Hey! I’m @yourboymilt, and welcome to retail’s Sunday Paper.
I should probably let you know...This is not financial advice! We are here to entertain while giving you ideas, perspective, and angles. Do your own research, I prithee. And if you aren’t subscribed, join us here:
Creator/Editor:@YourBoyMilt The Architect: 🧠 Publishing Associate:@YourGirlRachie
Pt. 1: Week’s Thoughts, Pt. 2: RKT DD (@tradernest), Pt. 3: 1k to 121k in a Month (djlowkey), Pt. 4: Crypto DD (sourmilk, capybara), Pt. 5: Watchlist, Pt. 6: Index Forecasts (@daarkmaagician ) Pt. 7: TLDR
🔥Pt. 1: Fury Road
It’s as if the funeral date was set for Friday, and the bulls somehow rose from the dead.
Another week in the books, and yet another improbable victory for all stubborn call holders nationwide. The continuing race forward through all-time highs has become a scorching journey, a dangerous ride in an unforgiving desert of problematizing economic factors. We’re now fully strapped in for the ride, chained to this runaway vehicle of a market, watching helplessly as the bombs of fiscal policy burst all around us.
This week was a win which shouldn’t have been so; Monday, the stretch of desert ahead was hot, sandy, and without a drop of relieving policy water in sight. Nonetheless we made it through, and each of our potential market issues fizzled into harmless bursts of bearish smoke in the sky. Shockingly, jobless claims rose, breaking free from its continued decline as Americans get back to work:
The number of Americans applying for unemployment benefits rose for the first time in five weeks even though the economy and job market have been recovering briskly from the coronavirus pandemic.
Jobless claims edged up by 4,000 to 353,000 from a pandemic low 349,000 a week earlier, the Labor Department reported Thursday.
Damning at first glance, but a rise of 4,000 applicants was simply not enough to rev up high-octane market fears. A deeper look reveals that the numbers aren’t as bad as they seemed; many additional applications represented multiple attempts by those facing delays and uncertainty within their state's benefit system. And of course, lest we forget, bad economic numbers are now a good thing; failures in metrics like jobs numbers mean a longer period before the Fed stops the ‘free money’ program. So, although unideal from an economic standpoint, this paltry threat to all-time highs was stricken from Fury Road.
But, it wasn’t only the standard reported numbers that gave the economy a shot in the arm—some old estimates received new revisions this week. GDP growth saw a slight—but nonetheless important—positive revised reading:
The U.S. The Commerce Department’s revised estimate of second-quarter gross domestic product growth showed that the economy expanded at a 6.6% seasonally adjusted annual rate, slightly above the 6.5% initial reading.
Looks like another week where everything was copasetic, and yes, I do mean everything. Even memes got in the mix this past week, and as we know they typically tend to accompany a sinking market. The CBOE Volatility Index—$GME—shot up 28% during the 5 day trading week. This sudden spike foretold a collection of memes on parade, with AMC, BB, and others joining the moon mission, seemingly out of nowhere. So, did the market overheat from the meme pop, sending SPY crashing and burning underneath wreckage of sand, metal, and speculative YOLOs? NAY. The indices and the memes chugged along, apes and “real” investors hand in hand, riding toward the unknown promises of Valhalla.
But we all knew the biggest potential grenade, the danger we faced so fearfully, the sandstorm that could’ve swept accounts into the dust and sky never to be seen again; the looming threat of The Jackson Hole Symposium and the Fed announcements that would accompany it. Last week I was all doom and gloom, and got hit with the surprised Pikachu face when the Fed bomb detonated with a flabbergasting fizzle. Here’s what what we expected:
But instead, here’s what we got:
There are a few different factors cited for why this meeting—in which Jerome Powell announced he expects to taper Fed Bond Buying by year’s end—seem to have made markets go absolutely wild on Friday.
“Investors are breathing a sigh of relief as Powell suggests a kinder, gentler Fed tightening,” said Mike Bailey, director of research at FBB Capital Partners. “Judging by the equity move, my sense is mainstream investors expected a harder line from Powell about tapering starting in the fall and rate hikes locked in for late 2022 or early 2023.”
