Editor’s Note: As Chief Investment Strategist of Total Wealth, Shah believes in making his track record of recommendations easily accessible to all readers within seconds – and that’s why he’s compiled an Archives page.
We just saw the market have its best week in two years.
The Nasdaq Composite closed 10.4% higher on Friday than its Monday open as dealers, anticipating the quadruple witching day, unwound their hedges, covered their shorts, bought up futures, and brought the whole market up as other investors piled on.
Now, as I’m writing this on Monday afternoon, the markets are already selling down. The Nasdaq Composite and representative ETF QQQ have slipped and may go even lower.
January of 2021 ushered in a new era for the markets when the actions of a few internet-savvy traders set off an unprecedented trend in retail trading.
Where once GameStop Corp. (GME) could never break above $20 per share, its stock price was driven through the roof and beyond by Redditors preying on what hedge funds assumed was a safe and easy profit-play. For months, retail made up over 20% of the market’s total volume of trades, and they had institutional traders on the run.
A lot has changed since then – the Russia-Ukraine War, the fed funds rate hike, rising fears of stagflation – but one thing remains the same: GameStop is struggling.
The company completely whiffed on earnings on Friday, announcing a loss of $1.86 per share.
But while other investors bail on the stock or buy up shares expecting a rally, I have a better strategy – one that gives you a shot at turning GameStop’s earnings loss into your own 100% gain.
This week was a historic one for stock market investors. The fed funds rate increased for the first time since 2019 while the crisis in Ukraine continued to escalate with no end in sight.
And you need to know, now more than ever, how to play today’s volatile market for profits and keep your portfolio in the green.
That’s where Shah Gilani comes in – the ex-Wall Street insider once declared the “man who calls it all” by Stewart Varney of Varney & Co.
As regulators, hedge fund millionaires, and media barons of Wall Street plan to use your trades and investments to satisfy their own greed, Shah reveals how to outmaneuver them.
He knows exactly how this game is played, publishing reports, guides, and videos to help his readers navigate the markets, separating the financial media’s fluff from fact.
Now, Shah wants to hear from you so he can help you make the most out of this current climate.
On March 25, Shah will release his next Buy, Sell, or Hold, a video in which he dissects popular stocks and tells you how to play them – and he wants to feature your favorites.
This week, the song remains the same.
The stock market remains sloppy and weak, with each attempt at a rally being met with selling in response to worsening news out of Ukraine. That situation appears to have little to no chance of improving any time soon. In addition to the real human suffering in Eastern Europe, the disruptions to the supply chain for many critical commodities are adding to inflationary pressures around the world.
The weakness in equity markets is also reflected in SPAC trading, “blank check” companies, before and after they announce merger partners. A simple Google search yields results detailing a recent “bloodbath” and “de-SPAC carnage,” with the fate of the surviving few uncertain, and how other investors are leaving the SPAC and De-SPAC market in droves; and blah, blah, blah
But I’m not one to follow the crowd. Everyone on the run from the SPACs market these days is leaving behind ripening profit opportunities – one of which I’ll outline for you today.
Right now, consumer demand strong, the economy growing, and employment is on the rise… But that won’t stave off stagflation very much longer. A high inflation environment and a slowing (or stagnant) economy are right around the corner. Add that …
Mar 14, 2022
Rivian Automotive Inc. (RIVN), an electric truck manufacturer, reported quarterly results on Friday that disappointed investors. The stock dropped more than 7.33% in early-Friday trading.
For the quarter, the company reported revenue of $54 million which was considerably lower than the estimates of $64 million.
On the bottom line, adjusted earnings were a $2.43 loss per share, also lower than estimates of a $2.05 loss per share.
Beyond the financials, what really impacted the stock was Rivian’s new production forecast. The company once claimed it could produce 50,000 vehicles per year. Now, due to persistent supply chain issues, its capacity has been cut to 25,000. Rivian just can’t get key components it needs to finish building its vehicles.
Even with the pandemic easing and the global supply chain crunch slowly mending, I think it’s going to be quite some time before RIVN is at full production capacity.
In the meantime, the company is burning through cash, has large operating losses, and rising interest rates will hurt the stock’s forward valuation.
I wouldn’t be surprised if we don’t see a short-term rally as bargain hunters move in to catch a bounce, but longer term, I think shares are heading lower, at least until they have a plan for sustainable production increases.
If shares of RIVN trade up to $39.75 by March 18, let’s buy the RIVN May 20, 2022 $35/$30 Put Spread for $2.25 or less. Plan on exiting the RIVN May 20, 2022 $35/$30 Put Spread for a 100% profit or if shares of RIVN close above $49.50.
But that’s not all I’m watching this week.
Commodities are hot right now, and for good reason. Oil, corn, wheat… they’re all through the roof – but they may not stay that way, especially where agricultural commodities are concerned. For all kinds of reasons, agricultural commodities don’t always …
Mar 10, 2022
Oil, natural gas, and energy stocks are all soaring. Just take a look at how US Oil Fund (USO), Exxon Mobile (XOM), and Tuesday’s recommendation Cactus Inc (WHD) have fared in the last month.
If you’re not in any of these high-fliers, it’s not too late. They could go a lot higher.
And everyone knows what goes up must come down, and energy bets are no exception.
So, in today’s Total Wealth, I’m giving youthe smart way to get aboard what might be a momentum ride higher for already rocketing energy plays and, at the same time, set yourself up to profit if they crash back to earth.
Mar 08, 2022
It’s not hard to figure out what’s hot in the markets right now after yesterday. We experienced a bear and bull market in the West Texas Intermediate (WTI), a key benchmark for the crude oil industry, all in a single day.
How do you play that? Well, I’ve got an answer for you.
“Where we are is, I would say, close to falling into more than [just] a correction.” – Shah Gilani
This morning, Shah addressed the Total Wealth readership to give his stance on the war, the markets, where we are going next, and how to prepare for a future full of possibilities.
We recognize that not everyone could make it, so we chose to make the transcript and recording available to all Total Wealth Research subscribers.
Mar 07, 2022
The Russia-Ukraine war has continued to escalate on all sides. As Russian forces continued bombing Ukrainian cities, Western Europe and the US have tightened all sanctions, for better or for worse. This conflict has affected millions, through physical and economic …
On Tuesday, CEO of JPMorgan Chase Jamie Dimon warned the world that cutting Russia out of the SWIFT system would yield “unintended consequences.”
That’s a monumental understatement.
In short, SWIFT is a system banks use to securely and quickly communicate transfer instructions across international borders. Cutting off an entire nation and its people from this system will have steep consequences across the globe.
We could be looking at the potential demise of the US dollar as the world’s reserve currency, another likely Lehman moment, and the acceleration of China’s progress from third-world nation to global power.
Mar 01, 2022
Here in the US, when we hear “breadbasket” we usually think of the Midwest. Ohio, Kansas, Illinois… When Europeans hear the phrase, they think of Ukraine – and for good reason. The country distributes 12% of global wheat exports, 16% …
Feb 28, 2022
As I mentioned during last week’s State of the Markets (which you can watch here, if you’d like to catch up), things are looking grim but don’t sell yet.
There’s no reason to beat around the bush this week.
I’ve cancelled our regular Buy, Sell, or Hold this week to address what is on everyone’s’ minds this week: Russia’s invasion of Ukraine, the dramatic selloff that followed, and what can be done about it.
You can access this Emergency State of the Markets by clicking the video below.