Markets are poised for another week of gains after a fantastic relief rally on the heels of better-than-expected inflation data.
The news helped the New Money Crew pull in gains left and right across our different strategies…
Because when I’m focused on a move and I see volume confirming a juicy trade, I’m like a dog with a bone…
I’m not letting go until I’ve gotten what I want, or there’s none of it left to chew!
We started off with the lucky No. 13 hat trick of winning trades for Wiretap Alerts, scoring a massive 62%* win on ChargePoint Holdings Inc. (NYSE: CHPT). That’s well above the 13.9% weighted average return including all winners and losers, pulling the strategy’s lifetime win rate above 68%!
Project X also scored a nice overnight win on Goodyear Tire & Rubber Co. (NYSE: GT), and I even called out some huge winners on Tesla Inc. (Nasdaq: TSLA), Marvell Technologies Inc. (Nasdaq: MRVL) and Apple Inc. (Nasdaq: AAPL) during my LIVE trading session with Master Indicator members!
And while our fantastic winning streak for Weekly Blitz Alerts finally came to an end late last week at the hands of our old friend Under Armour inc. (NYSE: UAA), we rebounded with a big overnight winner on Century Aluminum Co. (Nasdaq: CENX) calls!
But no matter which direction the market goes, our trader’s mindset is always focused on finding the top institutional order flow!
Filter Out the Noise With a Focused Trader’s Mindset
First and foremost, I’m a trader. And I’m here to take that trader’s mindset and focus on the biggest movers I can find, take profits and do it all over again.
One of the key steps toward that focused trader’s mindset means letting go of the idea that anything but price and volume matters.
Book values, P/E ratios, bullish charts, MACD, RSI, earnings results… Traders can throw all of the junk out of the window and keep it simple.
The only thing that matters is price. And what drives price? Volume.
When we see bullish institutional volume hit in a name that’s been beaten down and left for dead… that’s when I get excited.
And if those companies are highly shorted junk, that’s OK, too!
Our strategies have been reeling in returns on some of the biggest hunk-of-junk stocks traded on the major exchanges for weeks now.
Are these companies going to be around in five years? Who cares? We’re not looking to hold five days let alone five years!
CENX Earnings Short Squeeze
Just look at Century Aluminum. This is a high-flying company with a terrible chart. Its shares had been cut in half since the start of 2022, and it missed earnings estimates by more than 50% for the second quarter — there’s a reason more than 13% of its shares are being shorted.
But when I saw big institutional volume hit Tuesday morning on cheap, at-the-money calls, I was sure this puppy could squeeze!
In spite of all the bad news and terrible fundamentals, the stock went up 18.6%… not down. That’s all because the Nasdaq was ripping, and the company was heavily shorted.
And like I said in Wednesday’s Blitz Daily — when stocks like this one squeeze, they squeeze hard!
Check out the short clip from my Weekly Market Update, and let’s take a look at a couple of more examples while we talk about how to focus on that trader’s mindset…
P.S. We thought we’d seen just about everything inside financial markets…
But this is on a whole new level!
In the past few years, these tiny arrows have made some incredible calls in the stock market…
And now, they’re causing a BIG stir!
*Stated results are atypical for given period. Past performance is not indicative of any future results. Trade at your own risk.