You guys in the chat room have been on fire lately!
I love the camaraderie that has been built among you guys and gals. The ideas, the mutual support, the multiple sets of eyes when a position needs our attention. So great.
You're all ONE! OF! US!
With this in mind, today's trade is in a name that has been discussed a few times of late in the chat. I've been waiting for a tradable support level to reveal itself, and we may be getting it right now, so let's get to it....
"First they scare 'em out, then they wear 'em out."
That's a famous old Wall Street saying. And I agree with it 100%.
In Bitcoin, the "scare" post-100K might not have been that scary (or maybe it's yet to come?), but it definitely feels like we're in the "wear 'em out" phase right now.
And my gut tells me the next move higher will catch the chasers by surprise. That's what I want to position for.
We've seen some fast moving breakouts during the recent stage of this bull market cycle.
I'm not calling for the bull market to end. In fact, I think it continues for a while longer. But its highly likely the pace of prices increases slows.
With this in mind, today's trade is the perfect kind of play for such an environment
The price of $FXI is going in the wrong direction. And as we know, only price pays. Price is truth.
Due to two previous "covered call" premium sales against our long January 2026 35-strike calls and more than one year until our long calls expire, I'm going to get creative with our position to keep the dream alive. I think we can afford to be patient.
I'm confident in doing so because ending the campaign here would only result in a small loss. So there's no panic.
We've got Nvidia earnings after the bell this afternoon. The feeling I shared to my analysts today -- and they all agreed -- is that if Nvidia disappoints, the likely result will be a small speedbump for the overall stock market. But if investors cheer the Nvidia earnings results, then gas is going to get poured on this bull market.
The Russell 2000 Small Cap ETF $IWM does not have direct exposure to $NVDA, so our risks feel limited on the downside. However, in a resumption of the bull market, small caps have a good chance of ripping to and through new highs.
Our last trade idea post was titled "European Vacation." Today's trade is in a name that is most definitely in the vacation theme.
And if you've attempted to book a hotel room in the past year, you know that rates are soaring. This might be bad for budget-sensitive travelers, but it can be bullish for investors.
Looking at a basket of the fifty biggest names in Europe, we've got a clean level to bet against for a rotation higher. And a volatility picture that offers us an edge to play it.