During the speech, Powell also drew a line between asset purchases and interest rates, saying the Fed wouldn’t be in a hurry to begin increasing rates after it begins tapering its $120-billion-a-month bond-buying program.
Hmmmm. Okay. On the surface I guess that’s dovish—but isn’t that actually the worst case scenario we envisioned? Jerome said—clearly and openly—tapering is coming this year, and it will likely be announced formally as soon as the September 21-22nd Fed meeting. I suppose instead of pulling their chips from the table prematurely, the whales are comfortable letting this market run until the absolute last second before the rug pull.
Our truck continues to move steady, chugging along the dirt, winding through the corpses of our various macroeconomic threats. When does the road stop? When does the dust settle? When will that moment come, finally, that’s water for bears in a desert of all-time highs? Perhaps the oasis arrives Wednesday with the start of September, as it’s historically the worst month for stocks on record:
September has been the worst month of the year for the S&P 500 (.SPX), with the benchmark index falling an average of 0.56% since 1945, according to Sam Stovall, chief investment strategist at CFRA. The S&P has advanced only 45% of the time in September, the lowest rate of any month, CFRA’s data showed.
With a historically bad month arriving, a market running red hot, and Quad Witching coming September 17th, we may finally hit the skids on our run through Fury Road. You can hedge up, you can sit out, or you can take your chances and rev the engine forward through it all. After all, isn’t taking risks how you become a legend, guiding your account to Valhalla all shiny and chrome?
Welcome to YEET no. 20, brought to you by WITNESSS
🚀 Pt. 2: Rocketman
Why The Eagle’s Nest says RKT is about to launch
Contributor: @tradernest
Ayo, its Eagle come at you live from the eagle’s nest. We’ve got some ready-to-fly eggs hatching this week, and once we break our shell we are off. Flying through the clear blue skies, there is only one thing this Eagle can see soaring above him; that, my friends, is RKT.
Aside from having a meme literally in the name, there are three reasons I think RKT will rocket:
They’re expanding into multiple compatible profit pipelines
They’re flush with cash and have great fundamentals
Their CEO Jay Farner absolutely hates shorts, and is hellbent on their destruction
RKT is expanding into a few different areas that makes them an untapped gem for future growth in several ways. Think they’re just about mortgages? Think again; they have the recent additions of both auto and solar to their business repertoire.
Shares of Rocket Companies jumped as much as 8% on Monday after the mortgage lender announced an unusual expansion into the solar industry.
The company, which is the largest mortgage lender in the U.S. through its Rocket Mortgage division, will utilize a tech-driven approach that it says will simply the process of installing a rooftop solar system.
The announcement comes amid a boom in residential solar. The last few years has seen a record number of customers turning to solar, but across the U.S. less than 5% of eligible homes currently have rooftop panels. A recent study from the Solar Energy Industries Association and energy consultancy Wood Mackenzie forecast the solar market quadrupling by 2030.
A few things in that quote should get you nice and excited about RKT’s plans for the future. First of all, they’re applying tech driven approaches to a fairly rigid industry, and we all know Wall Street loves DiSrUpToRs. Secondly, solar is a booming industry that is ripe for profits, and a well-run company like RKT should have no problem elbowing their way into market share. Just think, they can refinance your house and sell you those ugly-ass, sun-slurping panels for your roof at the same time—what’s not to love.
As if that wasn’t enough, they’re also expanding into the red-hot automotive market. What’s got us so excited about this? Try the natural “synergy” (I hate that word, too), between auto sales and RKT’s current offerings:
Rocket Auto, the digital automotive retail marketplace division of Detroit-headquartered Rocket Companies, has launched the online car-buying marketplace RocketAuto.com. The Rocket Auto marketplace is going live with more than 35,000 used cars, trucks and SUVs from over 300 dealers nationwide.
In promoting the new online marketplace, Rocket Auto pointed out its parent company’s other enterprises — Rocket Mortgage, Rocket Homes and Rocket Loans — found consumers were three times more likely to buy a car after a mortgage inquiry and 50% more likely to purchase a vehicle after refinancing, according to TransUnion data.
