Archive Category: Wednesday Windfalls Alerts

Congratulations on a solid win this week! All three of our plays have made meaningful advances since we got in on Monday afternoon. At last glance, the iShares MSCI Japan ETF (EWJ) had gained 2.1%… Shares of Dropbox Inc. (DBX) are up 6.1%… And Hecla Mining Co. (HL) shares are 6.3% higher.

A majority of stocks fell to start the week. It seems the persistent rise in interest rates is in the driver’s seat. Growth stocks are getting hit the worst. It’s tough to say right now whether we’ll see a strong snapback in those growth names throughout the week, or if investors will continue to rotate out of them … and into other less “growthy” names. We’ll spread our bets this week with one play on a growth-oriented tech company … as well as a gold miner and a diversified foreign-developed market exchange-traded fund (ETF).

We’ve seen mixed results on this week’s trades. Shares of GDX and UAA have gained a bit since Monday afternoon, up 0.9% and 0.3% at last glance. Those moves aren’t large enough to create significant moves in the options contracts we bought, so it’s likely we’ll manage a slight gain on our GDX calls and a small loss on our UAA calls. Otherwise, shares of EWZ have sold off by about 2% since Monday afternoon, leaving us with a heftier loss on our call options on that stock. We haven’t hit on a net win this week, though the size of our loss will be on the lower end — likely under 30%.

So far, stocks have edged higher in their debut trading session of 2022. But we haven’t quite seen the strong rally that’s typical of the Santa Claus Rally. That period began on Monday, December 27, and ends this coming Wednesday, just as we’re due to exit this week’s batch of trades. I’m hopeful we’ll see a pop in the broad market early this week as traders return and begin repopulating their portfolios. My system and I have identified three plays that are poised to rally. As is typical, we’ll spread our bets across three uncorrelated market sectors.

We’ve seen mixed results on this week’s trades, though we should be able to exit with a slight profit. Shares of Inovio Pharmaceuticals (INO) disappointed, losing around 3.5% since our Monday afternoon entry. That puts our $6.50-strike call options down close to 90%. Otherwise, we have roughly a breakeven trade on Stitch Fix (SFIX), with the $18-strike calls we purchased trading for about 4% over our entry. Our best result this week came from United States Steel (X). Shares of the stock rose 4.7%. At last glance, our $22-strike call options have doubled in value.