Travel at Your Leisure

Andrew Giovinazzi

Yo Pit Crazies,

I’ve been using my newest bull market strategy to trade Carnival Corp (Ticker: CCL) lately. The trade produced a 90% gain on the position overall. What surprised me is the strength in the leisure area after a big move.

Some of you are thinking big tech is the only game. Not true.

CCL is up 100% since the beginning of May! 100% in two months!

Nvidia Corp (Ticker: NVDA) gets all the press, but there are a bunch of other companies that can move big that have not recovered from the recession.

The recession was short last year when rates exploded due to a variety of factors. Many stocks never recovered since investors were waiting for the next shoe to drop. So far, no shoe is dropping. It could but not today.

How does one trade with confidence in a stock up 100%? That’s the issue – stocks can fly in a bull market.

Let’s fly!

Market Momentum is Still Important

For all of you interested in a good book on trading psychology, there’s none better than Edwin Lefevers semi-autobiography of Jesse Livermore, Reminisces of a Stock Operator. This is the best $12 you will ever spend, and it’s a great read. I try to reread it every year because you can never get enough of a good thing.

One topic the book discusses is the law of big numbers. I’m paraphrasing here, but in bull markets, dollars are coming in, and traders see targets.

I think it’s human nature. CCL will go to $20. Apple Inc. (Ticker: AAPL) will go to $200. For some reason, nice even numbers – ask Jesse, as he figured it out 100 years ago – is what the market wants.