Option Pit Stop [fstp, logo, header] June 6, 2024 Option Pit ONLY: Access Tomorrow's Free Class on Stock Splits and Reverse Splits AHEAD of Nvidia's 10-for-1 Split Friday, June 7th: [Add To Your Best Calendar Here]( [ag views, logo, header] AG is out on assignment, but we have special piece from Mark. Hey Traders, Talking about their bookâ¦. This is what analysts, money managers and hedge funds do on CNBC all day every day. CNBC. Fox Business, Yahoo Finance, and to a lesser extent Bloomberg literally are just hours and hours of investment managers and analysts talking up the holdings they haveâ¦or the holdings they are recommending. You could call it front runningâ¦.Manager A discloses a huge long position in a companyâ¦then they go on air and talk about why. Like it or notâ¦that is the way the business worksâ¦.unless you are a regular person or a millennialâ¦then that is not how it works. This brings me to Gamestop and AMCâ¦.now I am not going to sit here and tell you I love the meme tradingâ¦I do notâ¦. But this headline really troubles me: [ded] What did Keith Gill do that normal traders do not? He disclosed his position on Reddit and Twitter instead of CNBCâ¦.thats about it. Yet, because his opinion can bring traders to the dinner tableâ¦he faces getting kicked off his investment platformâ¦. Itâs not like he did not disclose his positionâ¦he didâ¦its because the bankers donât like to have ...what they cannot control. We have seen the redditors destroy a hedge fund or too (sorry Melvin Captial)....we have seen them move Gamestop up and down huge percentages in a day: [ded] Since this started GME has gone from 15â¦to 65 to 18 to 40â¦.obviously the banks don't like that THEY are not the ones pushing a stock up or downâ¦it is regular old traders. Yes, they might say they are âprotectingâ investorsâ¦.but are they reallyâ¦. How is a bunch of redditors following the Roaring Kitty any different than this headline: [ded] With a headline like this should Tepper be kicked off Treasury Direct (the portable way to directly buy and sell bonds).... Noâ¦that would be sillyâ¦but a smart guy likes a stock ... .discloses he is long ... .and people buy itâ¦and now he is going to lose his ability to trade⦠That is just hypocrisy at its best. We should not stand for it⦠I am not suggesting buying GMEâ¦.I wouldn'tâ¦nor would I say to buy AMCâ¦. What I am saying is that retail investors have the right to listen to who they wantâ¦.even if they don't work at one of the huge banks. - Mark  [logo, pit profits] Want to find YOUR winning fit? Give our Customer Care Team a call at [1-888-872-3301](tel:/1-888-872-3301) Monday-Friday from 9 a.m. - 5 p.m. EST. Or email them anytime at [support@optionpit.com](mailto:/support@optionpit.com)  [frep] This is not looking like a healthy market Hey Traders, Watch the video below where I join BNN Bloomberg to discuss what I think are the top catalysts that could break the bull market. [bnn]( [Click here to watch me discuss on Bloomber News!]( - Mark --------------------------------------------------------------- Receive the Option Pit "Ticker of the Week" breakdowns as soon as they are released. [Click this link to sign up!](  [fpri] Service Robots Will Shock Investors Hey Income Hunters, The robot invasion has started ⦠First a Starbucks article about 100 service robots being put into service in South Korean stores and many other stores in the area ⦠Then I went to a new cafe that opened up near me in Gulfport, Florida and our food was delivered to the table by robots.  Reality is setting it ⦠Humans being replaced by robots is quickly becoming like horses being replaced by automobiles in the early 1900s. We may see the drop in employment begin as soon as Friday when the monthly non-farm payroll numbers are released. Investors have no idea what may be about to happen ⦠[Click through to see a shocking development and what it means for you â¦Â]( - Bill --------------------------------------------------------------- Never miss an edition of Bill Griffo's Power Income Newsletter ever again. [Click this link to sign up!](  [fpip] It Pays to Cheat ⦠? Hey Shoppers, Three big things going on this week. First we have nonfarm payrolls on Friday morning, which almost always moves the market. Second we have Nvidia (Ticker: NVDA) stock splitting on Friday. If you havenât already, you absolutely need to sign up for Hannah Selnerâs Option Pit Research where she is writing a series to walk you though the stock split. Included with that is a live session with Mark Sebastian all about the split and how he is going to play it. [Sign up for all that good stuff here.]