Lessons from the Meme Stock Frenzy: An Insider’s Perspective

Learn how to follow insiders into stocks with explosive potential (full details here)!

Let’s talk meme stocks…

Remember GameStop, AMC, and the “meme stock” frenzy from early 2021?

They effectively created the market top and caused the initial push into the bear market that followed. 

Well, we’re coming out of it, and a lot of those meme stock names are seeing moves in a way that’s not often discussed.

(Side note: I watched the first 30 minutes of “Dumb Money,” the movie based on the meme stock saga, on an airplane. 

Interestingly, I was one of the few who actually called the GameStop squeeze before it happened based on what I was seeing in the options market, and a few days later, I talked about GameStop topping out, which made me quite unpopular online.)

Meme Stocks: An Insider’s Perspective

I bring it up because one of our key strategies is following the purchases of corporate insiders.

CEOs, CFOs, directors, VPs – people who know better than anyone else what’s really going on inside the company. 

We do this by looking for significant buys – high-conviction buys – where they clearly expect the stock to go up. 

We then identify potential catalysts that could spark such a move, like an FDA approval, an earnings beat, or a potential merger.

We also see thematic plays too, like if a lot of energy executives start buying up energy stocks.

Assessing Insider Stock Opportunities

One name worth looking at is Beyond (BYON), a combination of Overstock and Bed, Bath and Beyond. 

A company director, Marcus Lemonis, started accumulating a position beginning around October 2023. 

He bought shares between $15 and $17… 

And the stock has climbed 113% since his purchases.

Here’s another name that came up recently: Blackberry (BB). 

But I’m going to show you why it’s a bad trade.

Philip Brace picked up 35,000 shares at a cost basis of $2.79 this past Valentine’s Day. 

Check out the Form 4: 

Lessons from the Meme Stock Frenzy: An Insider’s Perspective

Lessons from the Meme Stock Frenzy: An Insider’s Perspective

Now there was a piece of news associated with Blackberry that hit on February 8th. 

Here’s the press release:

Lessons from the Meme Stock Frenzy: An Insider’s Perspective

Lessons from the Meme Stock Frenzy: An Insider’s Perspective

An insider buying company stock shortly after joining the board of directors, or becoming CFO, is pretty common.

But when you see someone whos been at the company for years suddenly loading the boat, it’s usually a much stronger signal that something big is coming.

Here’s another example: Big Bear Ai (BBAI).

Company director Pamela Braden made her first open market purchase ever, picking up 50,000 shares at a cost basis of $1.92 a share. 

Lessons from the Meme Stock Frenzy: An Insider’s Perspective

Lessons from the Meme Stock Frenzy: An Insider’s Perspective

In my premium alert service, we picked up shares based on this activity and recently closed down half the stock position for an 87% return.

Our call options did even better, gaining 275%. We closed half of that position as well, so we’re still riding this trade for more upside potential.

I’ve recently put together a complete masterclass that shows my entire process for finding these types of opportunities. 

I break down how to find these Form 4s, what to look for, plus my process workflows, key performance indicators on individual stocks, scanners, screeners, and even some bonus training on value investing and trading options. 

(And, I think you’ll be pleasantly surprised when you see the price.)

Click here and I’ll explain all the details in a brief video.

Unlocking the Future: How AI and Energy Innovations Are Paving the Way for Medical Breakthroughs

The relentless advance of technology, fueled by artificial intelligence (AI) and groundbreaking energy solutions, is on the cusp of addressing one of the most daunting challenges of our era: antibiotic-resistant infections. 

The intersection of AI, energy innovations, and medical science promises a new dawn of discovery, transforming our approach to longstanding problems and offering new hope.

The Rise of Antibiotic Resistance

Antibiotic-resistant infections have emerged as a formidable adversary, claiming 1.2 million lives in America in 2019 alone. 

The overprescription of antibiotics has caused an evolution of superbugs, strains of bacteria that conventional drugs cannot defeat. 

However, hope glimmers on the horizon as AI steps into the fray, wielding the power of vast datasets to unearth a new class of antibiotics capable of combating these resistant pathogens.

AI: The Key to Unlocking New Frontiers

The potential of AI extends beyond medical advancements, promising solutions to unsolvable math problems and the development of room-temperature superconductors. 

Every domain, from industrial to medical, stands on the brink of a technological renaissance, poised to leap forward as AI unlocks previously inaccessible possibilities.

The Energy Dilemma

But this progress is not without its challenges. 

AI’s insatiable appetite for energy poses a significant hurdle, with predictions suggesting a tripling of US data center energy consumption from 2023 levels. 

