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It's fashionable in certain circles to talk about having a Canadian escape plan if shit gets too weird here in the United States.
I'm not one of those. Though I love Canada, having grown up across the border in Buffalo, NY.
There were many times in my younger days, while spending a day across the border, where I'd find myself short on cash and I'd have to hit an ATM to get some loonies! And most often, those ATMs were run by CIBC.
So maybe I should attempt to earn back some of those ATM fees (plus interest!).
The stock market likely has a couple of aftershocks left in it. But if the worst is over, I have to believe this is a great opportunity to buy the dip in some names that will be beneficiaries of the AI boom.
And there are few bigger and well-positioned names than Microsoft.
This market environment still demands that we define our risks and we're going to leverage elevated volatility in a way you might not expect to express our bet.
VIX is near its highest level of the year and this is being reflected in options premiums nearly across the board.
It's also earnings season, so we want to be careful not to get caught in any potential earnings-driven landmines.
With this in mind, I've got a big cap name that has already reported earnings, is trading in a range, and is still exhibiting elevated options premiums -- the perfect recipe for a delta neutral options trade.
As can be seen in the chart below, $RSG has certainly been winning over the long run. And with this week's earning report sending the down 5%, it feels like a great opportunity to get positioned on the dip.
The All Star Charts analyst team continues to believe that the industrial sector will be one of the leading areas to lift the market higher as sector rotation works its magic to keep this bull market going.
And the chart of Caterpillar $CAT looks like a potential failed top in the making:
If we're right, $CAT could quickly recapture all-time highs north of $382 per share and then the sky's the limit from there.
Today's trade has all the ingredients for a monster breakout. This of course is no guarantee of a win, but if we're right, the payoff will be incredibly worth the risk.
It's a bull market. No question. But that doesn't change the fact that I'd still like to add some downside diversification to my portfolio in the weakest names the stock market has to offer, just in case.
Today's short trade candidate appears to be hanging on the precipice of a potentially swift and brutal fall. This is as good an opportunity as I can see to help protect my portfolio in the event we see a market pullback.
If your house is anything like mine, you likely have an Amazon truck delivering packages to your doorstep at least once per week. In my neighborhood, the Amazon delivery truck does twice daily rounds. We're on a first-name basis. (His name is Henry).
Those packages have price tags attached to them. You'll find them in your credit card statements. It is likely not an insignificant line item in your monthly budget.
Today, the stock is making a move to fresh all-time highs, breaking out of a high three-month consolidation.
In fact, it's not even called General Electric anymore. The company is now called "GE Aerospace."
I bring this up because the analysts had a debate today on whether or not $GE stock bumping up against levels not seen since the Great Financial Crisis even matter. Is it even the same company today as it was in 2008? The unequivocal answer is no -- it is not the same company.
Regardless, the only thing that really matters to us is the price action and its hard to ignore the run $GE has been on over the past eight months.
