Sluggish $SPY, but Frisky $AI – May 15, 2023
This is Dan Fitzpatrick, StockMarketMentor.com, and I am going to talk about a stock ( NASDAQ: HUT ) that is $1.87. So you can trade this like a millionaire, especially if you are doing options. That’s all the more reason to like this stock.
This is my trade on this, I don’t own this stock now but I probably will tomorrow, if the stock runs above, say, 1.90. You know, you deal in pennies in a stock like this. If the stock runs from here, up to $2.00, for example, that’s about a 7 percent return, for a 15 percent move. So it doesn’t take many pennies to make a big difference in your account, particularly since commissions are essentially free.
First of all, my thesis here. If the US Government defaults, that is going to be a big deal. It will be a big deal and will probably bring a selloff in the market, I think that is pretty much guaranteed. In that unhappy event, they will figure something out real soon, if things don’t last too long in that way. And also, all the Treasury holders are going to get paid.
So anybody who is filling you with “bullspit” to the contrary, Oh, it’s going to be horrible, they are full of crap, or they are full of ignorance, or probably both. This will be a big deal, don’t get me wrong, I am not minimizing it. But what I’m saying is, it is not Armageddon, they will fix it real quick. Okay, fine.
So, what’s the trade here? I think the trade would be crypto because it is like cyber gold. Gold, it’s doing really well, it’s up at levels that it hasn’t been at in several years. I don’t pay attention to it because I just have a bunch of it in my safe and I never have to put it in a humidifier or anything like that, it just sits there, so it doesn’t really matter to me. But Gold ( NYSEARCA: GLD ) is up substantially, shall we say. It is up really, really nice.
With crypto ( NASDAQ: HUT ), I think this could be the go-to play, if there is a big sell-off that way. And it will be brief, by the way. In my mind, the deeper the sell-off goes, the greater the buying opportunity it is. We are very close to getting to where we are going to be digging ourselves out of this.
So I would suggest looking at this, it’s up 7.5 percent tomorrow. Set your alert for $1.90. If the stock runs above $1.90, I think this is a buy. It is pretty volatile, the 50-day moving average is over 8 percent below where it is right now. If you have your stop higher than that your chances of getting stopped out are actually pretty good. So I think the way you trade it is, you take a smaller position so you can give this thing a little more room to wiggle.Free Chart