VIDEO Exclusive: My Latest Trade Idea…

Stocks are making big moves this week…

Apple Inc. (NASDAQ:AAPL) and Tesla Inc. (NASDAQ:TSLA) are in the news as speculators pile in following their respective stock splits. The tech trade is getting even frothier as we kick off the new trading month.

But we can’t just throw our money at whatever stock is streaking higher any given day. Remember, obeying our risk-reward parameters is crucial if we want to stay consistently profitable!

Instead of chasing the booming mega-cap tech names, I have different trade in mind this week. It combines two of my main strategies: It’s a diamond in the rough that hasn’t fully participated in the recent rally that’s also starting to show some newfound momentum.

Click the screenshot below where I reveal how to play this new trade:

 

Keep it In the Money,

Alan Knuckman

Alan Knuckman
Editor, In-The-Money

Chart of the Day: Walmart vs. Amazon

Greg Guenthner

There’s a new wrinkle in the battle for retail supremacy between Walmart Inc. (NYSE:WMT) and Amazon.com (NASDAQ:AMZN)

We last discussed this budding rivalry way back in April when the market was first starting to explode off its pandemic lows. I noted how neither AMZN nor WMT were content to wait for the averages to recover before making their respective moves. By April 13, both stocks had already posted new all-time highs… and we all know what happened next.

Amazon and Walmart are two no-brainer winners that have managed to cement their services as essential businesses during the COVID-19 shutdowns. Amazon led the way by pledging to hire thousands of new workers to keep up with surging demand, while Walmart has crushed the curbside grocery pickup game.

Now, Walmart’s much-anticipated Amazon Prime competitor has finally hit — and investors like what they’re seeing. The company is calling the subscription “Walmart+” and it will cost customers $98 per year.

“Walmart+ members will get access to unlimited free delivery on more than 160,000 items, from groceries and toiletries to toys and electronics, which will be delivered to their doorsteps as soon as the same day. To qualify, orders must be at least $35,” Yahoo Finance reports. “The Walmart+ membership also features fuel discounts of up to 5 cents per gallon at Walmart, Murphy USA and Murphy Express gas stations. Members can access the Scan & Go feature in the Walmart App, allowing customers to pay on the spot and avoid the cashier lines.”

We’ll soon find out if Walmart’s efforts are able to steal some market share from loyal Prime subscribers. But so far, the market is reacting favorably to its potential. WMT shares jumped 5% on Tuesday to new all-time highs…

WMT

Walmart has now gained 45% off its pandemic lows — not a bad move! However, Amazon shares have more than doubled since March. If Walmart’s new subscription service is a hit, the stock stands a chance at closing this performance gap over the next few quarters.

Trading Tip of the Day

As trading legend Jesse Livermore once said, the real money made in speculating has been in commitments showing a profit right from the start.

What Livermore means is your trades that begin to work for you right away are probably going to turn into your biggest winners.

Look back at your most recent successful trade. I can almost guarantee that most of them were strong right out of the gate.

A trade that’s green from the get-go can work wonders on your psyche. With gains on the books right away, you’re not worried about a flailing trade trying to fight its way back to breakeven. Instead, you have a position that has immediately confirmed your thesis. You’re then more likely to hold on for the bigger gains if you’re already sitting on profits…

— Greg Guenthner

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Alan Knuckman

Alan hails from the home of options trading in Chicago, where he began working as a clerk on the floor of the Chicago Board of Trade (CBOT). Beginning with his days on the floor, Alan’s worked with all aspects of the options markets for the past 25+ years.

Transitioning from a clerk to a floor...

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