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:

• In-Depth Chart Analysis: A detailed breakdown of Tesla’s daily charts, highlighting key trading ranges and pivotal moments.
• Strategic Trading Tips: Insights into potential trading strategies and option call recommendations based on current market analysis.
• Liquidity Analysis Techniques: A look into how volume-by-price analysis can predict market movements and offer strategic advantages.

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.

 

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.

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.

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.

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.

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.

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

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.

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.

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.

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

• These are conviction buys, with investors showing size
• These are first time buys, meaning the investors have never purchased before
• This is a cluster buy, with multiple insiders purchasing at the same time

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.

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

In late 2023, I had the opportunity to take a tour around NASA. It was for a private equity deal, and the company shares a hangar with some pretty interesting folks…

They had just rolled this helicopter out of the hangar, and some men started loading in. They were in full blown “operator mode” – with helmets, rifles, and ammunition strapped to their chests.

They told us they were just counting the alligators today, but they served as threat detection for all of Cape Canaveral.

When a manned launch happens, the military has active fighter jets in the air, and there are patrols on the ground to watch for any risks coming out of the swamp.

It’s part of the “launch status check” for NASA. You must have multiple people say that the launch is good to go – and if any of them say “no” then the launch is scrubbed.

 

Find Stocks That Are Ready To Rocket

Coming into 2024, there are dozens of stocks that are sitting on their launchpad, waiting for the “go” signal. 

And if institutional investors give the green light, it sets the stage for triple digit gains.

Let’s look at a recent example with Coinbase (COIN):

In November 2023, Coinbase was still sputtering after a strong push earlier that summer. 

For rookie investors, they bought the spike and are bailing due to their impatience.

Yet into that pullback, we can see why prices are holding…

The stock was retesting the point of control (POC). This is the “launch pad” that starts off major bull market runs.

What Happens During a Stock Launchpad Countdown

The “Point of Control” is a key area in our Trading Roadmap that shows where the most shares have been traded.

These are the institutional footprints where you can see the exact motivations of the participants that truly move the market.

If you’re ready to go down the rabbit hole on how to trade the Point of Control, join this special presentation here. 

Many times, a stock will see a big move higher that fades all the way back to the point of control. 

That’s when institutions have their last chance to buy shares if they think that the stock will go higher.

If they start buying, then price will respond against that point of control. That’s the signal to get into the stock.

Here’s what it looks like conceptually:

How it Played Out In COIN

COIN was seeing signs of institutional buyers grabbing the last shares before a move higher. Any “obvious” breakdown was met with aggressive buyers, sweeping it up past support.

When you see those kinds of games, it’s usually funds that are playing tricks on uninformed traders for them to stop out and hand over their shares at a good price.

When the stock launched, it went straight up without a chance to get a good pullback. 

At Precision Volume Alerts, we alerted our clients to this exact opportunity, and our call option position rose 503%.

That’s the power of knowing where the institutions are going to trade… and understanding the Trading Roadmap can help you harness that power.

For a full in-depth training, click here (it’s 100% free).

Last year was a bloodbath for the tech industry. If you weren’t able to get to profitability, you needed to have funding lined up or else your company would “hit the wall” of the interest rate curve.

There’s some companies that even have their debt at a floating rate, so when the Fed went on their hiking spree, their share prices took a hard hit.

The drastic change in Fed policy caused these job losses. Not the “free market.” It was an intended consequence of the Federal Reserve. Because when layoffs happen, that helps to reduce inflation since it makes people poor.

Of course that isn’t what they’re going for. But that’s how the system operates– sometimes the well intention of bureaucrats leads to disaster in the private sector.

Which is why I’m ringing the warning bell with this most recent round of layoffs.

Because tucked away in the IRS website is something called “Section 174.”

And it could lead to an absolute bloodbath in the technology sector.

Allow me to explain…

 

IRS Section 174: The New Nightmare for Tech Stocks

When you own a business and buy a piece of machinery or spend cash on R&D, there are a few things that your accountants can do.

You can deduct these expenses as a “one-off,” or you can choose to amortize the costs of those R&D investments over time.

This is where it gets ugly.

When you hire software developers to build things, you used to be able to deduct their entire salary up front.

But some new guidance came out from the IRS, saying that software development falls under a specific rule, and you have to amortize it over a 5 year window.

Here’s a quick example.

If you have a software firm that makes $1mm, and you had to spend $1mm on your programmers, then you have $0 profit and pay $0 in tax.