The resurgence of coal-fired power plants, especially in data center hubs like Virginia, raises concerns over environmental impact and sustainability.

The Nuclear Option and Green Energy’s Limitations

As the market searches for solutions, nuclear energy emerges as a viable alternative, promising a cleaner, more sustainable path to powering AI’s future. 

But the transition to a nuclear-powered America is fraught with obstacles, requiring time to build and activate reactors. 

Meanwhile, renewable energy sources like solar and wind grapple with their inherent intermittency, unable to guarantee the constant power supply AI demands.

The Quest for Efficient Energy Storage

The key to bridging this gap lies in advancements in battery technology. 

While Lithium-Ion batteries dominate the landscape, their limitations in scalability, durability, and safety underscore the urgent need for innovation. 

Fortunately, discoveries of vast lithium reserves within the US and the development of new energy storage solutions that eschew costly and hazardous materials offer a glimpse of the future—a future where energy storage is both scalable and affordable.

A Company at the Inflection Point

We’ve identified a company poised to capitalize on the AI revolution with its cutting-edge energy storage technology. 

Trading near its cash value but boasting a high sales multiple, this “deep value” stock is on the verge of explosive growth. 

With a promising product line and the potential for significant returns, especially through the warrant market, this company represents a golden opportunity for forward-thinking investors.

The Role of Corporate Insiders

In navigating the complex landscape of energy and AI, corporate insiders offer invaluable insights.

 A recent six-figure purchase by a company director underscores the confidence and insider knowledge that can guide investment decisions.

To delve deeper into the nexus of AI, energy innovation, and their implications for the medical field and beyond, we invite you to join our free training. 

Discover how following corporate insiders can illuminate the path to groundbreaking investments and transformative technological advancements. 

Click here to watch our free training and embark on a journey to the forefront of technological innovation.

Navigating Bitcoin Spot ETFs

Access our free Trading Roadmap training right here!

 

Hey, Steve here, the lead strategist at Market Traders Daily. 

Today, we’re diving into a topic that’s capturing the attention of investors worldwide… Bitcoin Spot ETFs. 

With Bitcoin’s value soaring above $60k and showing no signs of slowing down, it’s clear we’re witnessing something extraordinary. 

This surge in value is not just about the numbers; it’s about the increased interest from retail investors, especially those previously on the sidelines of the crypto market. 

The introduction of new Bitcoin Spot ETFs is a game-changer, and here’s why.

Understanding Bitcoin Spot ETFs

Bitcoin Spot ETFs are a significant development, primarily because they allow ETF custodians to buy Bitcoin directly. 

This is a departure from the crypto ETFs exposed to the Bitcoin futures market, which, while innovative, come with their own set of challenges. 

For instance, exposure to the futures market can lead to ETF degradation over time due to the futures roll curve. 

The goal with Spot ETFs is to offer a more straightforward, potentially less volatile investment option for those looking to get into crypto.

The Role of Liquidity and Market Dynamics

When trading Bitcoin Spot ETFs, it’s crucial to look beyond the ticker chart and focus on the underlying asset. 

This approach provides a clearer picture of the market’s direction, offering insights that are not immediately apparent when analyzing the ETF in isolation. 

For example, understanding the liquidity dynamics on platforms like Bitstamp can offer strong signals about market movements, something particularly important in the decentralized nature of crypto markets.

The recent SEC approval of Bitcoin Spot ETFs marks a pivotal moment for the market, opening the doors for retail investors to gain exposure to crypto through a regulated framework. 

But the intricacies of trading these ETFs and the broader implications on the market demand a nuanced understanding of liquidity and market dynamics.

The Momentum Circle of Spot ETFs

An interesting phenomenon arises with the structure of these Spot ETFs. 

As retail investors pour into Bitcoin Spot ETFs, the ETF custodians must purchase more Bitcoin, pushing the price even higher. 

This creates a momentum circle where the rising price of Bitcoin attracts more investors, further accelerating the cycle. 

It’s a dynamic that mirrors the momentum runs seen in traditional markets, such as the NASDAQ, driven by significant players like Nvidia.

Harnessing the Trading Roadmap for Success

Understanding the intricate dance of liquidity in the market, especially with the emergence of Bitcoin Spot ETFs, requires a comprehensive approach. 

This is where our Trading Roadmap comes into play. 

We’ve developed a methodology that not only demystifies the process of trading these ETFs but also provides a strategic framework for navigating the crypto market’s volatility and liquidity challenges.

If you’re looking to deepen your understanding of these dynamics and how to leverage them for successful trading, this free training is for you. 

