Dear Fellow Investor,
Below is a recap video of our portfolio and two new trades to get moving on momentum.
There are several factors pushing capital back into the markets. Among them is the breakthrough of the 4,500 level on the S&P 500.
That psychological barrier was a major milestone for the markets and immediately kicked off speculation about hitting the – GET THIS – 5,000 level by the end of next year.
Money’s going to run. I won’t complain because the more money that moves in the market (and there are trillions on the sideline), the better we’ll see our strategy work.
Now, a quick update on the state of the portfolio.
Zynga (NASDAQ:ZNGA)
We exited the Zynga options trade at gains of 108% on our first leg and another 77% on the second leg. I hope that your trades were even better based on your entry price.
But Zynga stock continues to run. We are holding a $8.50 trailing stop at the moment. This stock could continue to breakout in the next week.
Gaming & Leisure Properties (NASDAQ:GLPI)
A holdover from our original portfolio, this position has paid off. Our entry price was measured at $2.66 on the October 15, 2021 $45 call. That contract is currently north of $6.00.
We’re going to let this run a little while longer. If the stock pulls back to $50, we will take profits off the table.
Levi Strauss (NYSE:LEVI)
Our LEVI October 15, 2021 $27 call has taken on water. This was from the original portfolio that has struggled to attract capital due to the delta variant and ongoing worries about consumer goods.
I’m monitoring this position closely and we’ll take it off the table by mid-September if we don’t see any level of improvement.
PAM Transport (NASDAQ:PTSI)
We entered this position at $33.40 on Aug. 24, and we’ve seen about a 9.3% run on the stock. I expect the company will continue to run as higher freight costs and competitive advantages pay off in the fall.
I think the stock can easily go to $40 in the weeks ahead. Keep that trailing stop at 7% right now, which would be an exit at $33.96.
TrueCar (NASDAQ:TRUE)
TrueCar has been signing partnership agreements with credit unions and other financial institutions heading into the fall.
This could be a very positive catalyst for the stock as it aims to rebound off recent weakness. We’re looking for that to pull the stock back to recent highs.
I still rate the stock a buy and recommend the Oct. 15, 2021 $4.00 (TRUE211015C00004000) call if it is trading under $0.40.
Co-Diagnostics (NASDAQ:CODX)
Our diagnostics stock continues to whipsaw and looks for a breakout above that $11.20 resistance level. Right now, we are being patient.
As students return to school and the emphasis centers on testing and not shutdowns, I’m expecting a solid quarter for the company. We will continue to hold our position.
Today’s additions…
ARES Management (NYSE:ARES)
This best-in-class private equity giant has been on a solid run over the last month. We’re looking for this stock to move quickly toward the $85 to $90 level in the weeks ahead.
Strong institutional buying continues to flood this firm. With money pouring off the sidelines after the S&P 500 hit 4,500, this is a very good time for alternative investment managers.
The stock is rated a buy. If you are buying the stock, set a 7% trailing stop on your position. For example, if you pay $80.00 for a share, your trailing stop would be $74.40.
Cameco Corporation (NYSE:CCJ)
As I noted in the video, Sprott Management has made huge purchases in uranium on the spot market. As a result, the price of uranium has been soaring.
This was a bonus pick today, and it carries a more speculative flair to it. But it is possible that in the week ahead, we will see a lot of investors chase Cameco (the largest publicly traded uranium company) higher.
We’ve bought the stock and taken a tight trailing stop. We are also speculating on the Oct. 15, 2021 $22 call for under $1.50. I’m very excited about this position.
As I’ve noted, I’m looking for another trade today as we head into the afternoon session.
I’ll also be back with a watchlist for you on Tuesday morning. I hope that you all have a wonderful Labor Day weekend.
Best,
Garrett Baldwin