Weekly Newsletter | Unveiling The Queen Of Insider Trading And Dramatic Effects Of Triple Witching

Unveiling The Queen Of Insider Trading And Dramatic Effects Of Triple Witching😬📈📉😬

• The Queen Of Insider Trading Continues

• Overall Market Outlook

• The Significance Of Triple Witching

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Hands Down The Best “Trader” In The Stock Market💲👑💲

How It All Started

Before the semiconductor bill vote, Nancy Pelosi's husband, Paul Pelosi, made a significant investment in NVIDIA by purchasing call options worth between $1 million and $5 million. These options allow the holder to buy stock at a set price in the future. This investment raised eyebrows because it was made just weeks before the House was scheduled to vote on a bill that would boost the U.S. semiconductor industry. (Source: Fox Business)

The timing of the investment led to allegations of insider trading, with critics arguing that the Pelosi family could have benefited from non-public information about the upcoming vote. Despite these concerns, the Pelosi family maintained that their financial decisions were based on publicly available information. The semiconductor bill, known as the CHIPS Act, aimed to provide substantial funding to support U.S. semiconductor manufacturing, making investments in companies like NVIDIA potentially lucrative. Following the bill's passage, NVIDIA's stock price increased, resulting in significant gains for the Pelosi investment.

Since then, Nancy Pelosi has also held her own call options, which have generated substantial gains. This has led some to consider her one of the most successful "traders" in recent history. She has made over $5 million from $NVDA alone. It’s almost a no-brainer to copy her trades.🤣🤣🤣

Experts Predict Explosive Growth for S&P 500 by Year End!🚀🚀

The S&P 500 has achieved new record highs in 25.9% of trading sessions so far in 2024, driven by a robust tech rally. This remarkable performance has prompted Wall Street to revise its year-end targets, with Evercore ISI increasing its target to 6,000 and Goldman Sachs raising its target to 5,600. The benchmark index surpassed the 5,400 level for the first time last week and closed Friday at 5,464.62, reflecting strong market confidence and optimism about future gains.

AI-related stocks have been the primary force behind this market ascent. The surge in AI and tech investments has significantly bolstered market performance, demonstrating investor confidence in the transformative potential of these technologies. Companies involved in AI development and deployment are seeing increased valuations, contributing to the overall upward momentum of the S&P 500. This tech-driven momentum has led analysts to anticipate even higher gains by the end of the year, emphasizing the importance of the AI sector in sustaining the market rally.

Furthermore, the seasonality of an election year is expected to amplify market gains. Historically, election years bring increased fiscal stimulus and policy stability, creating a favorable environment for stocks. Government spending often increases, and policy decisions are typically aimed at stimulating the economy, which boosts investor confidence. When combined with the robust performance of AI companies, these factors suggest that the stock market is poised for further growth. Analysts predict that the S&P 500 could continue its rise, potentially reaching new record highs as the year progresses, driven by both technological advancements and favorable economic policies associated with the election cycle.

Trading Through The Witching Volatility : A Force To Be Reckoned With 😈

On Friday, the stock market presented a mixed performance as the AI chipmaking giant Nvidia experienced its second consecutive day of declines. The Dow Jones Industrial Average saw a modest increase of 15.57 points, or 0.04%, closing at 39,150.33. In contrast, the S&P 500 dipped by 0.16% to end at 5,464.62, and the tech-heavy Nasdaq decreased by 0.18%, finishing at 17,689.36. As the week neared its conclusion, trading activity remained fairly volatile, until the market approached the triple witching hour—a period marked by the simultaneous expiration of stock index futures, stock index options, and stock options, typically leading to increased trading volume and volatility. (Source: The Street)

On triple witching days, stock markets often experience increased volatility and trading volumes. This event occurs four times a year—on the third Friday of March, June, September, and December—when stock index futures, stock index options, and stock options all expire simultaneously. As traders close, roll over, or offset their positions, the heightened activity can lead to significant price swings, causing stocks to slip lower due to the heavy trading and adjustments by market participants.

Max Pain Theory

Max pain, or the max pain price, is the strike price with the most open options contracts (puts and calls) and the price at which option buyers lose the most money. Market makers and other large investors often aim to close the stock price near this level to minimize the amount they have to pay out in options contracts. By understanding where the max pain point is, traders can predict potential price movements, as market makers may influence the stock price to move towards this level to reduce their payout obligations. This can provide insights into price trends leading up to the expiration of options especially during quad witching.

STOCKED-UP NEWS ON THE GO 📰

Upcoming Digital Marathon Shareholder Meeting $MARA meeting will be on 6/27/24. Watch out on possible dilution of 15 million shares if proposal #4 vote gets approved.

Social Security projected to run out of money to pay full benefits in 2033 and Medicare in 2036 These projections highlight the need for urgent legislative action to ensure the programs' sustainability. Without intervention, millions of Americans could experience significant reductions in their benefits, impacting their financial security.

Michael Saylor's MicroStrategy Acquires 11.9K More Bitcoin for $786M Saylor, continues to aggressively invest in Bitcoin through MicroStrategy, which now holds over 200,000 bitcoins. This massive accumulation underscores Saylor's unwavering belief in Bitcoin's potential as a premier store of value and a hedge against inflation.

Bill Gates Is Ready To Put Billions Into Nuclear Power Bill Gates' pledge of $1 billion to nuclear energy is a crucial step in addressing climate change. It underscores the urgent need for governments and businesses to prioritize nuclear energy as a key solution to combatting global warming.

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DISCLAIMER: None of this is financial advice. This newsletter is strictly educational and entertainment purposes only. It is not investment advice or an alert to buy or sell any investments or to make any financial decisions. Please be careful and do your own due diligence.