When the world gets back to normal, you have to believe people will be itching to get back on the road and start traveling again. There are a number of industries that will benefit from this, of course.
And one stock from a beaten down sector in 2020 is making new all time highs right now! This is the kind of trade I want to get into.
In lieu of our regular monthly options conference call to kick of February, as promised, here is a recording to the latest Members Only All Star Charts Conference call, hosted by JC Parets.
When semiconductor stocks are making all-time highs, I always pay attention. And when they also appear on the All Star Charts Young Aristocrats scan? Well, pass the gravy. Daddy's ready to eat!
And a company with a market cap measured in Trillions (with a capital T), is quietly setting up beautifully with volatility near the lowest levels of the year.
Stocks getting squeezed are all the rage these days, and rightly so. Some of the moves have been epic. The reasons for each squeeze vary from stock to stock, but the price action is hard to ignore.
With that in mind, we've identified some potential short squeezes that also have the benefit of the technicals lining up in our favor. Check out our recent Freshly Squeezed report.
One of the names on the list looks like it's ready to go...
During a quick perusal of ETFs today, I noticed some extremely rich volatility being priced into options on the Retailers ETF $XRT - which isn't entirely surprising given the price action over the past week.
While volatility can certainly continue here, my gut tells me the premiums will fade away soon. Implied volatility is driven by fear and greed, but eventually the marketplace adjusts to the "new normal" and the premiums people will pay for volatility they are now used to will subside. This is where it can be advantageous to put on delta neutral credit spreads.
Earlier this week, the All Star Charts research team did a deep dive on China stocks. Say what you will about the political tension between our two countries, we speculators only care about where money can be made. And when it comes to China, using options to define our risks makes so much sense here.
One of the stocks highlighted is in the hot electronic vehicles space that has me interested.
One of our biggest winning trades of 2020 has been consolidating over the past month and is setting up for what looks like another high-intensity workout. While it would be wishful thinking to expect another complementary ride like the last one, I do think there is a way to capture some gains without having to push all out again!
Software names have been leading the charge in this bull market. And if stocks are setting up for another extension of this bull run, I expect a lot of the leading stocks will come from the software space.
While scanning the latest All Star Charts Quarterly Playbook, one stock the team highlighted gave me a buzz of excitement. A household name found on seemingly every corner in America is breaking out and giving us a brief pullback to get in.