( Lastly, what do we think about this whole Gamestop (Ticker: GME) slash Roaring Kitty slash Morgan Stanley Etrade thing? My first thoughts go to my days on the Chicago Board Options Exchange as a market maker in the pit and the Goldman Sachs broker walks in with an enormous order to buy calls (or puts) in one of our random stocks that doesnât trade very much. Taking the other side of that trade, you had to double up on your hedge and lean his way. It also makes me think of all the fines these big banks pay on a regular basis. [JP Morgan Chase (Ticker: JPM) between 2011 and 2014 paid $35,241,500,000 in penalties related to the 2008 financial crisis and promoting mortgage backed securities.]( In March of this year, JPM paid $350,000,000 for[ âinadequate trade reportingâ.]( I guess it pays to cheat. How about the first time around with Gamestop and Roaring Kitty and Robinhood protected the short sellers by not allowing buy orders in the stock. Now Morgan Stanley is considering kicking Roaring Kitty off their trading platform. Life is not fair, we know that but these big guys are just pure greed and evil. [Letâs take a look at the GME chart and a way to play it.]( - Licia --------------------------------------------------------------- Join Licia's trading community and start receiving her Profits In Pumps Newsletter. [Click this link to sign up!](  [fprm] Top 5 Most Likely Investment Trends Based on Recent D.C. Announcements Hey Influence Traders, The fifth and final installment of our 5-part Capitol Gains series has arrived! In the last article, we outlined the sources I use to maintain my inside edge on whatâs happening in D.C. The past four articles on how my process works were great, but you probably want to know where it is going to lead us. So, in this final piece, we will explore the top five trends Iâm anticipating over the next six months based on the announcements from D.C. that Iâm following. Introduction In the ever-evolving financial markets, staying ahead requires a keen understanding of how government actions and policy announcements influence various sectors. Recent developments in Washington D.C. have set the stage for several promising investment trends. In this final installment of our series, we will explore the top five trends that I see over the next six months based on recent announcements from D.C., and how we can strategically position ourselves to capitalize on them. - Renewable Energy and Green Technologies The Biden administration has made combating climate change a top priority, leading to a surge in policies and initiatives aimed at promoting renewable energy and green technologies. Key drivers include: - Infrastructure Investment: The Infrastructure Investment and Jobs Act allocates significant funding for renewable energy projects, including solar, wind, and electric vehicle (EV) infrastructure. This creates opportunities for companies involved in renewable energy production, technology, and infrastructure development.
- Tax Incentives:Â The administration has proposed and implemented various tax incentives to encourage investments in renewable energy and energy efficiency. These incentives benefit companies producing solar panels, wind turbines, and EVs.
- Regulatory Support: Stricter environmental regulations and targets for reducing carbon emissions further support the growth of renewable energy sectors. Companies focused on sustainability and environmental innovation are likely to see increased demand. Investment Opportunities: Many want to keep riding the Tesla (Ticker: TSLA) train, but I think it has a tough road in the near term. Iâm looking more towards energy providers like Nuscale Power Corp. (Ticker: SMR), NextEra Energy (Ticker: NEE), and First Solar (Ticker: FSLR), which are well-positioned to benefit from the renewable energy push. Additionally, ETFs focused on clean energy, such as the iShares Global Clean Energy ETF (Ticker: ICLN), provide diversified exposure to this trend. - Infrastructure Development The passage of the Infrastructure Investment and Jobs Act marks a significant commitment to modernizing America's infrastructure. Key areas of focus include transportation, broadband internet, and industrial metals: - Transportation Projects: Significant investments in roads, bridges, railways, and public transit systems create opportunities for construction and engineering firms.
