Friday, April 22, 2022

♟ Wall Street's Big Tip-Off - Do You Know It?

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Nucor

"The signal was that other steel stocks like Nucor should also report great numbers and enjoy a similar response."

Karim Rahemtulla, Head Fundamental Tactician, Monument Traders Alliance

Karim Rahemtulla

Can you read the signs?

Trading stocks is all about interpreting data and signs.

Just like a catcher in baseball, Wall Street tries to throw you a bunch of signals.

A sound trader sees the signals, interprets them properly and takes action at the right time.

Take yesterday, for example. A company called Nucor (NYSE: NUE) said this when it reported earnings:

End use market demand remains strong for steel and steel products, and we remain confident that 2022 will be another year of very strong earnings and cash flow for Nucor.

We expect that the second quarter of 2022 will be the most profitable quarter in Nucor's history, surpassing the previous record set in the fourth quarter of 2021.

Second quarter earnings will be driven by increased profitability in the steel products segment, which continues to benefit from robust demand in nonresidential construction markets. In addition, the steel mills segment earnings are expected to strengthen due primarily to increased profitability at our sheet and plate mills. Similarly, Nucor's raw materials segment is expected to generate increased profits in the second quarter due to relatively higher selling prices for raw materials.

That's a strong statement.

So strong that it lit a fire under the stock despite a down market.

But even more importantly...

It was a signal.

A signal that other steel stocks like Nucor might report great numbers and enjoy a similar response.

The Only Stock That Could ROCKET in Today's Market

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This is what I posted in The War Room...

Karim R. 4/21/2022 at 9:56 a.m.
Nucor's reaction to numbers could bode well for United States Steel and Cleveland-Cliffs.

Lo and behold... that's exactly what happened.

This morning, Cleveland-Cliffs (NYSE: CLF), a major steel producer, reported blowout numbers, and the market rewarded the shares with a 10% pop in morning trading.

Cleveland-CLiffs Performance
 

What's the lesson here?

When you know how to read the signs, you can come away with a winning trade in less than 24 hours.

Here's what one astute War Room member who doubled his money overnight had to say...

Scott G. 4/22/2022 at 9:32 a.m.
CLF Apr 22 2022 $30.50 Call (Weekly) - in yesterday at $0.78, out just now at $1.60. Thanks for that earnings play nugget yesterday, Karim!

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YOUR ACTION PLAN

Our ability to interpret Wall Street's signals has allowed us to achieve a 77% win rate in The War Room - despite a tough market in 2022. Join us now so you can hop on the next Cleveland-Cliffs trade!

The "Secret Tech Companies" Delivering Big Profits

Cirrus Logic
 

Cirrus Logic... Q Technology... Micron Technology... these are all little-known tech stocks that saw 10-bagger gains after getting into the Big Tech supply chains. It took as little as 18 months or as long as 12 years.

And now, another $10 stock could join them.

It just broke into the Tesla and Samsung supply chains. And Apple reportedly is collaborating with the company on a $330 million facility to add the company's tech to the iPad and iPhone.

What is this special tech that the $10 stock developed? See it in action right here.

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FUN FACT FRIDAY

U.S. firms that "rely on domestic supply chains or have a high domestic manufacturing footprint" continue to outperform, based on indexes from Goldman Sachs. Meanwhile, investors are punishing companies for offshoring.

Offshore vs. Onshore Stock Performance
 

If you are looking for an easy and diversified way to profit, consider the ProShares Supply Chain Logistics ETF (NYSE: SUPL). This brand-new ETF gives you a basket of logistics companies that are looking to solve supply chain issues. More details here.

 

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