THEY’VE GOT THE GAME. IN. A. CHOKEHOLD. Ask yourself a serious question; how long do you think a stock with this many tentacles stays trading under $20? Exactly. The other comparable product I can think of is LMND, which is also expanding into several spheres outside of its original channels, and is a Wall Street darling thought to have a bright path to profitability ahead. Why not RKT then?
Oh, you need even more convincing? Well, consider this: they’re dripping in cold hard cash to make all the types of moves that investors go crazy for and demonstrate financial stability. Maybe that’s why they popped for nearly 15% after reporting earnings a couple weeks ago. CFO Julie Booth from their most recent earnings conference call:
Rocket Companies has $4.4 billion in cash that is “largely held for investments, dividends, and share buybacks,”
They use tools like buybacks to provide a hard bottom for the stock and absolutely punish shorts, which CEO Jay Farner has admitted he loves doing like some kind of hedgie-hating WSB Ape.
Rocket Companies offers a multi-year long growth story, so this is "not a stock you want to be short in," the CEO said.
"You might want to rethink your position if that's how you are playing it,"
Our boy Jay backed up this talk bigly. Preceding the Q1 earnings call, he managed to lock shorts into a prison of their own making; RKT announced a $1.11 SPECIAL dividend to shareholders that the shorts would be required to pay (don’t necessarily understand the details of how he pulled this off, but yes, it happened; the shit was straight out of the Succession playbook). RKT rocketed something like 20% that week, and Jay tap-danced on their corpses as he made the rounds on CNBC. Oh, speaking of CNBC, they love Jay and have him on their shows like clockwork after each ER since he’s been the CEO.
So now that we’ve shown you’d be plain foolish for not being long RKT, here’s how ya play it! We’re going with options here because, let’s be real, you don’t read The YEET for sound long-term investment strategy.
Playing it: Stay safe and long-dated blah blah blah, but I’ll be damned if the October 18c isn’t dripping in tantalizing Open Interest. If you need some more info, here’s YourBoyMilt with some charts and flow since he’s a one (technically two) trick pony:
RKT Flow Friday
🌊Flow 1k+: 84% 🐂
⌚️Expirations: 9/10, 12/17 🐂
🔨Strikes: 16.5, 24
📊Chart:
There you have it, a simple DD by a simple man. As always, remember risk management, so you don’t come crying to me and Milt if the RKT launch is delayed. See you all next week, Eagle out! CAWW. 🦅
💰 Pt. 3: 1k to 121k in a Month
How DJLowKey became a Legend of the fall
Contributor: DJLowKey
Editor’s Note from YourBoyMilt: What follows is the true story of one man, DJLowKey, who defeated the odds to become a hundred-thousand-aire with shockingly little options trading knowledge last year. His story shall ring through the halls of WSB lore for eternity and, more importantly, inspire you to hit it big while also keeping it extraordinarily simple.
1k to 121k in one month—no, that is not a typo.
Without further ado YEET Films Presents—Legend of The Fall: The DJLowKey Story…
There’s a supposed quote from Warren Buffett along the lines of “Time in the market is more important than timing the market”. Well, that’s all good for the long term investor, but not the type of degenerates like me who hang out on WSB. For us, I more often think of a quote from the poet Aubrey Graham - “I’m here for a good time, not a long time”.
So with that, please allow me to bless you with a short story about how you too can strike it rich in the options game. I didn’t use charts, or indicators, or really anything that would imply I had even a true understanding of how the stock market works. For myself—and hopefully some day you—it just took luck and a little bit of timing.
My story starts in the summer of 2019, that halcyon period before Covid landed upon our shores. I was listening to a podcast about Uber and thought “wow, this company sounds awful. And so does the whole ride share business for that matter...I wonder if I can make money from it?”. I asked my finance-bro friend about shorting stocks and realized that was much, much too complicated—shorting took substantial capital and knowledge of the inner-workings of the market…neither of which I had in abundance. In that fateful conversation he mentioned options trading as well, and only in the cautionary capacity that I should stay far, far away. So, of course, I did a 2 minute search and learned a bit about Calls and Puts; armed with this knowledge I figured I was ready to take the casino by storm. I had about three thousand dollars in my [redacted - no free ads for that piece of shit company. Also, Vlad sucks] online brokerage account where I had been buying penny stocks, hoping one would eventually hit.