It covers everything from liquidity analysis to strategic trading practices, giving you the tools you need to navigate the complexities of Bitcoin Spot ETFs and the crypto market at large.

By focusing on the underlying assets and understanding the market’s liquidity dynamics, investors can position themselves to capitalize on this new frontier. 

And for those eager to dive deeper, our Trading Roadmap training can offer a pathway to success in this exciting market.

If you’re ready to explore the intricacies of Bitcoin Spot ETFs and how to trade them effectively, join us for our free Trading Roadmap training. 

Discover the power of liquidity analysis and how it can transform your trading strategy in both the stock and crypto markets. Access the Trading Roadmap training here and embark on your journey to becoming a more savvy and informed investor.

Remember, the world of Bitcoin Spot ETFs is complex, but with the right knowledge and strategies, you have the opportunity to navigate it successfully. 

See you on the other side, take care.

Calling the Bottom in Tesla

Tesla’s journey on the stock market has been nothing short of a rollercoaster. 

Compared to other NASDAQ giants, Tesla’s performance has shown unique patterns that require more than a surface-level analysis. 

In this video blog, Steven uses his Trading Roadmap to offer a comparison with other tech giants and shed light on Tesla’s unique trajectory… 

Including where it could be heading next.

Click here to learn more about Steven’s Trading Roadmap and how it can help you decipher market moves for the shot at exceptional gains.

This isn’t just about tracing trends. It’s about understanding the underlying market psychology and the strategic plays that come with it.

Key Takeaways from the Analysis:

Exclusive Access to Precision Volume Alerts Training

Steven’s expertise is just a glimpse of what we offer at Market Traders Daily. For those who want to delve deeper, we have an exclusive offer for you. Access our FREE Precision Volume Alerts training, where you’ll learn the intricacies of liquidity analysis and how it can be a game-changer in your trading decisions. Click here to unlock this valuable resource.

 

The Secret World of Biotech Stocks: Beyond Apple and Facebook

Have you ever wondered where the fastest stock movements occur? 

It’s a common belief that giants like Apple and Facebook lead the way, but there’s a different sector where dramatic changes happen more rapidly: biotechnology and pharmaceutical stocks.

The Unpredictable Nature of Biotech Stocks

Biotechnology stocks are known for their volatility, but this can work in your favor. 

When positive FDA data rolls in, these stocks can surge dramatically, sometimes by 300-500% in a single day. 

Take Viking Therapeutics, for example. In early 2023, good news sent their stock soaring from around $3 to a high of $25 a share – that’s an astonishing 733% jump!

The Risks Involved

It’s not all roses in the biotech space, though. The sector is fraught with risks. Poor FDA results can plummet a stock instantly. Companies failing to secure funding might dilute their stocks, further driving down prices. The key is to navigate these waters carefully, understanding both the potential and the pitfalls. 

Mastering the ‘Buy the Rumor, Sell the News’ Strategy

One effective strategy in biotech investing is ‘buy the rumor, sell the news.’ 

This involves buying stocks in anticipation of positive developments, not right before they’re announced. 

A great example is Macrogenics (ticker MGNX), which saw its stock rise from $4 to $16 after an earnings report, showcasing the power of anticipation.

Leveraging Insider Insights

We don’t have to be biotech experts to make smart investment choices. Instead, we can look to those who are… 

The insiders

In September 2023, a corporate director’s purchase of 15,000 shares in a company signaled a strong buy to us. 

Following this insider move led us to a whopping 426% return on the stock, and a 712% gain on the simple option play we traded.

The Power of Insider Information

Recently, we’ve identified a promising trade where multiple corporate insiders are buying shares. This company, working on treatments for major depressive disorder and weight loss, has seen significant insider investment, signaling a strong buy to us.

Setting Realistic Targets

With biotech stocks, setting realistic targets is key. We aim for a double on our initial stock investment, with the potential for a 200% return on capital if FDA results are favorable. Options trades could yield even higher returns.

Your Gateway to Profitable Biotech Investing

Biotech investing offers unique opportunities for significant gains. 

To learn more about navigating this volatile yet potentially lucrative market, check out our free, on-demand training.

Packed with case studies from various sectors, it’s a treasure trove of insider knowledge, ready to guide you through bull and bear markets alike.

Click here to access the free training and unlock the potential of biotech investing.

A Debt-Fueled Financial Black Hole Is Coming… Are You Ready?

In February 2009, the markets were still reeling from the credit crisis. In response to this, President Obama signed into law the “American Recovery and Reinvestment Act.”

This was an absolute firehose of Federal money. The entire package was $787 billion, which was a massive number back then.

