Yo Pit Crazies,
The Invesco QQQ Trust (Ticker: QQQ) is back to reality.
All the 2021 gains from 2021 are toast and I see us now deep into 2020 levels, around election time and prior to the vaccine launch levels.
That is a big fall from grace.
QQQ, which closed yesterday at 287, was 240 prior to the pandemic. So there’s more than 45 more points in there for the potential downside. Most of the small growth stocks are down 80 to 90% already.
You know what that means?
There has to be a bargain somewhere.
Qualcomm is a cheap stock
When the market decides to throw the baby out with the bathwater, I don’t ask why.
And right now, one of the premier chip makers is trading at 10x earnings. As Frank has been apt to note in Capitol Gains, there is a chip shortage. I figure I’m not paying 50x for Nvidia Inc. (Ticker: NVDA), so Qualcomm Inc. (Ticker: QCOM) looks good.
For our Cap Gains idea, long QCOM and short QQQ as a value play should work well.
If you want to see how to set it up, call our Customer Care Team at 1-888-872-3301 and get on board in time for our class on Wednesday. (You may even have some credits that expire at the end of this month.)
You will be glad you did.
Power Income Trader:
The Power Gains duo of Bill Griffo and myself closed the last VanEck Vectors Gold Miner ETF (Ticker: GDX) Jul01 33/36 call spreads at $.95 for a 45% gain overall. Griff is 9-for-12 in his last dozen Power Income Trader trades, including wins of 73%, 91% and 94%.
Capitol Gains
A Quantumscape Inc. (Ticker: QS) and Canejo Corp (Ticker:CCJ) May20 20/35 call spread and 13/17 put spread closed for a 6% gain. That might not seem like much but I got to ride the QS calls for a month for a credit. You never know.
Option Shopper
Licia went shopping at Walmart Inc (Ticker: WMT) and closed out a 72% gain.
To Your Trading Success,
AG