THESE STOCKS WILL BLAST TOMORROW

Summary

This video delves into market analysis, highlighting key stocks like Palantir (PLTR), Hims (HIMS), and Shell (SHL) ahead of major market events, including earnings season, interest rate decisions, and the upcoming election. The presenter provides technical analysis on stocks, emphasizing volatility and key levels to watch, while also discussing big money trades and geopolitical impacts on the market. Viewers are given actionable insights for both short-term trading opportunities and long-term strategies, offering a comprehensive overview of the week’s market dynamics.

Takeaways

• 😀 55% of S&P 500 stocks closed up in the green today, though the market remains volatile due to ongoing election and earnings reports.
• 😀 This week is crucial for the stock market, with the election and an interest rate decision by the FOMC on Thursday causing significant market movements.
• 😀 Palantir (PLTR) reported strong earnings, beating revenue and profit expectations, with 30% year-over-year growth. The stock surged to all-time highs, but caution is advised due to its high price after such a rally.
• 😀 Hims & Hers (HIMS) also reported impressive earnings, with a 77% revenue increase. Despite its growth potential, it may not be a good long-term buy at current levels.
• 😀 The upcoming earnings reports to watch include SMCI, Celsius (CELH), CVS, and DraftKings, among others.
• 😀 DJT stock (related to Donald Trump’s political movement) is highly volatile, showing significant swings in price. It is influenced by political prediction markets and investor sentiment regarding the election.
• 😀 As Trump’s chances of winning the election increase, crypto-related stocks like Coinbase (COIN) and MicroStrategy (MSTR) are also benefiting from this sentiment.
• 😀 Marijuana stocks, such as CGC (Canopy Growth), saw massive gains, with CGC up 133% in one day. The market is reacting to the potential for marijuana legalization in the upcoming election.
• 😀 The Federal Reserve's interest rate decision on Thursday will be a key event to watch. The market is expecting a 25 basis point cut, which could have major impacts on market sentiment and investor decisions.
• 😀 The overall market shows signs of increased selling pressure, with major tech stocks like Apple, Nvidia, and Microsoft showing weakness. Support levels around $569–$568 on the SPY are crucial to watch for potential market direction.

Q & A

What is the focus of the video regarding stock market trends?

The video focuses on current stock market trends, highlighting the impacts of earnings reports, geopolitical events, the upcoming U.S. election, and the FOMC interest rate decision. It emphasizes the importance of being aware of these factors for both short-term and long-term traders.

Which stocks are specifically mentioned in the video, and what is their relevance?

The stocks mentioned include Palantir (PLTR), Hims & Hers (HIMS), Canopy Growth (CGC), SQQQ (an inverse ETF), and Shell (SHL). These stocks are relevant due to their connections to current market events, such as AI trends, marijuana legalization, oil price movements, and upcoming political developments.

What role does the U.S. election play in the stock market discussed in the video?

The U.S. election is expected to impact the stock market significantly, particularly for stocks related to cryptocurrencies (like Coinbase and MSTR) and marijuana legalization (like CGC). Depending on the outcome, some sectors may experience increased volatility and potential upside or downside.

Why is there particular attention on Palantir's (PLTR) stock?

Palantir (PLTR) is gaining attention because of its involvement in AI-driven industries. With strong growth prospects in AI, the stock is seen as having both short-term trading potential and long-term growth opportunities, particularly as the tech sector expands.

How does the election affect stocks like Hims & Hers (HIMS)?

Hims & Hers (HIMS) is a growth stock that could be impacted by the election through changes in healthcare policies. While the stock has seen significant gains post-earnings, its high valuation may make it less appealing for long-term investors, though it could still provide opportunities for short-term traders.

What is the significance of the FOMC interest rate decision discussed in the video?

The FOMC interest rate decision is a key event that could influence market sentiment. The expectation is for a 25 basis point rate cut, which may have widespread implications for stock prices, especially in growth sectors like tech, as well as for broader market movements.

What are the risks of trading options, as highlighted in the video?

The video emphasizes the risks associated with trading options, especially aggressive trades like those on Shell (SHL) with out-of-the-money call options. Such trades can be volatile and involve significant risk, so traders are advised to manage their positions carefully and consider averaging in and out of trades.

What does 'averaging in and averaging out' mean in the context of trading?

Averaging in and averaging out refers to gradually entering or exiting a trade rather than committing the full position at once. This strategy can help smooth out gains and losses, reduce emotional stress during market fluctuations, and provide flexibility in managing trades.

What is the rationale behind betting on Shell (SHL) despite its aggressive options play?

The rationale for betting on Shell (SHL) is tied to the rising price of crude oil, which benefits companies like Shell. The video mentions that a large $1.48 million call option play suggests a belief in the stock's potential to rise. Despite the aggressive nature of the trade, the geopolitical situation and oil price trends provide a bullish outlook.

Why are inverse ETFs like SQQQ mentioned in the video?

Inverse ETFs like SQQQ are mentioned because they allow traders to profit from market downturns. In the current market environment, where volatility and market corrections are expected, such ETFs can be useful tools for those looking to hedge or capitalize on potential declines in major indices like the NASDAQ.