| Hey traders, Lance Ippolito here! Welcome to our Weekly Rundown, where we'll share some of our top trading ideas — and our biggest winners!
There's something rotten on Wall Street this week, and I'm not talking about Elon Musk's acting chops.
Cathie Wood has been a red-hot, A-list star of high finance since the onset of the pandemic. But there's been a mass sector rotation strategy going on, and Wood's Ark Innovation firm is taking on a lot of water…
Shares of her Ark Innovation ETF (NYSEArca: ARKK) shot into the stratosphere from March 2020 lows of $37.85 to a high of $159.70 in February 2021.
The ETF's portfolio reads like a who's-who of growth tech darlings like Tesla Inc. (Nasdaq: TSLA), Teladoc Health Inc. (NYSE: TDOC) and Roku Inc. (Nasdaq: ROKU).
Everybody loves a winner… And for most of the year, Wood has been on one heck of a winning streak.
So it's no surprise that a lot of the stocks her funds invest in grew cult-like followings… Every cult needs a leader, after all.
But winning streaks eventually come to an end. And this streak is the victim of a sector rotation strategy that began in February…
Don't Follow Wall Street's Flavor of the Month
If ARKK's chart were making similar moves to other indexes, that would be one thing…
But… It's not.
So what does this have to do with you? It's a learning opportunity.
Yes, Wood's ARK was the greatest thing since sliced bread and made a lot of money at one point, but that's not the case anymore. ARK is drowning while almost every other sector is crushing it.
And, yes. Maybe in five or more years, the ETF and those stocks will have everyone popping champagne again… but that leads me to the most important question: Are you a trader? Or are you an investor?
Because I don't want to wait five years to be wealthy. I want to make money now. And there are plenty of chances to do so if we stop following the newest trend and don't worry about the "sexy pick."
Now, onto some...
BIG Wins
We had a few more big winners this week from our Blockbuster Breakouts Calendar, 3D Profit Surges and Weekly Blitz Alerts services.
On April 28, we saw massive buying in Heron Therapeutics Inc. (Nasdaq: HRTX) calls — over $1.2 million worth — ahead of its upcoming catalyst date. Heron is developing the first non-opioid for postoperative pain management. My Blockbuster Breakout Calendar service added to the position on May 6 at a significant discount, and we were rewarded on Monday after a nice 12% pop in the stock.
- +60% on the first half of HRTX May 21 $18 CALL
- Entered on May 6 at $2.00 a contract.
- Exited on May 10 at $3.20 a contract
3D Profit Surges members were alerted on April 8 to a potential trendline breakout to the upside in Wendys Co. (Nasdaq: WEN). The stock saw a surge of insider buying after trading sideways for most of last year. The service entered July 16 expiration options to capture the May earnings event. Shares popped at Wednesday's open before volatility to quickly shift earnings momentum.
- +87.5% on WEN July 16 $21 CALL
- Entered on April 8 at $1.60 a contract.
- Exited on May 12 at $3.00 a contract
Over at Weekly Blitz Alerts, we jumped at the chance to target weakness in the telemedicine firm American Well Corp. (NYSE: AMWL). The Weekly Blitz Alerts Tracker spotted a big bet in the AMWL May 21 $12.50 puts of 1,050 contracts. The first exit alert was sent Monday after AMWL moved 8% to the downside for a nice 36% gain. AMWL saw another 8% on Thursday, causing the May puts to explode in value, doubling the entry price at the time of the alert.
- +100% on the second half of AMWL May 21 $12.50 PUT
- Entered on May 4 at $0.50 a contract.
- Exited on May 13 at $1.00 a contract
Be sure and check out our Weekly Blitz Alerts service for more BIG winners like this!
If you have a big score you'd like to share with your fellow Future of Wealth readers, email us your screenshots of the trade and/or any details you want to share at wptestimonial@gmail.com, and we'll celebrate them here!
The Strategy Every Trader Needs to See
We're probably all aware of what Wall Street legend Chuck Hughes has been doing lately...
So the enormous gains he's pulled from the stock market... and the way he's been helping traders around the globe reach their dreams aren't exactly well-kept secrets.
He's revealing the secret behind his Triple Threat strategies that gave him the chance to grow a small $5,900 account into $212,217 plus — in just two years!
Signing Off
If you're looking for more compelling trade ideas and stock market musings to read and help you prepare for what lies ahead, here's what other experts at WealthPress are saying:
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