The bizarro Nasdaq market saga continues into another week…
The tech-heavy index made new highs once again with only one of the four FAANG stocks pulling its weight Monday — Meta Platforms Inc. (Nasdaq: FB).
Outside of Meta — which you may know as Facebook — it’s been semiconductors and Tesla Inc. (Nasdaq: TSLA) carrying all of the water.
Tesla is in the middle of a feedback loop as money rotates out of large-cap S&P 500 stocks and into smaller Russell 2000 companies… Namely the battery and energy EV pick-and-shovel play names as the sector gets ready to report earnings over the next two weeks.
These are stocks like FuelCell Energy (Nasdaq: FCEL), Plug Power Inc. (Nasdaq: PLUG) and Lithium Americas Corp. (NYSE: LAC).
If those names sound familiar to you, they should… Each of the the EV pick-and-shovel plays have been featured or recommended either here or in Blitz Daily in the past three months.
And if you took a trade on any of them, you’re making out like a bandit Monday!
3 EV Pick and Shovel Plays Riding on Tesla’s Run Higher
The first of our energy names riding high through energy earnings are FuelCell Energy and Plug Power. Both companies manufacture hydrogen fuel cells for EVs and all-around electric generation.
These two volatile stocks are favorite targets of big swinging options traders, and both have periods where they make frequent guest appearances on my Blitz Tracker. That’s how FCEL ended up in the Blitz Daily’s top flow back on Oct. 13.
Even if a trader had picked up shares of this EV pick-and-shovel play on the dead high of Oct. 14, they’d have had a chance to cash out Monday for a 26% gain in a little over two weeks.
That’s not bad, but it’s about to get a whole lot better… I mentioned Plug Power as a play on pick-and-shovel EV names on July 29 when it closed at $27.20 per share.
Monday saw shares jump above the $41 level, representing a potential 50% win in three months — and we’re still not done!
Bringing up the rear is Lithium Americas Corp. It might not surprise you to learn LAC is a lithium miner with operations in the U.S. and Argentina.
It’s even less surprising to find out that lithium is a huge player in the EV battery market — or that it’s going to take some time and investment to get enough of it to meet the demand for EV batteries.
What should surprise you is after featuring it on Aug. 14, LAC shares have gained a blistering 71% in less than three months — BANG!
Yes, I love to talk options trading and institutional buying… But it’s also possible to see fantastic returns in cheap stocks when they see sizable volume.
Check out the quick video where I break down these moves along with another stock I like in the long term that fits right in the mold of these three inexpensive EV pick and shovel plays.