Financial News vs. Noise
I will be on Bloomberg today at 4:30pm EST to talk about meme stocks. With the Reddit IPO, Truth Social, etc. there should be a lot to talk about.
Speaking of Truth Social, so far so good this morning as it is up 19%
Trump’s Truth Social is going public today. Experts warn $9 billion valuation defies logic
Matthew Tuttle, CEO of Tuttle Capital Management, told CNN that Trump Media is probably not worth anything close to $9 billion.
“But it doesn’t really matter,” he said.
Tuttle noted that there is a history of SPACs spiking on their first day of trading, and he placed options bets that stand to make money if the stock shoots up.
“Because of what this is, and because it’s Trump – you’ve got people expecting this thing will take off tomorrow,” he said.
As I said, this stuff can get weird on symbol change day, so we will see. I did sell my shares yesterday but added some weekly calls to what I already had.
Not sure exactly what Bloomberg is going to want to talk about so as an aside here is how I would look at things like this. I was raised in Peter Lynch’s home town and brought up on One Up On Wall Street and fundamental analysis. There are still plenty of stocks you can apply fundamental analysis to, but if retail traders get involved throw fundamental analysis out the window.
Trade with an amount you are willing to lose
Take profits and make your position free whenever you can. For example, if you put $1,000 into something and now it is worth $2,000, take the first $1,000 off the table and you are dealing with house money.
Watch social media and see what the big accounts are doing. You probably don’t want to be on the other side of them.
Oh, and take profits. Leave runners if you want, but remember the big retail traders are not in something to buy and hold.
Back to the market, you had some bearish Fed speak and a bunch of negative news for FAANG and friends which caused some weakness. So far it is all being retraced this morning, which is what you would expect as everyone is in dip buying mode.
Nothing has changed from my perspective, you still want to buy dips in crypto, AI, Mag 7, law and order, and Argentina.
Yesterday I went back into BITO calls, bought CEPU(Argentina), and added some AAPL. Commodities are the one area I have been sort of wrong on, but I think the Fed has given up on inflation and do expect that to be a place you are going to want to be.
In the Mag 7 names keep an eye on TSLA. It had a U&R at the 10 day and is up again this morning. Could use the 10 day as a tight stop on a long or around 166 if you want to give it more rope.
A lot of smart people negative on TSLA, and they are probably right, but this is another one of those names where you can throw that stuff out the window short term.
I added to AAPL but would like to see it break above the 10 day. I do not want to see it break below $168.
If you like buying strength MSFT had a U&R at it’s 10 day, which could be used as a tight stop for a long.
We had a ton of volume into GOOX yesterday, not really seeing it though, GOOGL looks a bit extended. The $150 area is going to be important.
I continue to be short PLNT. Originally got on that name because of the weight loss drugs, this whole woke things is just a gift.
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Matthew Tuttle is the Chief Executive Officer and Chief Investment Officer of Tuttle Capital Management, LLC.
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