- Broadband Expansion:Â The act allocates funding for expanding broadband internet access, especially in rural areas. This benefits telecommunications companies and firms involved in building out broadband infrastructure, like cellular towers.
- Infrastructure and Industrial Metals: With various countries, particularly in Europe and the U.S., planning substantial infrastructure projects to stimulate economic recovery, the demand for industrial metals and related services is expected to rise. Investment Opportunities: Companies like Caterpillar (Ticker: CAT), United Rentals (Ticker: URI), American Tower Corporation (Ticker: AMT), and Freeport-McMoRan (Ticker: FCX) are expected to benefit from increased infrastructure spending. And companies building out mining supply chains, like rare earth supplier MP Materials (Ticker: MP), are on my radar. An easy way to play the sector is through an infrastructure-focused ETF, such as the Global X U.S. Infrastructure Development ETF (Ticker: PAVE), which offers exposure to a broad range of companies involved in infrastructure projects. - Healthcare and Biotechnology The ongoing focus on healthcare reforms and investments in medical research continues to drive growth in the healthcare and biotechnology sectors. Key factors include: - Pandemic Response: Efforts to prepare for the next âpandemic,â including vaccine development and distribution, testing, and treatment, remain a priority. Moreover, the COVID-19 pandemic accelerated the adoption of digital health solutions and personalized medicine.
- Healthcare Access and Affordability:Â Expansion of Affordable Care Act subsidies and Medicaid, along with efforts to control drug prices, impact insurers, pharmaceutical companies, and healthcare providers. Companies focusing on innovative treatments and cost-effective solutions stand to benefit.
- Medical Research Funding: Increased government funding for medical research supports biotechnology firms developing new therapies and treatments. Investment Opportunities: Companies like Moderna (Ticker: MRNA), Amgen (Ticker: AMGN), UnitedHealth Group (Ticker: UNH), and Teladoc Health (Ticker: TDOC) are positioned to benefit from healthcare initiatives. Moreover, weight loss is a hot topic today, and Novo Nordisk (Ticker: NVO) and Eli Lilly (Ticker: LLY) are leading in the development of novel weight-loss drugs. Additionally, biotechnology-focused ETFs, such as the iShares Nasdaq Biotechnology ETF (Ticker: IBB), are conservative ways to get diversified exposure to innovative biotech companies. - Defense and Cybersecurity Rising geopolitical tensions, particularly between the U.S. and China, have seen increases in defense spending and significant investment opportunities. Moreover, frequent cyber-attacks in the public and private sectors have seen businesses and governments investing heavily to protect critical infrastructure and data. Key drivers include: - Geopolitical Tensions: Rising tensions between major powers such as the U.S. and China, along with conflicts in regions like the Middle East and Ukraine, are driving increased defense spending. Countries are focusing on modernizing their military capabilities and enhancing their defense infrastructure.
- Technological Advancements:Â Investments in advanced technologies, such as artificial intelligence, drones, and autonomous systems, support innovation in the defense sector. Advancements in these areas are becoming crucial components of modern military strategies. As nations seek to maintain technological superiority, investments in these areas will grow.
