PropNotes

PropNotes

Good morning gang! Every Monday from now on we will present our top spread trade idea of the week. This week, we are looking at a 3d printing spread between Desktop Metal & NanoDimension, and Stratasys & 3D Systems. If you look out 5-10 years in the 3d printing space, most of the uses for 3d printing and additive manufacturing will be within the automotive,...

PropNotes

Good morning everyone! From now on, every Thursday morning we will be highlighting our favorite trade setup of the week. This week, we will be taking a look at a short setup in A. Agilent Technologies makes lab equipment for life sciences and chemical companies, which is a stable and growing market. The company does a lot in revenue - roughly 6 Billion over the...

PropNotes

Each Wednesday from now on, we will be publishing an idea about an interesting, under-the-radar stock that we think has long term potential and deserves a little attention. This week, we are looking at DNMR. For those who are unfamiliar, Danimer Scientific is a bioplastics producer based right here in the USA. The company went public via SPAC last year, and after...

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Exactly what it sounds like! Each Tuesday from now on we will be publishing our sector reads. These reads combine relative and absolute performance projections in order to come up with strength profiles. You could use these as the basis of a long/short sector strategy, or as a starting point for a top-down hunt to find the best positioned single names. The scale...

PropNotes

Eagle eyed viewers of this chart might be able to see that something is *different* between 2010-2019 and 2020-2021. The slope of the market's ascent over the last 16 months has been nothing short of astonishing, and it's more than double the slope of the previous decade. Even if you make the chart a log chart, the slope of the recent recovery is still higher than...

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COST is an above average company with great execution on it's business plan. However, the stock, which now trades at a RICH 44x FWD earnings, is beginning to look expensive - given that's a premium to the market's long term average of 15x earnings, and even still a 30% premium to COST's average valuation over the last 5 years. Combined with the recent UMCSI...

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AVGO daily chart is setting up for a huge breakout, should the right market conditions present themselves. Trading at only 14x FWD EV/EBITDA, this cheap semi conglomerate has a lot of upside should XLK continue its outperformance and the market remains how it has been. Earnings revisions have been trending upwards as well. Fiscal EPS Esti YoY Gwth 1M Trend 3M...

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This morning, the UMCSI printed a 70.2, which is the worst number since March of last year and, prior to that, the end of 2011. If you were wondering why TLT is up 1.4% today, and XLP is crushing, while XLY and XLF are getting hurt, it's because a slowdown in consumer sentiment is REALLY bad for inflation expectations and retail spending. This further plays into...

PropNotes Updated 

It might finally be time to short this bad boy. Stock has been on the run of all runs, and today possibly caps an unbelievable buying crescendo as it truly feels as though sentiment may have peaked. Piecing into this seems like the move because it's going to be hard to tell when it's peaked precisely. The only way to short this would be with a defined risk put...

PropNotes

Just been looking at this chart more and more lately. Seems like PFE wants higher into the 50's-60's. It's certainly been trading sideways long enough. Also, doesn't seem like MRNA should be trading at 60% of PFE's market cap. Potential for an interesting long short trade here. Cheers!

PropNotes

This idea is really just a follow up to another idea we posted a little while back about this same scenario playing out. Looks like we might be there, again! We are bidding lower. Cheers all!

PropNotes

Something happened this morning that I think is worth talking about - the official death of the categorical re-flation trade. Thanks Delta Variant and UMCSI! Over the last eight months, there's been a lot of prognosticating about the state of inflation within the economy, coupled with fears that the Fed had gotten it wrong. Runaway Inflation was considered a key...

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PropNotes Updated 

My thoughts on why traders fail, and each of the stumbling blocks that people find themselves against. Cheers!

PropNotes

-- With Senate Majority Leader Chuck Schumer proposing legislation on Wednesday to federally legalize Cannabis, it's important to analyze what ETF options investors have to invest in the budding sector. -- There are many different ETFs, each with different liquidity profiles, investment strategies, and geographical focuses. -- MSOS and YOLO are the best...

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Morning all! An oft-overlooked stock, RAD is trading at a solid value to it's underlying performance on a number of metrics. As it happens, investors weren't happy with the previous earnings report, and the stock has slid some 30%+ in the last few weeks. This presents a great opportunity for long term investors -- selling the 11 strike, October monthly puts....

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Good morning guys! So I was chatting with a good friend last night (who is an excellent prop trader), right as he was in the middle of analyzing the recent split trade phenomenon that's been going around. If you haven't been paying attention, over the last several months, AAPL, TSLA, and NVDA have conducted stock splits, which have each boosted share prices +40%,...

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Hey guys! Happy Independence Day! I hope everyone has enjoyed the holiday weekend and gets some rest on the day off tomorrow. Today's trade is an old pick that's come back into an area I wouldn't mind starting to scoop some via long shares and short otm puts. Reminder: DM is a company that makes 3d printers that print metal, an industry that's supposed to expand...

PropNotes Updated 

Good evening! Just wanted to throw up a quick post, because it seems BTCUSD and crypto in general is in a very interesting spot. Right now, we are in the midst of a massive volume node, between 41k and 31k. As of this very minute, we are bouncing off of a huge area of support, which has held numerous times since the initial breakout above 20k last December. The...