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These 3 Stocks Are Complete Junk — But That Doesn’t Matter Right Now

by | Jun 24, 2022 | Watchlist

It might have been a short trading week, but I’m only sorry to see Friday show up because I don’t want it to end!

This has been some of the best trading I’ve seen in years! So before we dive into the latest New Money Crew Weekend Watchlist names, let’s take a lap…

For two weeks now I’ve done my best in every video, every Roundtable and every TV appearance to blow my bullhorn as I shout from the mountaintops about one thing — growth stocks. And I’m not talking about the big FAANG tech stocks — even if Wiretap Alerts and Weekly Trade Alliance both scored wins on Apple Inc. (Nasdaq: AAPL)… 

I’m talking about the highly shorted, high-beta, stuck-in-the-mud Cathie Wood Ark fund stocks — grade-A junk!   

If you saw Tuesday’s piece, then you already know Wiretap Alerts crushed the long holiday weekend trading Snap Inc. (NYSE: SNAP), Roku Inc. (Nasdaq: ROKU) and Roblox. We hooked the Ark names at the bottom and reeled in the second-best set of trades since our launch, going 3 for 3 plus one in a bonus trade!

And if you tuned into Wednesday’s WealthPress Live Roundtable, you heard me call out other growth stocks like Affirm, DraftKings Inc. (Nasdaq: DKNG) and Robinhood Markets Inc. (Nasdaq: HOOD), which have all seen stellar moves this week!

Speaking of Robinhood, Weekly Blitz Alerts saw big gains on the meme stonk-pusher along with beaten-down automaker General Motors Co. (NYSE: GM). Meanwhile, Ford Motor Co. (NYSE: F) scored a win for our Bang Trades strategy!

It’s been a great week with fantastic gains on some terrible companies… and the party isn’t over yet!

I have three more screaming-hot “junk” names for traders to keep a close eye on in the latest New Money Crew Weekend Watchlist!

New Money Crew Weekend Watchlist: June 24, 2022

After two of the worst weeks traders have seen since the beginning of the pandemic, the markets opened up in a big way these past four trading days.

And — like we talked about last week — as long as the Energy Select Sector SPDR Fund (NYSEArca: XLE) keeps trending lower, these junk names will have room to squeeze higher.

With that in mind, I have three new tickers for New Money Crew readers to throw on the Weekend Watchlist!

First up, New Money Crew sets its sights on Exelixis Inc. (Nasdaq: EXEL). Exelixis is a small genomic drug company focused on cancer treatments. This week, the company announced it’s starting phase 3 trials of its latest intestinal cancer treatment that’s helped it catch fire along with the rest of the biotech sector. 

Shares are up more than 25% since June 17, and we noted bullish buyers swept in to grab fistfuls of the August monthly call options in Wednesday’s Blitz Daily video!

Next up, New Money Crew is jumping right into the thick of it and adding Roblox Corp. (NYSE: RBLX) to our Weekend Watchlist. The firm makes platform that skyrocketed in popularity during the pandemic lockdowns. 

As far as the news goes, there isn’t much to like… The platform’s latest numbers show revenue for May fell around 10% year over year while daily active users declined over 20% in the same period. But that hasn’t kept this garbage stock from squeezing into the stratosphere!

While the $10 gain since June 16 barely makes a dent in the peak $80 loss shareholders have sustained so far in 2022… The institutional traders who scooped up the July 15 expiration, $22.50 strike calls got in just in time to enjoy a 40% explosion in the underlying stock — BANG! 

Moves like this are why we follow the flow — and why the bulls keep coming back for more of those sweet, sweet gains!

Closing out the Weekend Watchlist for New Money Crew is Affirm Holdings Inc. (Nasdaq: AFRM). Similar to Roblox, AFRM is another growth stock feeling the squeeze this week, up around 40% since June 16. And also like RBLX, the payments business doesn’t have much of anything in the way of good news. In fact, the buy now, pay later space is starting to get more crowded now that Apple has entered the fray.

Of course, the similarities don’t end there, either — my scanners have also spotted repeat bullish call buying in this options chain!

It’s important to keep in mind these aren’t companies we want to buy and hold — which is why I called them “junk”!

But for now, it doesn’t matter that their fundamentals are awful… And never mind that the charts on these stocks have been terrible leading up to these breakouts. What matters is they’re squeezing higher, and we want to sell the rips.

This is not a market and these are not stocks to fall in love with and hold on forever — like I mentioned in my latest appearance on Cheddar. This market isn’t going to give us a penny. So it’s up to traders to get in, take what we can, get out and never look back!

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WRITTEN BY<br>Lance Ippolito

Lance Ippolito

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