For 5 long, grueling minutes I analyzed Uber and Lyft stocks as the targets for my puts; I chose Lyft because Uber at least had Uber Eats as an additional profit source. Lfyt was about $75 at the time and I thought to myself “hmmmm, this is much too high”. I chose an expiration date about a month out and a price target of $69 (niiiiiiccccee), and now they were officially the subject of my wrath as a microwaved short-seller. About a week later, Lyft starts to drop and my little chart turns green and the arrow goes up and to the right. I’m ecstatic because my theory worked, and I just turned $200 into a thousand—a “five-bagger” I was told. “So, this is how those Wall Street guys get so rich?” I thought. Easy. Of course, I then took those proceeds (and the rest of my account) and invested in the company that was behind MoviePass. Ooops.
Fast forward a few months. The online brokerage sends me a debit card, which is awesome…except I don’t have any money in that account. I decided that I’ll put $1500 into the account, just so I can actually use the card. I don’t think anything of it, and go about my life.
A few days later, I’m watching the news; the orange guy in charge is bragging about how the US military just killed a top guy in the Iranian government. This is bad. Being that I was now a seasoned investor of two months’ time, I sensed an opportunity; I thought back to those Lyft puts and figured I’d once again attempt to plunder treasure from tragedy. If we go to war with Iran, what would they attack? An airport? Our power grid? The Super Bowl? No, for some reason I thought the easiest target would be a cruise ship.
So I looked up the major cruise line companies. For some reason I found only 2 of the 3–Norwegian and Carnival—which I had heard of, and apparently I forgot about Royal Caribbean. Oh well..maybe I should’ve done more than 90 seconds of research. Anyways, I bought some long-dated puts on those companies, then I played the waiting game. This was late February 2020. A couple weeks later, rumors of some new disease from China start popping up and the rest is history…
Cruise lines are the first to shut down. My puts are going through the roof. By now, I’m on reddit daily trying to stay on top of the news. I also start checking out WSB obsessively, and I see people talking about more shut downs, potential market collapse, you know—economic Armageddon. I learn about ETFs that track the market, like SPY and then individual region focused ones like EWU and EWZ. I sell off some of my cruise line puts and buy airline puts. Then SPY puts. Then volatility calls. I keep flipping gains into more. I’m waking up in the middle of the night to check futures. It was wild. I set a target for myself of making 25 thousand. A couple days later, my account grows $25k in one day alone. A couple days later I hit $100k. Holy hell. I post on WSB about how I grew my account from $1k to $121k in a month. I think I’m the greatest trader who ever lived. This wasn’t luck, this was destined.
Of course, this was almost all luck. Luck and timing. That’s what makes great traders great (and, yeah. discipline I guess). But at least I was prepared to take advantage of the opportunity. I knew what PUTS were. I had money to play with in my account. Since you are reading The YEET, you are well ahead of where I was. You might not make 121x on your trades, but you can definitely make some good money if you keep at it. Hopefully, you won’t need another worldwide pandemic to do so.
🪙 Pt. 4: Tales from the Crypto
Contributor: sourmilk, capybara
Howdy ya’ll! This is Sourmilk and Capybara coming at you with more Crypto info for all you degenerates. The market was pretty wild this week and saw some tasty volatility (if you’re into that sort of thing).
On Monday, Bitcoin climbed to over 50k and FOMO was getting cranked up, but people that bought here likely weren’t too happy to see Bitcoin drop 9% a mere 3 days later. Those that were patient enjoyed some tasty dip entries for a number of Altcoins.
Let’s look at Bitcoin using the daily trendline:
Say it with us…. VOLATILITY. Feels good, right? As soon as you embrace volatility as something to take advantage of, rather than something to fear, the sooner you can start making money in this market. We charted this daily trendline wayyyy back in early August, but look how much Bitcoin plays with this trendline on a daily basis. Pretty cool, huh? This is where it gets tricky, we haven’t seen Bitcoin comfortably hold above the trendline for a few days so we think the volatility will continue into the next week.
We are going to keep this newsletter short and sweet, so let’s get to some Altcoin plays!