But now, you can only deduct $100,000 of those costs the first year. That means your “profit” is now $900,000.

And you now owe the IRS $189,000 in corporate tax.

This is causing a massive tax bill to hit the software sector, and companies are responding to it by laying off a good chunk of their workforce.

There’s going to be many tough discussions with the CFO about what needs to be done.

And if this starts to accelerate, then the sector that offers the most value-creation could be gutted, leading to a recession.

 

Before we can go and blame Biden for this… the rule change was pushed through by Mitch McConnel and Paul Ryan back in 2017.

It was only recently that the IRS decided to change their guidance to cause injury to the tech sector.

 

Why start now? Because the Federal Government believes that AI companies present an existential risk to the current ruling class.

Firms like OpenAI spend hundreds of millions on software development, which is now at a massive risk due to this regulatory change.

The IRS is weaponizing the tax code to slow down AI development, and they are willing to take out the software sector as a whole.

 

For some companies, this can end up being a good thing. Tech firms tend to overhire and are currently in the “getting lean” stage due to funding windows closing.

If you can fire enough employees, then your margins can improve to the point that you can start buying back stock, or getting enough runway where interest rate risk is no longer hitting so hard.

Those are the firms I want to pay attention to–and it’s not going to take a ton of time to research these stocks.

If I see a key corporate insider buying shares after a round of layoffs… well, it makes him look like a jerk.

Because all these employees are losing their livelihoods, and this guy just waltzes into the open market and drops $50,000 in a single trade.

The optics are terrible

That’s why if I see it happen, it means the insider is willing to risk getting torn apart by the press in exchange for upside in the stock.

And given how the press works these days, there’s gotta be a ton of reward in the name… and I’ll be willing to follow along to profit in the name.

Let me show you an example.

In October of 2023, 3D Systems announced a “Restructuring” plan. They mention “operational efficiencies” but what that really means is “firing people.” Source

One month later, two insiders put down some serious cash.

The CEO bough $192,000 of the stock on the open market.

And a company director added nearly $500,000 to his position.

These insiders are only buying because they think the stock has one way to go: up.

The restructuring frees up cash flow to get them to profitability, and once they get up off the mat, they can focus on growth as 3D printing is a sector that will see drastic expansion as more manufacturing heads back to the United States.

That is the kind of opportunity you want to look for. I’ve put together a free training that shows you exactly how to do that…

Click right here for the video.

This past week was wild for the crypto markets.

On Tuesday, the SEC’s Twitter feed dropped the news everyone was hoping for: a spot Bitcoin ETF.

If you’re not in the space, you may not think this is a big deal.

But it allows more institutional capital to flow into the system. By introducing a “spot” ETF, the fund custodians can go out and buy Bitcoin instead of relying on the futures market.

So we’re good to go, right?

Not so fast!

Gary Gensler, the head of the SEC, came out and said their Twitter account was hacked – no green light for these ETFs.

Here’s how the Bitcoin markets responded:

The Regulatory Roller Coaster

The United States Government is not the biggest fan of crypto markets. It allows capital to “offshore,” which gives the owner the ability to bypass the SWIFT banking system that has done well to help the US Empire.

But you can’t hold back the tide forever.

The “real” approval finally came Thursday…

But be warned – that doesn’t mean the market will go parabolic on the news.

A Warning From the Past

Back in 2017, everyone and their mother was going crazy over crypto. It was in a bubble, showing no signs of slowing down.

The Chicago Mercantile Exchange (CME) launched Bitcoin futures, and many market players thought this would bring in a bunch of sidelined money.

The opposite happened. Having the ability to quickly hedge off risk using futures caused a liquidity cascade, and marked the exact top of Bitcoin for 4 years.

This Time Is Different… But Be Careful

Now, Bitcoin’s on the move again, but it’s not shooting up like a rocket. It’s been as normal of a rally as you can get with Bitcoin.

The big risk I see is not the ETF approval, but that the market is entering a “Bagholder Zone.”

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.

 

Profitably Navigate the Crypto

Market With Our Roadmap

Even with all the newsflow and regulatory sabotage, I’m bullish on the space.

And just like with the stock market, our Trading Roadmap is ace at spotting those money-making moments in Bitcoin.

We’ve got an in-depth training that shows you how to use this Trading Roadmap.

Click here and grab your spot in our free training webinar. Let’s ride these crypto waves together!