So many people are PILING into the market at this point. It’s FOMO-based, flat-out.
But in the short-term, that creates opportunity. And it’s not just penny stocks.
See how Jeff Zananiri trades up to 8x faster with “Turbo” Options
Table of Contents
The Big Picture
Every Friday I appear on Schwab TV for “The Big 3.”
For months, I’ve been bringing big names to the table (some I’ve shared here). They don’t really go for penny stocks there. Which is fine, because I consider myself a student of the markets, not just a penny stock day trader.
A lot of the names have gone up for months after I’ve talked about them. Now, I’m not trying to brag. I just want you to understand the target-rich environment we’re in right now.
Momentum and FOMO has been building for months. The AI trade is just one example.
You have…
- The AI companies, those actually building the models.
- The data center boom (related to AI)
- And huge demand for memory and chip stocks (also because of AI)
So you have this intersection of different companies and sectors. And I think there’s still a lot of room, a lot of potential upside. And that’s because of FOMO.
Who gets bit by FOMO most? Retail traders.
Add the PDT Rule Change to the Mix
Now, think about the change to the pattern day trader (PDT) rule coming into effect this week…
The PDT rule was keeping a lot of retail traders away from the markets. Soon, they won’t be limited to only three trades a week. So, I think all that pent-up FOMO frustration is going to heat things up even more.
My Take
I know, for some of you, it may seem overwhelming with this many plays and this much volatility. When the PDT change happens, it’s just going to increase. But I’ll tell you what…
It’s better than it was 10-12 years ago. What we see in one day would have been spread across six months back then. So, if you are feeling overwhelmed, I get it. But it’s WAY better than it was.
My take? Learn the rules, trade the right way and take advantage of this target-rich environment.
Watchlist
This is one of the stocks I brought to this week’s “The Big 3.”
Dell Technologies Inc. (NYSE: DELL) gapped up on positive earnings and AI data center sales.
The 1-year chart is exceptional for a big company:
DELL, 1-year, daily candle
I first brought DELL to “The Big 3” in March when it was a big gap up breakout. At the time, it was hitting 52-week highs. I brought it as a data center play.
Now, with the big gap up last week, I’d wait for it to calm down, to build some support. It needs to build a level to trade off of. But once that happens, I think we could have a second leg into the fall.
On My Radar
- Apparently, Putin wants to live forever and he’s bankrolling a TON of research. He’d probably save a lot of money if he had a Higgins in his life.
- Watch this spectacular Blue Origin explosion. Too bad Bezos can’t just order a new rocket on Amazon.
- SpaceX is ONLY going for a $1.8 trillion IPO valuation. Wild times. I’d let it settle before trading. Without a chart, there’s nothing to trade off of.