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FDX is dead money walking; buy this instead

Sep 16, 2022

Good morning!

‍And we’re off with traders taking things to the downside yet again.

Are they trying to unload or simply get ahead of the Fed’s next move?

That’s the trillion-dollar question.

Here’s my playbook.

How to play Quadruple witching

Today’s a “quadruple witching”. Meaning, index futures, stock futures, index options, and stock options expire on the same Friday. This only happens four times a year.

Why does this matter? The theory is that the large numbers of expiring contracts pushes up trading volume as traders try to offset, take profits, and roll out contracts, while computers actively sniff for arbitrage opportunities that result from the block trades. Market makers, of course, try valiantly to hold on in the middle.

Historically, this has created volatility but things could be different these days. It’s far more likely that most traders made their moves in the preceding few days which would explain the last few days of wild churn and burn.

How to use this to your advantage. Volatility can be dramatically higher which means that selling options and placing LowBall Orders for stocks you want to buy could be ideal.

Play offense, even if it means thinking defensively!

Yvon Chouinard’s “climate” move not what it appears

Climate changers and woke folks around the planet lauded billionaire Patagonia founder Yvon Chouinard’s move which he described as a last-ditch, herculean effort to save the planet.

Uh-huh.

There’s another side to the story and, as usual, it’s ugly. Chouinard’s move may have saved him and his family $700 million in taxes while allowing him to retain control of Patagonia. In other words, business as usual.

No word from the “tax the rich” crowd this morning … imagine that.

FedEx won’t “be there” at all; buy this instead

Yesterday’s earnings were a rude awakening for FDX stockholders and the faithful who refuse to grasp that the world is changing under their feet. (Read)

FedEx has been in trouble for a long time. In fact, I’ve repeatedly encouraged investors to avoid it since spring ’21 when the stay-at-home trade began to break down. In fact, I urged you to buy puts right here in the Morning 5 with Fitz on August 21st as a way to play the imminent downside.

Anybody who did is probably grinning ear to ear – and I hope you’re one of ‘em!

FedEx is NOT coming back anytime soon. AMZN is the play here.

Karp talks Palantir with billionaire investor Stanley Druckenmiller

You’ve probably never seen anything like this. A totally unguarded, candid, and relaxed interview with Dr. Alex Karp who co-founded Palantir and billionaire investor Stanley Druckenmiller.

You owe it to yourself to watch. (Watch)

Three guesses about what to do next, and the first two don’t count.

A BLT inspired breakthrough battery

Researchers at Harvard have reportedly created a battery that will charge in 3 minutes yet last for 20 years or 2X longer than current EV batteries. Cycle capacity is 10,000 cycles … in the lab. (Read)

Adden Energy, the startup tasked with bringing this to scale is private. But mark my words, the biggies will circle quickly if it’s the real deal.

I’ll try to find a way in.