Mark’s Watchlist: Agriculture is Moo-ving
This stock landed on my Watchlist after it flew up 28% in five days. And I knew it would do it again.
Which is why I recommended my Profit Revolution members buy a 72-cent call on October 25…
A call that is worth $2.40 today for those that held on, after FCEL skyrocketed 24% from Friday’s close to this morning’s open.
And then, check out today’s Watchlist.
- VanEck Agribusiness ETF (NYSEARCA:MOO)
Agriculture is moo-ving today.
Soybeans, corn, and wheat are all up strongly. And MOO, an ETF that holds a number of agriculture stocks, is sitting near a 52-week high.
Look – food prices are going through the roof. And if you want to play inflation, then consider the fact that everything we eat is on the rally…
And start looking at “food stocks” like MOO.
- Rekor Systems Inc. (Nasdaq:REKR)
Software company REKR isn’t one that’s typically on my Watchlist. But Money Morning LIVE host Olivia Voz brought it up this morning, so I took a deeper look…
And it seems REKR has the recipe for a short squeeze.
This stock has a negative borrow rate. That means that you have to pay to be short the stock. You don’t get paid.
But as the stock rallies, this borrow rate is going up. And that means we could see a short squeeze push this thing through the roof.
The November $15 calls are only $1.45. You could buy those outright, or you could create an even cheaper call spread by selling the November $17.50 calls against it.
- iShares Russell 2000 ETF (NYSEARCA:IWM)
The Russell 2000 got a lift at the end of the day yesterday, moving exactly in step with Russell Rhoads’ analysis when the CBOE insider joined me for a Profit Revolution live session last week.
Russell said that the small-cap index is actually the only index with a strong history of a Santa-Claus rally.
From November 1 to Christmas, the Russell 2000 has the best outperformance of the market relative to other indexes. And when small caps are strong, well, that’s bullish for the rest of the market.
Based on yesterday’s movement in the small-cap index, I wouldn’t be surprised to see the S&P hit 4,650 by the end of this week…
And 5,000 by the end of the year.
One Trader, $1.2 Million – Today’s Impact Money Trade
Click To Enlarge
I’m almost 100% positive that both of these trades came from the same big-money trader.
Within a couple of minutes, someone sold 37,876 of the TWTR November 19, 2021 $47 puts and 36,006 of the SNAP November 19, 2021 $44 puts.
With both trades together, this buyer just collected over $1.2 million in premium.
We’ve got a big fund drawing a clear line in the sand on SNAP and TWTR here – but what does this trade really mean?
And would I dare to follow it?
Many people assume that a put sale is bullish. But really, I’d define it more so as not bearish.
This trader isn’t saying to the moon to SNAP and TWTR. Rather, they’re like Gandalf – and they’re saying “YOU SHALL NOT PASS.”
They want TWTR to stay above $47, and SNAP to stay above $44.
When you buy a call, you’re bullish. You think the stock will go up. But when you sell a put, you simply don’t think it’ll go down.
I broke down this analysis before the market even opened this morning during Money Morning LIVE, a morning show where my colleagues and I prep you for a day of trading. And we got good feedback on this morning’s:
Tune in tomorrow with Don Da Boss – it kicks off at 8:30AM right here.
Now, I don’t disagree with this trade. SNAP in particular has been on my radar for a while. And I expect I’ll be hopping on board with my Profit Revolution members soon.
But first, I want to see some follow through. I want SNAP to break $55, and stay up for more than one day.
Once I see some call and price action pushing these names higher for a couple days in a row, that’s when I’ll jump on board.
Traders Don’t Care About the Fed Meeting
Now, this activity is interesting, especially ahead of this week’s Fed meeting, set to kick off later today.
Typically, volatility spikes into the Fed meeting. But right now, it’s dying off – and I think it’ll continue to do just that.
Traders aren’t racing for protection against the Fed, and I’ve got a feeling this is going to be more of a non-event than what we typically expect from the Fed.
Check back tomorrow for more Fed-meeting analysis,
Founder, Profit Takeover
November 02 2021