Part of that spending bill was a one time, $250 payment to Social Security recipients, which made headlines as it was a $14 billion direct stimulus.

Back then we thought these were eye-popping numbers, but now it’s just the normal math of Federal spending.

In 2023, there was a massive cost of living adjustment for retirees, and they were granted an 8.7% increase in social security payouts.

That’s five times what we saw during the “firehose” spending from 2009.

And now, with rates above 5% and the markets pricing in rate cuts throughout the rest of the year, the Fed is between a rock and hard place once again.

They’ve been waiting for inflation to cool off before they start cutting rates, but they just can’t seem to get it under control. 

What gives?

America’s Two Economies

The U.S. operates with two separate economies.

The first is the “financial” economy. These are areas the Fed can directly control. Real estate, regional banks, credit markets– all things that are pegged to the rate window that’s set by the Federal Reserve.

The deflation risks are all sealed up into this economy. We saw the Regional Bank crisis in March of last year that was the direct result of the rate hikes throughout 2022.

And we’re starting to see softness here. Large corporations are reducing their employee counts, and they are taking a good hard look at what they can afford to spend now that the cost of capital is through the roof.

If this economy was the only thing the Fed has to worry about, then it’s in a good spot.

But then you have a second economy. The Real Economy.

The Real economy has inflation. It’s not going away.

Some of it is structural. When Social Security recipients continue to get an increase in their monthly paychecks, it bleeds over into asset prices.

You also have supply chain issues in the real economy that kicked off in 2020 and have still been rolling through, causing sustained price increases.

There’s also the political side of things. When you have 300,000 illegals coming across the border, that will have a direct effect on the cost of housing and goods inside the United States.

None of this is currently touched by Fed policy. And the problem for the Fed is that by the time their policy bleeds over into the Real economy, it will cause some nasty problems downstream.

They’re trying their best to “thread the needle” between both economies. Monetary policy can only affect the “financial” economy, causing job losses and a reduction in corporate spending and investment.

An Inevitable Financial “Black Hole” 

This comes down to an inescapable conclusion: the Fed must accept a higher level of inflation in the Real economy, because the alternative would be a “hard landing” recession that would explode the deficit and put the United States on the back foot with both its monetary and fiscal policy.

There’s no escaping this– the pieces were put in play years ago and we are witnessing the effects without the ability to stop it.

The US is in a debt-fueled Financial Black Hole. And the only way out is through.

This is not a call for a market crash. It’s simply looking at things the way they are and knowing that we will have to “inflate” our way out of this mess. That means stocks can continue to rip higher, but it may be concentrated only in a handful of names while rotation happens under the surface.

It also means that market volatility is going to stick around for a while, and if you’re an investor, you can’t afford to “buy and hold.” You need to be tactical.

Here’s the thing– while we are aware that all of this is going on, we don’t actually make bets on this. We know what the narrative is, and our job is to watch institutional money flow to see when they are making big moves, both buying and selling.

And we have a proven system for tracking those moves. I’ve put together a free training webinar that takes you through it step by step – you can watch it right now on this page here.

Bitcoin Bloodbath: Mass Liquidations in the Crypto Market, and How We Gave You an Early Warning

After much hand wringing and speculation, the Federal Government finally gave the green light for bitcoin ETFs recently.

Many “rookie” market participants thought that this would lead to a massive rally. Before the news officially hit, bitcoin would run just on rumors.

Once the ETFs were listed and tradeable, bitcoin took a huge hit.

bitcoin bloodbath

bitcoin bloodbath

It was a classic “buy the rumor, sell the news” kind of event.

Now, everyone is scratching their head to figure out why.

FTX Liquidation Doesn’t Help

The cryptocurrency world witnessed a remarkable event with the liquidation of FTX’s holdings in the Grayscale Bitcoin Trust (GBTC), an occurrence that sent ripples across the market. 

Investors sold over $2 billion worth of GBTC, and a significant portion of this exodus was due to FTX’s bankruptcy estate offloading 22 million shares. This massive move coincides with the launch of several spot bitcoin ETFs, including major players like BlackRock and Fidelity.

That didn’t help things, but you didn’t need to know that in advance. In fact, we had these levels called out well ahead of time.

A Flashback to Our Bearish Bet

When I shared the bitcoin news with you last, I called out a “bagholder zone” that was identified with our Trading Roadmap.

bitcoin bloodbath

bitcoin bloodbath

Here’s what I wrote:

If you create a Trading Roadmap using the topping pattern from 2021-2022, you can tell what prices had the most buyers.

