We’ve made it to the end of the first week in 2022… So it’s time to talk markets and reveal this week’s New Money Crew Weekend Watchlist!
The markets continue to be choppy, and while the VIX fear index may not be moving much, individual stocks are.
But despite sneaky volatility, it’s been a fantastic week of profits across the New Money Crew strategies, and a great way to start 2022!
So let’s recap the market action by breaking down some of our top gains…
And get ready to roll that momentum into next week with the three names burning up the tape on the New Money Crew Weekend Watchlist for Jan. 7…
New Money Crew Strategies Start 2022 Off Strong
We started the week scoring our second hat trick in a row for our Wiretap Alerts strategy, including a 68% gain on Cameco Corp. (NYSE: CCJ). I love energy right now as value and quality names have solid momentum to start the year.
The minutes from December’s Federal Open Market Committee meeting were released on Wednesday, and suggestions that the Federal Reserve could trim its balance sheet sooner than expected sparked a nasty sell-off.
The indexes took a hit — especially the tech-heavy Nasdaq — but the value names and so-called “boring” stocks like Ford Motor Co. (NYSE: F) and General Motors Co. (NYSE: GM) held up against the selling pressure.
The rotation out of growth and into quality paid also off for our 3D Profit Surge Alerts strategy, driving away with a 87.5% win on the April $21 strike calls — earning trade of the week honors!
And while Ford walks away with the top prize, I can’t go without giving a shout to one of the fastest wins we’ve seen with Robinhood Markets Inc. (Nasdaq: HOOD). This is one of the worst charts on the markets right now. I mean, just look for yourself…
So when I saw 5,000 contracts of Jan. 14 $15.50 strike calls hit the Blitz Tracker on this piggy — after hitting 52-week lows — I suspected something had to be up.
As tech was getting hammered, I ended up selling for nice gains of 20% and 33% in less than two hours, only to see the options catch a mention on cable news and run up another 15%. Now I’m not saying this was a pump, but it’s funny how things work out sometimes…
New Money Crew Weekend Watchlist for January 7
First up in the New Money Crew Weekend Watchlist, we have our good friend DraftKings Inc. (Nasdaq: DKING). You know it, I know it…
Full disclosure: I have a structured note on the company and it was a pig stock in the back half of 2022. It is ending the week on a strong note — up about $2 off the lows — and is seeing some call buying for next week.
Coming in nexts Microsoft Corp. (Nasdaq: MSFT). Bill Gates’ baby is coming off of its worst week since the start of the pandemic, closing lower in six straight sessions. It’s just over 10% off record highs and there’s been bullish support at these levels — the stock retraced its last two drops in November and December.
Finally, we have American Eagle Outfitters Inc. (NYSE: AEO). The stock had a nice run during the Santa Claus rally, but sold off sharply to end the year. The company’s Aerie brand segment has been a strong performer in recent quarters, and a case can be made that the stock is undervalued at its current level. We’re also seeing buyers come in for some bottom-fishing, burning up the tape in the Jan. 14 expiration options.
That’s it for this week. I hope to see everyone in the trade room Monday!
Don’t forget you can follow me @LanceIppolito on Twitter, Instagram and our YouTube channel for more trading insights and tips. And as always, you can find me right here talking stocks and options trading — and printing money — on WealthPress.com!
P.S. I don’t want to scare anyone, but traders who don’t have a financial plan of action for 2022 might be in some hot water…
Luckily, WealthPress Senior Strategist Roger Scott is sharing his “Turning Point 2022” presentation, where he gave away three huge predictions and his favorite play for the new year!
The timing of this is absolutely crucial because the new year has already started…
And with world health getting more complex, it should come as no surprise that we might be in for another bumpy year ahead…
