back half of its peak gains. | Recommended Link | | | | TradeSmith has unleashed a mathematical monster that should terrify hedge fund managers. This Baltimore-based team’s breakthrough technology reveals each stock’s unique “volatility fingerprint,” helping regular people decide when to buy and sell. Click here to see how. |  | | The lithium story is just one piece of a much bigger trend… The White House’s other notable buy was in preferred stock of MP Materials (MP), one of the only domestic producers of rare-earth metals. This group of more than a dozen elements is used to make the high-strength magnets needed to make robots move through the world. They also show up in military tech – everything from drones to jet-fighter guidance systems to night-vision gear to precision-guided weapons. And the stock is up 95% since the Trump administration bought in. Rare earths and lithium are just the beginning. More recently, the feds bought a stake in copper and zinc miner Trilogy Metals (TMQ). Copper is used in the wiring that carries power through datacenter networks, just like it connects your microwave to a nearby power outlet. And zinc is used to galvanize steel. This stops it from corroding, making zinc an important part of building civilian infrastructure like bridges, highways, and buildings. That stock, too, has shot up 90% since the White House bought in… and was up as much as 400% in just eight days. As we’ve been showing you this week, resources are a key component of the AI megatrend. And with the White House gobbling up equity stakes, investing in the right stocks can print fast, outsized returns. But how do you invest in resources like a pro? It’s not easy. Resource mining and production is a notoriously difficult business, with high costs and even higher risks. Mines collapse. Discoveries disappoint. And political and environmental groups can suddenly halt projects. That’s not to mention corrupt government regimes in the far-flung countries many of these critical elements are mined in. Most lithium and rare earths come from places like China, the Democratic Republic of the Congo, and parts of South America. All of this can lead to increased borrowing, which can burden the companies with debt and make them vulnerable to financial shocks, like rising interest rates. You don’t want to get involved in this sector without a seasoned pro to guide you. And there are few people alive today with more experience in the natural resource investing game than Rick Rule. Rick has worked in the securities business since 1974. He founded the company that became Sprott US Holdings in 1990. And he later merged it into Sprott Inc. – a leading global manager of precious metals and resource investments – where he remained until 2021. And he’s led or participated in hundreds of private placement deals across the resource sector – financing everything from junior gold and copper explorers to oil and gas developers and renewable-energy projects. Last night, Rick revealed his findings about the Trump administration’s “Buy List” for key metals and resource stocks. He showed how Washington has quietly become the biggest player in the market – and why it’s triggering a once-in-a-generation boom across critical minerals powering AI, defense, and energy. Most important, he revealed which companies may be next on the administration’s buy list… and shared a free stock recommendation to get ahead of the government’s next major move. 8,638 people attended Rick’s presentation last night and received this critical info. And while the replay won’t be up forever, there’s still time to see what went down. For the full details, go here now. Now, let’s check in on seasonality… One of TradeSmith’s most popular features is our Seasonality tool. Seasonality is the study of when various assets move throughout the year. As just one example, the S&P 500 has historically seen great returns in the fourth quarter, with a big chunk of those returns typically coming in late November. Our software helps you visualize these patterns going back for as long as we have data. We find it especially helpful to look at the past 15 years, as that’s the most relevant slice of market data. Here’s the Seasonality chart for the S&P 500: 
As you can see, the S&P 500 has had a perfect track record of rising from Oct. 23 to Dec. 2 over the last 15 years, for an average return of 3.5%. But it’s important to remember that seasonality is just one piece of the market puzzle. Stocks may have had a perfect track record in this window. But that doesn’t guarantee they’ll rally again this year. For the bullish pattern to repeat this year, the S&P 500 would need to climb by about 5% between now and Dec. 2. The seasonal trend is bullish, but there’s plenty that could trip up the market along the way. Especially when the world’s biggest company is set to report earnings today… King of the chipmakers Nvidia (NVDA) is set to report earnings after today’s market close. And like recent NVDA earnings reports, it’s sucking all the air out of the room. With NVDA making up a record 7.4% of the S&P 500, it has the potential to dramatically move the market based on how the numbers come out. The lead-up to this report has been especially intense. Japanese investing firm SoftBank made headlines last week for unloading its entire $5.8 billion stake in the chipmaker. The stated reason was to free up funds that could be better put to work in seminal AI player OpenAI. But nobody knows the real reason for the pullout. And it’s planted a seed of doubt in investors’ minds. Before that, Nvidia was the target of a bearish bet by Michael Burry. He’s the reclusive investor famed for his “Big Short” bet on the housing market in 2008… and more recently shut down his hedge fund after the media blitz surrounding his recent trades. And just yesterday, news came out that Silicon Valley kingmaker Peter Thiel unloaded his hedge fund’s $100 million stake in NVDA as well. Safe to say, pressure is building on NVDA to perform this afternoon. The stock is more than 12% off its all-time high from Oct. 29 – a big part of why the broader market has suffered these past couple weeks. No matter what happens after the report, it’s sure to be big. Options markets were pricing in a move of close to 8%, up or down, earlier this week. A big move like this is always a tantalizing trading opportunity. And whenever I want an edge on an earnings report, I turn to Andy and Landon Swan’s Earnings Season Pass. Andy and Landon use a combination of fundamental business stats, technical price momentum, and a unique layer of social sentiment to give their subscribers an edge every earnings season. They’re bullish heading into NVDA’s earnings this week, recommending Earnings Season Pass subscribers lean the same way. Here’s what they had to say about the stock, using insights from their unique Data Engine: Over the last quarter, Nvidia has expanded its defensive moat against the competition. Digital demand easily bests peers such as Advanced Micro Devices (AMD) and Intel (INTC), with NVDA web visits soaring +19% year over year on a 30-day moving average: 
NVDA shares dropped on a double earnings beat last quarter, proving just how high the bar is for this company. But with the stock down ~8% since the end of October, that recent pullback could help temper any outsized sell-off this week. The Swan brothers smartly recognize the almost binary nature of earnings reports. For any company, an earnings beat and raise doesn’t necessarily mean the stock will rise. A piece of sour news about a leadership departure, an unexpected expense, or any number of possibilities can sink the stock in the short term, anyway. That’s why every trade they recommend gives their subscribers the chance to earn more if they win than they’d lose if the trade goes against them. And it’s why the Earnings Season Pass track record held a 51.7% win rate in 2024 with an average gain of 16.9%. Many subscribers enjoy even more gains, as Sebastian S. shared with the brothers back in August: “…as I recently upgraded to TradeSmith Platinum, I also got access to Earnings Pass, and I certainly don’t regret my decision since I’ve probably made some of the largest short term trade wins in just a few days every time… ONON —> 76.8% in one day! CELH —> 173% in one day!! PODD —> 146% in two days!! SHOP —> 325% in one day!!! ? Thanks again! Looking forward to the next update. Out of all the emails I’m getting from TradeSmith, yours certainly stand out.” – Sebastian S., Earnings Season Pass subscriber, Aug. 13, 2025 No matter how NVDA’s report lands, we’ll be sure to give you the full update in tomorrow’s Digest. So stay tuned. And if you’re interested in learning more about Earnings Season Pass, go here for all the details straight from Andy and Landon. To building wealth beyond measure, 
Michael Salvatore
Editor, TradeSmith Daily | 
0 Response to "Insiders Keep Dumping the World’s Biggest Company"
Post a Comment