SUSHI (SushiSwap)
Sigh we haven't been able to look at Sushi for a while because it hurts to see it. We bought it at 6 dollars back in July but sold way too soon. However, it's too good of an Altcoin to ignore. What is Sushi? It's an Ethereum token that powers SushiSwap, a very popular Crypto trading platform. Sushi is one of our favorite Cryptos to trade, because when it runs, it runs. It went on a tear after Bitcoin bounced from its lows in July but has since pulled back and we think it could go on another run soon. Let's take a peek at the chart!
Entries: 11.20, 11, 10.66, 10.36, 9.86
Targets: 12.27, 12.57, 13.22, 14.02, 14.70, 16.17
SOL (Solana)
This has been a HOT Altcoin lately. It has generated a ton of buzz and has been ripping, up over 225% in 6 weeks. What is it? Solana is a non Ethereum blockchain that aims to improve transaction speeds as well as reduce fees, and it does both of those remarkably well. Bitcoin can handle about 7 transactions per second (TPS), and Ethereum can handle 30 TPS, Solana can currently handle 65,000 TPS! A transaction on the Bitcoin blockchain costs ~$3 today, and ~$8-40 on Ethereum, it costs $0.0001 to do a transaction on Solana. SOL has also seen a sharp rise in price due to its popular use for NFT's, which yours truly has begun experimenting in. Let's see the chart!
Entries: 93, 90, 87, 84.5, 81.3
Targets; 96, 98, the moon
LTC (LiteCoin)
LTC is one of the OG Altcoins, having launched back in 2011. LTC is a decentralized payment network that improves transaction speeds and has much lower fees when compared to Bitcoin and Ethereum. LTC is a play that I have been eyeing for a while and think it has a nice run coming up. Let’s see it!
Entries: 175, 173, 171, 168, 163
Targets: 180, 183, 191, 200, 204, 211, 220, 226
In closing, we maintain our Bullish outlook for the market, but we think that the volatility we saw the last week will continue into next week. Keep an eye out for Bitcoin dips to 47k-48k area as possible entries for Altcoin plays we listed today or in previous issues of the Yeet.
Good luck!
👀 Pt. 5: The Whale Watchlist Picks
Made possible with help from the @unusualwhales Alerts and Flow Tool. Sign up here!
Contributors/Tipsters: The Discord Homies, @MacPhuc (DKNG), @optionshunter_ (DIS), @stonksb (DKNG), @beancharcol (CLF)
This week was kinda tough, because it’s always hard to get a good gauge when the market is as green as it was on Monday. For that reason, I actually like the put plays more than the call plays for once—they each had questionable flow for such a monster day.
Whale WatchList:
📞Calls: CLF, DIS, DKNG
👿Puts: SBUX, ⭐SNAP
⭐️ = Milt’s Pick
🎲 Earnings BONUS: DOCU Puts
📞 Calls:
1. CLF Calls
Political bill passage that boosts profits? Check. Inarguably insane CEO who embraces meme status? Yup. Killed last earnings? Believe that. This is a great long term hold, with good recent news, a nice chart, and exquisite flow, here’s to hoping for a return to the crazy days of CLF pops.
🐳 CLF: Unusual Whales Alert
🌊 CLF: Flow reading (2,500+ Premium)
📈 CLF: Flow Chart (96% 🐂)
⌚️CLF: Expirations and Strike
⌚️ Expiration: 10/15 🔨 Strike: 20
📊 CLF: Chart (4 hr)
About to pop from this symmetrical triangle one way or another.
📝 CLF: Levels
Upside: 24.45, 25.13, 25.65, 26.2, 26.55
Downside: 23.37, 22.6, 21.25
2. DIS Calls
Mouse in the hooooousse. If you ask me, they’re trading at a discount for such a powerhouse and are always worth a long play. They’ve got a lot of things working for them for a nice little run soon—can we make DIS 200 a meme?