And as those buyers go from massive losses back to breakeven, they may want to sell some of their position.

That’s how you can get a hard pullback.

This is about as close to a crystal ball as you can get. You don’t have to follow the news or even know what a “bitcoin” is – as long as you know where the institutional footprints are, you have a method of generating solid trading and investing returns.

Your VIP Pass to Market Clarity

We’re rolling out the red carpet for a free training on our Trading Roadmap. 

Want in? 

Sign Up Here to get the training and finally create an edge in your trading and investing.

Political Profits: How One Regulatory Change Is Creating a Goldmine for Stock Investors

The election season is starting to heat up, and that means only one thing– time to buy some votes.

Political Profits: How One Regulatory Change Is Creating a Goldmine for Stock Investors

Political Profits: How One Regulatory Change Is Creating a Goldmine for Stock Investors

This past week it was confirmed that both the Food and Drug Administration (FDA) and Health and Human Services (HHS) want to reschedule cannabis to “Schedule 3.”

It needs to be confirmed by the DEA, but it appears that before the election hits in November, it’s going to be a lot easier to score some weed.

This is a clear political play. Biden’s team has had this in their back pocket for 4 years and are now looking to play it to try and shore up a voter base into November.

This catalyst is still very early, and it’s one where it will take a while before all the upside is squeezed out of the sector.

Cannabis Stocks Lead to Tangled Terrain for Investors

The cannabis sector has a ton of potential, but it’s still riddled with risks.

Illegal operations are still squeezing out market share. The cartels have set up illegal cannabis grows across the country, stealing water, and threatening farmers that complain.

Political Profits: How One Regulatory Change Is Creating a Goldmine for Stock Investors

Political Profits: How One Regulatory Change Is Creating a Goldmine for Stock Investors

There are still substantial banking barriers in the cannabis space. Due to dealing with a schedule 1 drug, these companies do not have access to traditional banking accounts and have to rely on cash payments.

This also means institutional capital can’t buy these companies due to that financial risk– that’s why these stocks may not move hard until the rescheduling is finalized.

One more issue: legal competition is fierce. It’s called “weed” for a reason, because it grows fast and doesn’t require a ton of maintenance. 

Many cannabis companies only have an edge due to regulations, and once the shakeup happens then we will find out who are the true winners.

The Best Way for Investors to Play Cannabis Stocks

With these kinds of risks, the sector is a tough play… but there is an overlooked corner of the cannabis ecosystem that captures these upsides without any of the downside risks.

The smartest bet isn’t on the product, but on the ecosystem.

It’s like investing in Caterpillar (CAT) if you think industry is going to boom.

Or buying Cloudflare (NET) if the tech industry is about to spend cash.

In the cannabis space, there are companies that provide services to the growers. These are the “picks and shovels” stocks that will sell to everyone– that means they can ride the sector tailwinds early.

The Insider’s Edge: A Case Study From IIPR

There are a few times when the cannabis sector was a “screaming buy.” March 2020 was one of those times– and corporate insiders knew it.

Innovative Industrial Properties (IIPR) is a cannabis ecosystem bet. They sell “grow space” to the cannabis companies.

Political Profits: How One Regulatory Change Is Creating a Goldmine for Stock Investors

Political Profits: How One Regulatory Change Is Creating a Goldmine for Stock Investors

In March 2020, two corporate insiders purchased the stock, and their timely investments led to a staggering 463% rally.

Those are the players you want to follow.

The Million Dollar Bets In This Company

Using our corporate insider search, we’ve found another company in the cannabis space.

Political Profits: How One Regulatory Change Is Creating a Goldmine for Stock Investors

Political Profits: How One Regulatory Change Is Creating a Goldmine for Stock Investors

There are two insiders who have made their first open market purchases of the stock ever.

And both purchases were just shy of one million dollars.

This setup ticks off a few things we look for

If this stock sees a simple rally back up to the top of its trading range, then you could be sitting on a fast 34% gain.

Political Profits: How One Regulatory Change Is Creating a Goldmine for Stock Investors

Political Profits: How One Regulatory Change Is Creating a Goldmine for Stock Investors

If it hits my first target, you’re targeting 145% in potential upside.

Unlock Insider Secrets: Free Training Inside

If you’re looking for the very best investments this year, you can’t go wrong following the most informed people in the market– the insiders.

They’ve got the most knowledge about how their company is doing, and if they think it’s worth much more than what it is currently, they buy.

We’ve put together a free training that shows you how to read insider data, and the investment criteria you need to follow.

Dive Deeper into Insider Strategies: Reserve Your Free Training Seat Now