Be forewarned…this article is not going to be about technicals. As a professional trader sometimes story-telling is the best way to understand someone else’s trade or get in your own (as elaborated on in my last post on “Engineering a Trade“). So why did BTC/USD have that huge spike to 19,000 and that huge correction back down? What’s happening with BitCoin?
- $S has been the subject of lots M&A speculation since announcing interest in such a deal.
- $TMUS and $CHTR have been the primary targets mentioned in mainstream stories, but neither makes sense.
- $ERIC may be the true target and mainstream financial news may have slipped with a tip-off.
- Timeline of news on $ERIC vs that of $S is oddly fitting
Sprint ($S), a telecommunications company of which Softbank ($SFTBY) owns 80% of, has been in and out news cycles about a possible merger or acquisition for most of the year.
This years’ hype began on February 17th, 2017, when Reuters reported that Softbank was looking to sell their equity in Sprint to Deutsche Telekom, the parent company of $TMUS.
So my last “stocks to watch” post turned out to have a 100% winning rate. Had you taken on any of the positions listed there, you would have profited (to various extents and %s of course).
While that may be the only time that ever happens, I just felt like bragging a little bit. 10/10 on weekly stock pick performance is..well…pretty good.
But regardless, don’t consider all of the trades listed below to be profitable necessarily; some will, some won’t. That’s just how it is.
What this list is meant to be, is a list of stocks for you to consider adding to your watchlist. Nothing more and nothing less. With that said, here are some of the tickers that’ll be on my watchlist.
Hurricane Harvey has the mainstream financial news companies hyper-focused on which stocks or futures they think you should trade during the storm.
Most of the snippets I’ve seen or the commentaries that I’ve read focus on the obvious stuff.
Energy names in the oil and gasoline sector, home builder stocks (like $LOW and $HD), generator companies ($GNRC – I sent to the text alert service and traded it also. I bought calls Friday and sold most of them Monday pretty soon after the opening bell @ +155%), and insurance companies.
Last night though, as I was going over some money flow data from the day’s session I noticed something odd. Most of the major banks had net positive flows despite lower stock prices. This is very typical of institutional buying. The banks with the most in-flows were $C (+243.81 mil), $JPM and $WFC. They all have fairly large lending entities.
So I decided to see what storms have done to the financial sector in general in some of the larger more recent storms.
If you want to skip to end, the trend is that they move up during the duration of the storms and then continue onward in their prior trend afterwards. So watch those three tickers above as well as $XLF. I’ll be buying some more bank exposure as soon as I see the sector start to make a strong move up.
Trading Hurricane Harvey With Bank Stocks: Little chart history anyone?
October 25th, North American Storm Complex
Bottom Line: Watch bank stocks for a possible swing-trade soon.
The Solar Eclipse Resolution
So, as I went into more depth about on Sunday night, there seems to be market impact via solar eclipses…namely a $VIX ramp the week before the eclipse and then some volatility chop. The chop is normally in a downward trend afterward though.
You can check that post for some historical charts and the chart leading up to the eclipse yesterday. For simplicity, I’m just going to post the days leading up to yesterday on $VIX and this ‘resolution’ that is occurring so far (pull back).
Hurray, you were seemingly right so far! I wish I took your $NQ_F and $HG_F trades!
Yeah, that’s actually true. Those both worked out very well for me (copper is a highly conductive metal…magnetism and electricity are obviously related, so the impact of it caused by the solar eclipse is implied).
This is a new type of post that I will try to make each week (usually weekends, but sometimes during the week) where I share some stocks to watch, or at least that I’ll be watching based on recent Unusual Options Activity as well as some other market factors.
For full disclosure, I will let you know which ones I have positions in already. The names on this list that I don’t have positions in are names that I’ll be eyeing for opening positions in.