🐳 DIS: Unusual Whales Alert
None recent
🌊 DIS: Flow reading (25k+ Premium)
📈 DIS: Flow Chart (95% 🐂)
⌚️DIS: Expirations and Strike
⌚️ Expirations: 12/17 🔨 Strikes: 185
📊 DIS: Chart (4 hr)
Just kinda cruising in this forming wedge
📝 DIS: Levels
Upside: 181.2, 185.33, 191.9, 198.85
Downside: 176.22, 172.2, 170, 167
3. DKNG Calls
The original ape meme trying to bounce back from another post-ER fade. When will people learn that this stock is deeply undervalued? Hopefully this week.
🐳 DKNG: Unusual Whales Alert
🌊 DKNG: Flow reading (10k+ Premium)
📈 DKNG: Flow Chart (94% 🐂)
⌚️DKNG: Expirations and Strike
⌚️ Expirations: 9/3 🔨Strikes: 60
📊 DKNG: Chart (4 hr)
Bull flag off the trendline retest, yeee hawww if we break 60 and hold
📝 DKNG: Levels
Upside: 61.86, 62.85, 64.75
Downside: 58.27, 56.65, 54.67
👿 Puts:
4. SBUX Puts
As the warm summer months dwindle to a close, we will all spend absurd amounts of money on Pumpkin Spice Boolshit. However, it had divergent bearish flow and for that reason, I am out.
🐳 SBUX: Unusual Whales Alert
None recently
🌊 SBUX: Flow reading (2,500+ Premium)
📈 SBUX: Flow Chart (75% 🐻)
⌚️SBUX: Expirations and Strike
⌚️ Expiration: 9/17 🔨 Strike: 115, 120
📊 SBUX: Chart (4 hr)
If it doesn’t breakthrough here, looks like one more trip down
📝 SBUX: Levels
Upside: 115.7, 117.6, 119.25, 120.85
Downside: 113.92, 11.33, 109.45
5. ⭐️SNAP Puts
YES I SAID IT. Look, whenever SNAP doesn’t have like 1000% bullish flow my ears perk up. Just got swatted hard at 74, and should have waaaayyyy greener flow from this Friday. I like this play.
🐳 SNAP: Unusual Whales Alert
🌊 SNAP: Flow reading (5k+ Premium)
📈 SNAP: Flow Chart
⌚️SNAP: Expirations and Strikes
⌚️Expirations: 9/17 🔨Strikes: 69.5
📊 SNAP: Chart
📝 SNAP: Levels
Upside: 73.32, 75.33, 76.50, 78.3
Downside: 72.5, 71.55, 70.8
🎲 Earnings BONUS: DOCU Puts
IF I played earnings, I’d say that this is largely a gut play based on their quick rise the past two months and the fact that a Head and Shoulders wants to form oh so badly.
IF I played earnings, I’d say that they had a suspicious amount of Dark Pool sales on Friday. “Super Bearish” ones, at that.
IF I played earnings, I’d say to stay tuned to my twitter, because it’s on Thursday and the activity this week could change my opinion.
If.
🐳 DOCU: Unusual Whales Dark Pool
🌊 DOCU: Flow reading
📈 DOCU: Flow Chart
📊 DOCU: Chart
Pt. 6: Weather: SPY & QQQ Forecast by @daarkmaagician 🌦
Below is the chart & info for a SPY & QQQ forecast from @daarkmaagician, his DISCORD is the place to be (YEETers get two weeks free!). I’ve attached his accompanying text as an image with the photo below.
SPY/QQQ Charts Legend:
Solid Blue= ATH, Green= Dark Pool Buys, Red= Dark Pool Sells, Purple= Dark Pools, Orange= Supports/Resistances, Teal= 9ema
SPY FORECAST:
SPY CHARTS:
QQQ FORECAST:
QQQ CHARTS:
Spy Theory Update:
Make sure you follow @daarkmaagician to get updates on the indexes daily!
Pt. 7: TLDR & GOODBYE ✌️
TLDR:
Pt. 2: RKT DD
Pt. 3: 1k-121k Story
Pt. 4: Crypto DD
Pt. 5: Watchlist
📞Calls: CLF, DIS, DKNG
👿Puts: SBUX, ⭐SNAP
Pt. 6: Dark’s Watchlist
Goodbye and thanks for reading! Questions, scoops, comments @yourboymilt or /u/alldatdalton. See you next week! ✌