A Selling Crisis
In what might be called the most dramatic week for Wall Street in 2021 – many are wondering how to best handle the market’s current events.
We’ve seen a strong wave of volatility shaking up the market lately. And much of this can be blamed on the rumors of massive block trades hitting the market.
2021 has been quite a year already for Wall Street – and most of it has been driven by the questions surrounding the identity of an unnamed trader who has sent shares of Viacom CBS Inc, Discovery Inc, and a few other names skyrocketing.
But the identity of this trader might have been discovered and many are wondering if former Tiger Asia manager Bill Hwang is one behind the madness.
Where’s the money?
Late last week, we saw Morgan Stanley, Goldman Sachs Group Inc., and Deutsche Banks AG unload large blocks of shares in the names we’ve seen skyrocketing as part of the liquidation of positions at Mr. Hwang’s Archegos Capital Management.
Many claimed that the sales added up to nearly $30 billion, and this large number fueled the 27% plunge Viacom saw on Friday. This type of decline is unusual to say the least – especially when we’re not seeing any company-specific news. And Viacom wasn’t the only company to feel the brunt of this selling action.
We saw billions of market value in other companies being wiped out as the selling pressure continues.
And if there’s one thing I know for sure – it’s where there’s smoke, there’s fire. And here’s how you can profit off what could be a slow burn.
How do I get some?
Truth be told, I believe we could see even more names and firms liquidated. And if they’re anything like Viacom this could be detrimental for the market. For instance, VIAC has now dropped from $101 to $45. This is an unprecedented drop – and I think we’re going to see more like it to come.
So, needless to say – the volatility we’re seeing isn’t going anywhere soon.
But this is why I always buy options – because volatility is an options traders best friend. So, while many are scrambling to liquidate their portfolios and trying to do some damage control – I am going to enjoy the next few weeks to come.
And here’s how you can too…
The SPY is the ultimate opportunity for an options trader right now as this current selling spree is taking the whole market down with it – and I think this is a trend that will continue for some time. So, look to buy some contracts in SPY and prepare to reap the profits while others struggle to not lose it all.
In the Spotlight: The Comeback of 2021 – The Travel Industry?
After a year of no vacations and stay at home orders, American’s are desperate for a getaway. And these two companies are feeling the travel industry surge that we’re currently seeing.
It looks like most are opting for easy to use rental companies – specifically Airbnb and VRBO which is owned by online travel giant Expedia (EXPE). And the companies stocks are feeling this uptick in business as shares of Airbnb are up more than 20% and EXPE has exploded over 30%.
“We’ve had a phenomenal recovery,” said Vrbo president Jeff Hurst “We could be looking at a real boom period for leisure travel.”
And this boom in vacation isn’t just impacting a few stocks – no, we’re seeing a resurgence across the entire sectors. Hotels.com, Travelocity, Orbitz, and Hotwire have seen an uptick. And Airline and hotel stock have risen as well including United (UAL) and Southwest (LUV) – which are up over 30%. Hilton (HLT) and Marriott (MAR) have both climbed around 10%.
Needless to say, we’re seeing consumers ready to take vacations once again – and this surge could deliver some lucrative profit opportunities. So, I’ll be sure to keep you updated as travel continues to escalate.
But that’s just the tip of the iceberg…
The travel industry is far from the only one in which more and more profit opportunities are showing up…
While many people have had their eyes on airline, hotel, and rental stocks that seemed ready to take off, the world’s slow return to normal is impacting industries across the board.
In fact, late last week, my readers had the chance to score a quick 88.89% return in just one day, courtesy of a manufacturing company.
Regardless of what the market looks like, you can bet that my custom S.C.A.N. algorithm will continue to find plays like these in its crosshairs. Click right here to see what else is in store.