Tuesday, September 15, 2020

The surprise hot sector (and how I’m trading it)

I believe that some of the biggest winners in this sector have yet to be discovered...

September 14, 2020

How to Trade Electric Vehicles Without Trading Tesla

✔️ Tesla's up 1,100% this year ... but why?

✔️ Why electric vehicles could require $6 trillion in new spending … and why it's a good thing.

✔️ Plus, big news about my buddy Tim Sykes' all-time favorite pattern...

Electric vehicles are so hot right now.


Sales are surging in the U.S., and there's an emerging market in China. The stock market is mirroring this global trend — EVs are one of the hottest sectors of 2020.


Need proof? The share price for Tesla, Inc. (Nasdaq: TSLA) has risen as much as 1,100% this year … Does that mean you're already too late to get in on the action?


No way. I believe that some of the biggest winners in this sector have yet to be discovered. 


There's a lot of room to grow in this sector — so just because you didn't catch the huge moves on the TSLA ticker doesn't mean you can't take advantage of the EV craze.


Let's take a look at EVs … including how the trend has evolved, how Wall Street has reacted to the craze so far, and where the industry's headed next.

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That's why Tim Sykes made Supernova Alerts.


It's his personal alert service that helps you get in on volatile stocks early (so you're not left chasing them after it's too late).


See how Supernova Alerts can make trading more predictable for you.

Growing Sales


Here in the U.S., EVs are selling as fast as factories can build them. That's one reason Tesla has been so hot this year — after losing money for decades, the company's finally starting to turn a profit.


When a sector leader like this paves the way, smaller companies are quick to jump on the emerging trend. The stock prices of EV manufacturers have been spiking all year.


There are several reasons why this sector's been trending: 


  • Pollution is a major problem for China's megacities. EVs provide a literal breath of fresh air.

  • Europe has some of the strictest pollution laws on the planet. The European Union has been encouraging EVs to use through tax incentives.

  • Around the world, demand and sales are on the rise for EVs even as overall vehicle sales are slumping. 


Right now, Tesla's still the dominant player. But there's definitely room for more winners in this sector. If EVs are in fact here to stay, we'll need more than just cars…

Serious Infrastructure


The infrastructure for an EV-dominated world won't come cheap. 


In 2018, Goldman Sachs put out a research report on Bloomberg where it was estimated that the necessary charging infrastructure for EVs could cost up to $6 trillion.


To me, this report looked like a scare tactic. Plus, the Goldman Sachs Group, Inc. (NYSE: GS) was short TSLA at the time. 


If it was a scare tactic, it didn't deter companies from jumping on the EV bandwagon.


With dollar signs flashing in front of their eyes, companies got to work, attempting to create cheaper and more effective charging station solutions.


Creativity and innovation have ensued. For instance, one company is using solar panels to capture power instead of relying on the grid.


Cities and businesses are trying to attract eco-conscious consumers. Firms are eager to have charging stations installed. Prime targets include shopping malls, office parks, and city centers.


Now that you've got the picture, let's talk about how I'm approaching this sector as a swing trader.

What could you do if you were free from the "daily grind"?


Because…


Most people stay shackled to dead-end jobs for the majority of their lives...


But, what if you could break the chains?


You can…


Tim Sykes shows regular people how to make money with only "a laptop and an internet connection".


If you put in the work and get prepared…


You can enjoy the freedom of the laptop lifestyle…


The best way to get started?


Take the Tim Sykes Trading Challenge…


Click the link to take the next step.

Swing Trading EVs


As the EV market continues to grow, there will be some big winners. But I'm not bothering to try to guess 'the next Tesla.'


Instead, I'm looking at the companies that could benefit from the trend, regardless of the manufacturer that ends up dominating the market. I'm looking to swing trade 'pick and shovel' plays — companies that make the stuff EVs need.


My lawyers won't let me tell you about my current positions ... but I can tell you what each business does so you have an idea of how I'm looking for sympathy plays around the EV sector.


Charging Stations


EVs might not need gas, but they still need fuel.


I've already mentioned the massive infrastructure that needs to be built. Right now, only a few companies are exclusively in the EV charging space. It's got room to grow.


Look for companies that make it easier and cheaper for EVs to get a charge. But don't stop there — look at the supply chain, too...


Lithium-Ion Batteries


Technology for EVs is still developing — but one critical part of every EV is the battery.


The dominant technology right now is lithium batteries, so I'm watching lithium suppliers that have the equipment to mine, refine, and deliver to suppliers. 


Remember — some sub-sectors might not be as fast-moving as others. 

Due to the nature of lithium mining, I don't expect huge spikes. If there are spikes, they'll probably be short-lived.


So rather than making an investment in the metal, I'm looking to capitalize on existing businesses — especially if they're expanding as a result of the increased demand for their products.

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Sparks Will Fly


Rather than trying to find 'the next Tesla,' I'm looking for businesses that will supply all of the eventual EV winners — no matter who they are.


Markets have already shown lots of excitement for EVs. I think the trend is only beginning.


With fierce competition, not every player will stand the test of time. So I'm focusing on peripheral companies that could deliver returns in the meantime, rather than trying to dig for gold — or in this case, lithium!


Remember: there are no 'sure thing' trades. Always have a plan, and cut your losses when you're wrong. Don't let a small mistake cost you big.


It's electric,


Paul Scolardi

Editor, Swing Trade Millionaires

P.S.  Tim Sykes started his trading journey with a very simple pattern…


He didn't have a finance degree…


A fancy setup…


Or a mentor…


And he took his ONE simple pattern and made millions off of it.


It's a repeatable pattern he uses all the time…


And he wants to show it to YOU.


Click here to see Tim's most profitable pattern

*Results not typical. Paul Scolardi teaches skills others have used to make money. Most who receive free or paid content will make little or no money. Most traders lose money. We do not guarantee any outcome regarding your earnings or income as the factors that impact such results are numerous and uncontrollable. You understand and agree you will consider the important risk factors in deciding to purchase any of our products or services. Past performance in the market is not indicative of future results.

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