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1 Materials and 1 Energy Play for Tightening Wartime Markets

by | Mar 4, 2022 | Watchlist

We’ve hit the end of another whipsaw week where the big headlines moving the markets are still centered around the war in Ukraine…

There hasn’t been much to write home about outside of Wednesday’s rally when it looked like tensions might ease, but Thursday saw more selling and stocks opened lower before selling off Friday.

Our New Money Crew strategies were able to front load some wins, with Weekend Watchlist members D.R. Horton Inc. (NYSE: DHI) and Nvidia Corp. (Nasdaq: NVDA) seeing peak gains around 4.5% and 3%, respectively

Our Wiretap Alerts strategy continues racking up wins in 2022, scoring another hat trick by reeling in solid gains on PayPal Holdings, Inc. (Nasdaq: PYPL), Barrick Gold Corp. (NYSE: GOLD), and Uber Technologies Inc. (NYSE: UBER).

With what looks to be another volatile, headline-driven week ahead of us, let’s see what stocks are hitting the tape to put on our New Money Crew Weekend Watchlist…

New Money Crew Weekend Watchlist: March 4, 2022

For the first name on our new Weekend Watchlist, New Money Crew turns its sights on Alcoa Corp. (NYSE: AA). Those of you who made it to my special live market update for Weekly Blitz Alert members already know materials names flooded the tape during the session. And if you weren’t able to join us — just take a look at Thursday’s Blitz Daily. If you guessed that this has something to do with the war in Ukraine, you win the prize!

Aluminum prices were soaring long before the war hit thanks to high European energy prices forcing producers to cut production. Now with the war cutting supply off from Rusal International — the biggest aluminum producer outside of China — a tight market suddenly got a lot tighter. 

Alcoa is one of the world’s top aluminum producers and bullish traders have been running wild in the options chains to take advantage.

Coming in the No. 2 spot is Starbucks Corp. (Nasdaq: SBUX). This is another name that hit the tape during yesterday’s live Blitz session. Shares of the coffee shop conglomerate have had a rough 2022 so far as it wrestles with a growing unionization effort in its stores. With the stock hovering around 52-week lows and a March 16 investor day as a coming catalyst, bullish options traders have taken aim on the monthly March options.

Closing out the Weekend Watchlist, we have another name that’s been active on the New Money Crew radar since the start of the war… Occidental Petroleum Corp. (NYSE: OXY) has had one heck of a week, rocketing as high as 35% from this past Friday’s close — earning a feature in Tuesday’s Blitz Daily in the middle of its run.

This is the kind of volatility that happens when you take 8% of the global oil supply off the market. Like the materials market, we were already in the middle of an energy crunch and the war has sent that trend into overdrive. We’re seeing lots of short-term bullish bets hit the tracker, which is likely to continue until we move out of winter.

Of course, for more detailed guidance through the volatile markets and big-money trades as we head into the weekend, check out my Wiretap Trade Alerts strategy! New trades are issued at 2:30 p.m. EST every Friday!

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WRITTEN BY<br>Lance Ippolito

Lance Ippolito

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