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Wednesday, August 9, 2023
Chart of the Week: Brookfield Renewable Partners (BEP)
Alternative Investments: Education on the Venture Capital Field
Wednesday, August 16th at 4:30pm ET / 1:30pm PT
Join Option Hotline Chief Options Strategist, Keith Harwood, as he interviews Jason Jacobsohn, Managing Partner of Propellant Ventures, to discuss this alternative investment strategy. Find out what venture capitalism is, how the venture capital world works regarding investing in funds, and an overview of risks and potential benefits with VC investing.
Chart of the Week: Brookfield Renewable Partners (BEP) by Ian Cooper
Weakness in Brookfield Renewable Partners (BEP) looks interesting.
Over the last few days, the BEP stock dropped from about $30 to $26.76, and has become severely, technically oversold. The stock fell on reports the company is being probed by Britain’s Competition and Markets Authority over an acquisition.
Last October, Brookfield Renewable formed a partnership with Cameco Corp. to acquire Westinghouse Electric for $7.9 billion. Once the acquisition is completed, Brookfield Renewable will own a 51% stake in Westinghouse. Cameco would own about 49%. Given the size of the acquisition, Cameco says that it’s part of the standard approval process.
That clarifying news could help BEP recover from its recent and undeserved low.
When you’re trading options as a retail investor, you can’t rely on pricing models alone. If you believe, for example, that the March 2000 call is undervalued and therefore a good buy, it’s not enough. As a retail investor, you’re looking at more than just the relative value of an option, hoping to turn a quick profit on a put or a call, buying an option at, say, $3 and selling it at $3.75. Retail investors must have a longer time horizon than floor traders. As I jokingly tell investors at my seminars, floor traders like me have about a 15-second attention span. It doesn’t matter what I’m doing, I can only focus for 15 seconds.
That usually gets a laugh out of people, but a floor trader (remember the emphasis is on TRADER, not INVESTOR) is competing against dozens of other traders to hedge each purchase or sale as quickly as possible. Why? Because the quickest traders will remember the resting orders in the brokers deck from 10 minutes to two hours ago and hit those orders as the market rallies or dives. Once the resting orders are gone, the last report is to hedge with the underlying security and when the stock specialist or Nasdaq market maker sees hundreds or thousands of shares of buyers or sellers hitting the market they run. Being 15 seconds late in my world is an eternity. The complete picture of the stock can change in half that time, so speed is of the essence.
Elite Wall Street trader, Joe Duffy, is allowing a limited group of future-elite investors into his masterful daily trades at thousands of dollars less than what others charge.
When you join today for $1, the first month you'll receive:
Joe Duffy’s daily video newsletter with updates on what's happening in the markets that very day. Rather than watch talking heads for hours on cable, I'll get you up to speed in minutes.
You get weekend updates where I delve more into 'bigger picture' looks at the marketplace. Videos are illustrative, instructive, concise, and un-hedged. No double talk here.
The first profit opportunity we will review is in DAKT, or Daktronics Inc. DAKT has strong leadership positions in, and a supplier of electronic scoreboards, computer-programmable displays, and large screen video displays and control systems.
The monthly chart shows that DAKT has been above the moving average line all year. If the stock price is above the moving average line, the trend is up.
The daily chart shows that DAKT has been forming a bullish pattern of higher highs and higher lows since December. The bullish pattern points to a further advance.
We recommend buying DAKT stock at the current price level.
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