A Dark Horse Catalyst for Today’s Trading

Earn While You Learn! ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ [EARN WHILE YOU LEARN! JOIN OUR FREE LIVE TRADING SESSION!]( Hello investor, A Dark Horse Catalyst for Today’s Trading Traders shouldn’t over-analyze anything that happens in the market in the last two days. Wall Street is simply waiting until the next few catalysts before making sizable bets. Federal Chair Jerome Powell, of course, will make his speech on Friday at Jackson Hole. However, there might be a wild card that could move the market today. Key payroll revisions will be released today. Goldman Sachs economists expect the government’s preliminary benchmark revisions to reduce payroll growth by at least 600,000 for the year through March. So, it indicated a weaker labor market than investors originally thought. The data will be a bit old since it is for the period ending in March. At the same time, it may show that the labor market had weakened at a much quicker pace, thus the central bank should have acted sooner to cut interest rates. - “Our guess as to what is driving rates lower today/over the last week is the hyper focus on the payroll revisions,” said Dennis DeBusschere, founder of 22V Research. - “People seem to be assuming a large downward revision would increase the odds of more aggressive rate cuts signal at Jackson Hole. That seems fair. Also, it doesn’t mean recession odds go up.” Dennis DeBusschere, founder of 22V Research (Photo: Yahoo Finance) Bank of America clients poured into the S&P 500 lately with a $2.7 billion inflow. Can the momentum continue? Maybe, maybe not. Kenny Polcari at SlateStone Wealth noticed the volume was muted in the last few days. Because of the small volume, market moves “will be and are exaggerated as a result.” - “The momentum guys are driving the bus,” said Kenny Polcari at SlateStone Wealth. “Now the volumes have been trending lower as we move into the end of the month. Moves will be and are exaggerated as a result. And I think the recent rally is proof of that exaggeration.” In other words, momentum traders jumped back into the market because of momentum signals, rather than fundamental signals. Others seemed to stay on the sideline until the economic picture cleared up. As for Powell’s speech, investors won’t be surprised if Fed Chair hints at a rate cut. He isn’t expected to offer firm decisions on (1) whether the central bank will cut rates in September and (2) the size of the rate cut. Rather, Powell will likely keep his options open until the central bank receives the next batch of economic data, such as August’s jobs report. Invest in the Next Billion-Dollar Industry While It is Early Today’s Stock Pick: Archer Aviation (ACHR) Anybody who lives in Los Angeles know how horrible the traffic can get. The traffic is even more terrible if fans are heading to sports stadiums. Driving to Dodger Stadium is long and soul-crushing. That’s why fans often arrive the game late and leave early (to beat the traffic). Now, imagine this… For a price of an Uber ride, you can skip an hour-long traffic for a 12-minute trip to the stadium. That’s the future that Archer Aviation is building with its eVOTLs. The company has announced its planned network including vertiports at LAX, USC, Orange County, Santa Monica, Hollywood Burbank, Long Beach and Van Nuys. (Source: Archer Aviation) Archer also plans for locations in Bay Area — South San Francisco, Napa, San Jose, Oakland, and Livermore. Right now, only wealthy clients can afford helicopters for those kinds of rides. The cost is high at more than $10 per passenger per mile. Two passengers for a 20-mile ride will cost about half grand. Archer Aviation plans to launch its eVOTL fleet in 2025. The estimated cost is 2x cheaper than helicopter rides. Eventually, it plans to scale up that makes it possible to ride at a rate cheaper than UberX. (Source: Archer Aviation) The business model is poised to be more profitable than Uber’s single ride share car. Suppose that 25 miles is the average trip distance. Archer could go 150 MPH in the air, while Uber is limited to 25 MPH due to road traffic and speed limits. The cost is higher for Archer, but the trip takes just 12 minutes versus 60 minutes for Uber. As a result, Archer can utilize its aircraft 25 times per day, while Uber is limited to 10 trips per day. All in all, Archer can earn $2.4 million per eVOTL versus Uber’s $136,000. (Source: Archer Aviation) It is not “fantasy” anymore. The industry is getting serious. Archer Aviation has received indicative orders for nearly $6 billion. They won’t collect these revenues until eVOTLs are delivered, but deposits have been received. (Source: Archer Aviation) What’s more, Archer just delivered its first Midnight model to the U.S. Air Force as part of Archer’s AFWERX Agility Prime contract. Future Flight Global just signed a contract to purchase up to 116 Midnight aircraft worth up to $580 million with an initial deposit already paid. To scale up its operations, Archer partnered with Stellantis to manufacture eVOTLs. The carmaker already invested nearly $300 million in Archer, and more fundings are expected to achieve manufacturing goals. It was a smart partnership because it allowed Stellantis to front-load manufacturing labor costs necessary to scale up to 650 aircraft annually. In exchange, Stellantis will get Archer shares on a rolling quarterly basis — based on the total labor costs incurred in the quarter. The market is poised to grow rapidly. Morgan Stanley predicts urban air mobility to be a $1+ trillion market by 2040. Archer is racing ahead to being first to market in 2025. Archer plans to scale up manufacturing to ~2k eVOTLs per year between 2025 and 2028. (Source: Archer Aviation) Lastly, Archer projects to generate ~$25 million in 2026 before scaling up rapidly to $3+ billion in 2028. These projections shouldn’t be taken seriously since most startups’ projections are off the mark. But it represents an opportunity to invest in a billion-dollar company while it is early. (Source: Archer Aviation) Bottom line: The risk is high. There’s no question about it. On the other hand, Archer Aviation represents an opportunity to invest in a massive, massive industry that is poised to grow into a major player. This stock may be a good addition to a speculative allocation in a portfolio. [EARN WHILE YOU LEARN! JOIN OUR FREE LIVE TRADING SESSION!](       © All Rights Reserved, Trade Alliance [Unsubscribe]( | [Manage Preferences](