- Cybersecurity Initiatives: With growing concerns about cyber threats, government initiatives to enhance cybersecurity measures benefit companies providing cybersecurity solutions and services. Investment Opportunities: Large defense primes with extensive government contracts, like Lockheed Martin (Ticker: LMT), Northrop Grumman (Ticker: NOC), Raytheon Technologies (Ticker: RTX), and General Dynamics (Ticker: GD) will see continued benefits from defense bills. Forward thinking niche players, like AeroVironment (Ticker: AVAV) and Rheinmetall AG (Ticker: RNMBY) will also benefit from the realities of current theaters of conflict. Meanwhile, as cyber threats grow, the need for services from Palantier (Ticker: PLTR), CrowdStrike (Ticker: CRWD), Palo Alto Networks (Ticker: PANW), and Fortinet (Ticker: FTNT) are expected to see continued demand. If all of that is overwhelming, defense and cybersecurity-focused ETFs, such as the iShares U.S. Aerospace & Defense ETF (Ticker: ITA), offer broad exposure to these sectors. - Technology and Digital Infrastructure The push for technological advancement, including 5G deployment and digital infrastructure, presents significant growth opportunities. Similarly, the U.S.âs push to shore up advanced chip supply chains is driving investment. - AI and Advanced Technologies: The competition in AI and advanced technologies is intensifying, especially between major economies like the U.S. and China. Government support for research and development in cutting-edge technologies, such as artificial intelligence, quantum computing and advanced manufacturing, will see significant investments in companies driving innovation. - 5G Deployment: Continued rollout of 5G technology enhances connectivity and supports growth in various technology sectors, including telecommunications, IoT (Internet of Things), and cloud computing.
- Digital Infrastructure: Investments in digital infrastructure, such as data centers and broadband networks, support companies involved in building and maintaining this infrastructure. Investment Opportunities: Companies like NVIDIA (Ticker: NVDA), Microsoft (Ticker: MSFT), and Qualcomm (Ticker: QCOM) are poised to benefit from the expansion of 5G and AI development. Texas Instruments (Ticker: TXN), Taiwan Semiconductor (Ticker: TSM), and Advanced Micro Devices (Ticker: AMD) are leading the chip war. The Global X Data Center & Digital Infrastructure (Ticker: DTCR) is an option for broad sector exposure. Conclusion Recent announcements and policy directions in Washington D.C. have set the stage for several promising investment trends over the next six months. By focusing on renewable energy and green technologies, infrastructure development, healthcare and biotechnology, defense and cybersecurity, and technology and digital infrastructure, investors can strategically position themselves to capitalize on emerging opportunities. Understanding the implications of government actions and staying informed about policy developments is crucial for making informed investment decisions ⦠at the right time. This concludes our five-part series on the value of having a D.C. insider on your team, and how it translates to stock market success. By leveraging my unique access to exclusive information and combining it with strategic analysis, investors can stay ahead of the curve and increase their chances of achieving investment success. Thank you for following along, and I look forward to continuing to provide you valuable insights and opportunities. - Frank --------------------------------------------------------------- Get all your DC Insider info inside of Frank Gregory's "Power Moves" Newsletter. [Click this link to sign up!]( --------------------------------------------------------------- Don't miss when our traders go live! Get an alert everytime we open the live rooms to all of our readers for free by selecting the calendar you use below. Add Option Pit Live Events to Your Calendar [Apple]( [Google]( [Outlook]( [Outlook.com]( [Office 365]( [Yahoo](   [glossary, logo] There are plenty of terms in the trading world that need explaining. The Option Pit Glossary is here to help. Today's phrase is:  LEAPS - Long-Term Equity AnticiPation Securities, or LEAPS, are options that expire in January and can go several years out. [ftsp] All the Right Options. The Option Pit Team brings more than 150 years of experience to you every day. From the trading pits of Chicago to the world's largest banks to the halls of power in DC -- they've done it all. Now theyâre collectively focused on one thing: making YOU a better, more profitable trader. Click the button below to schedule a call with our concierge Customer Care Team to find your best fit today. DISCLAIMER: FOR EDUCATIONAL AND INFORMATION PURPOSES ONLY; NOT INVESTMENT ADVICE. The materials presented from Option Pit LLC are for your informational and educational purposes only. Neither Option Pit LLC nor its employees offer investment, legal or tax advice of any kind, and the analysis displayed with various tools does not constitute investment, legal or tax advice and should not be interpreted as such. Using the data and analysis contained in the materials for reasons other than the informational and educational purposes intended is at the userâs own risk.
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