Weekly Article - Ep 25
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This is the weekly article and Pod/Video Show 25. If you’re new here welcome, make sure to subscribe on YouTube and/or Spotify – you can get free daily market updates on LongVolReport.com.
Three main topics for today’s show – as always, a life update then:
- Articles of Interest from This Week
- Rotation Positive for AST Portfolio Trades
- Broad Market Overview
- Earnings and Charts of Interest
- Q&A for The Week
Quote of The Week
Favorite Articles This Week
Now on Spotify
Rotation - AST Portfolio Trades
There’s not much else that makes me happy than to see mag-7 names rotate off the highs and to see other names see money flows. Last week I talked about market inflection and a few weeks ago I talked about the market needed to check-back The flow the last two weeks has been incredible and the AST Swing Portfolio has really taken off with that flow.
This should continue into the back half of the year esp. with the Presidential election + interest rate cuts coming. This is as good as time as ever to be focused.
- Readers use the equity and or DITM calls/puts as structure so that shows both above.
- 5 for 6 so far in July. Our mandate is to send 2-5 of these ideas per month: quality not quantity is the mandate!
You can watch a short video on the AST Alerts here to learn more.
Metals really took off the past few weeks but it was really the CPI print a few weeks back that showed flows coming in. $NEM was a great position and so was Wheaton Precious Metals ($WPM).
Metals really took off the past few weeks but it was really the CPI print a few weeks back that showed flows coming in. $NEM was a great position and so was Wheaton Precious Metals ($WPM).
Money flow into home builders has been non-stop. We were ahead of that trade and it’s been profitable.
We were also out of tech and the major names as of the start of July – I mentioned quite a few times that the highs were of no interest. This has been ideal as I know many clients we were onboarding for the firm were feeling that they missed out on the broad market rally.
Broad Market Analysis.
Market is risk-off so far to start here this Summer and the more the rubber-band was stretched the faster the snap-back but this was needed. Earnings are supportive and the Fed is set to cut in September so this is a chance, in my view, to reallocate to those main market names (if that’s your thing).
- Flows coming back into small caps – finally. Worth some digging in there and I started a bit on the Uber rides to/from the city this week before getting car sick – every time I’m in this place it happens.
- Important to watch again for those in this sector. Carvana, in particular, the case is bullish for many on that still but it’s only setting up another “big short” the higher it goes. (Let’s run it back!)
- Following/tracking $RACE stock the last 3 weeks in the Report – may look to short that soon.
EARNINGS & CHARTS OF INTEREST
No report this week (we take off 4 weeks a year) and given I’m running around with meetings in NYC and trying to unplug a bit we’re going to mix it up this week.
- Let’s discuss earnings of interest
- Charts/sectors of interest to me that we’ve been tracking in the report
- CELH has been tracked – looking for $40-$44 than a trigger to get long.
- We’ve been bearish this issue 25 (June 23) and now we’re still well off the highs. $110-$105 area is an interest spot for me to watch.
- Other semis the same – needed a check back to set up the reset.
- Again market fundamentals are strong and environment is right so a lot of this is a positive.
Final Word.
- Report out next weekend + update for subscribers with a new moderator/trader joining the team to help carry the load.
- AST Alerts still active so if you join now don’t worry
- Firm is open. Non-accredited $250K, accredited $1M w/ $500,000 initial to see if you qualify click here.
- Q&A for this week
Opinion, not advice. Not a solicitation.
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About the Author
Daniel Bustamante is the founder, managing partner, and CIO of Bustamante Capital Management L.L.C., a multi-strategy investment management fir. He has over 15 years of experience in the financial industry, specializing in equities, futures, and event-driven trading strategies.
He is also the founder of TheLongVol.com, a blog and newsletter that shares his insights on his investing process, travel, and other private investments. He has been featured in Bloomberg, Arizona Business Journal, Business Insider, Yahoo! Finance, Forbes, Seeking Alpha, and other publications over his career on Wall Street.
