Okay folks, so we've got a lot to talk about. Unfortunately, it is going to have to be quite violent. We have to talk about what the heck is going on with our clove play and why it's exploding. We gotta talk about Amc.

and we gotta talk about why Arkan Vest manager Kathy Wood is now saying that the rotation back to growth is probably close at hand and whether I agree with that or not and what her reasoning is and the only thing that I ask of you in return is that you hit that ravishing like button And also don't forget to subscribe either. Okay, so to start, our Clove play just completely exploded today, up over 100 percent at highs. Just insane. Obviously, it's up like 400 in the last week or so, and the reason that Clove has gone up so much more violently than we expected was thanks to a combination of likely not just really high short interest, but also likely naked short selling as well as insane retail inflows today.

But let's be real, Clove has been one of the most controversial picks on this channel because we started liking it after the beginning of a short and distort campaign where a short seller hit it with massive allegations that beat it down to what I saw as a really good price. But then all of a sudden the timely inflation trade started and it sold off even more. And then it got even more controversial because it was one of the most heavily shorted stocks in the stock market at that time. I felt it was a very, very, strong dip buy based on the fundamentals and based on the fact that it had been pushed down so far below what I saw as the fundamental value based on the case that I laid out at the time.

But despite that, even at Lowe's we reiterated our conviction on this play. And in a March 7th video, we actually explained what's going on and it was pretty much to a T. We talked about how short sellers were playing off the cycle, making tons and tons of money. On the downside and how you should read this article called why your stock is always red That explains how big money uses the media and the stock's price in order to manipulate you into selling your stock to get the price down that way.

On one side, short sellers can make tons of money on the way down and then on the other side when they want to go along. they can buy it at obviously cheap prices. Now of course, retail traders see selling off as indication that it's a bad stock and that you should wait until it breaks out into new highs. But obviously, you can't think like the average retail trader, because again, retail traders lose money dramatically.

ninety percent of retail traders lose money. And because the statistics are very clear in terms of how to get retail traders to sell. hey, it's very, very easy to manipulate stocks with a lot of retail traders to go down and then to go back up then over the upcoming weeks and months. We said, hey, you're gonna have a ton of short squeezes.

Why? Because short sellers are trying to get this down to zero, but there's obvious fundamental value here, so it can't go to zero right now. And the more pressure they apply to push this down, the more likely they're going to get massive squeezes. And what have we seen? We've seen many, many squeezes and the most recent time we talked about this was just in yesterday's video and what happened today. We got the mother of all squeezes for Clove.

Congratulations if you played this play. This was a play that took a lot of conviction and a lot of stomach. Am I saying that I'm a genius because I identified a stock that got hit with a Bs Short and Distort campaign and had the data pointing to its eventual squeeze. Am I saying I'm a genius because I urge patience to wait out for clove? Absolutely not.

But what I am saying is that being aware of the fundamental value of something, being aware of what's true and what's not when shorts are attacking something, and then being aware of how overshoring something can cause this massive ricocheting is incredibly important. Putting in the work ahead of time not only allows you to be more patient in your conviction and more confident in it, but the harder you work the luckier you get. How many times do we have to hear on every single play that works? Oh, you know that was lucky. that was a meme rally.

You know that was just. you know, the easy money policies. Then when stocks get beat down, it's not because short sellers spread mass hysteria and mass short and distort campaigns, it's because, uh, you didn't do any Dd, You just bought something blindly. And the reason it squeezed today is because of a squeeze attack.

But the reason that it got overly sold before was because of a hedge fund short attack. The market's mechanisms in the short run are irrational. there's no doubt about it, but at the end of the day, for the conviction traders here, it's all about doing the work to get the fundamentals out of it, to get an actual price target, and then waiting to hit that price target Once you fit it, hey, sell out and then wait for it to get discounted again because the market will always be irrational again. If you caught this today, you should feel damn proud.

I don't want to hear people saying oh my god, this is a meme rally. It's fine to feel bad about losing money when hedge funds manipulate stocks to go down. but you're not allowed to feel good when stocks go up because of reverse manipulation. But of course, trading is a business and we can't be too emotional with this.

And from day one I've said that my price target on Clove is twenty dollars. and today I told Zip Trader you for the buy and hold members who are long-term conviction traders in this that I see this as either a take profit play or a partial trailing stop-loss play based on your own risk management tan based on your own price. Target for it. In plain English, I think this is worth twenty dollars.

You can deal with that information what you will. I would recommend, especially if you bought it in the sixes and sevens. Take some profits off the table, if not everything. I understand how squeezes work.

These can go to insane levels. They can also drop very dramatically and very quickly if it squeezes more. Hey, if you want to take a momentum trade, go ahead. But oftentimes what a lot of people end up doing is they just end up holding back until all the euphoria is gone and then they lose all their gains.

Total congratulations on this play. This was excellent. Excellent job for everybody who caught this in terms of morning catalyst plays from the briefings, we do have a strong focus on diversification. Obviously, Clove was a play that we had on the briefing both this morning and yesterday as well as reiterated for months.

But outside of the luck that we had today with it and make no mistake, we did have luck. But the other play that I do want to talk about is next next. Had shown strength yesterday and this morning and it received a price upgrade from a prominent analyst which made me brief on it. In the pre-market analyst, upgrades on price targets can take some time to circulate, and oftentimes once it circulates at open or after open, I should say you could see some serious trading opportunities.

Pretty solid morning. run. Write it open. My favorite runs are the ones that run it open Obviously workhorse and leads have been good to us over the last few days as well.

Leads was really, really strong yesterday. I should have talked a little bit more about it yesterday. So much training is just being aware of trends and being ready to milk them. If they do run Wendy's I thought I was going to see more consistent post open rallying on retail traders pouring in it because it got a lot of attention in the pre-market but all of a sudden it just sold off into Open and it ran up a little bit.

but it wasn't super exciting. Okay, enough with the briefing plays. let's move on to Amc Amc. So it's basically been stagnating today.

Some strength, it open, and then some weakness. Keep in mind that this is a battle of time, not just price. there's a lot of short sellers that sold shares short of Amc in the 20s, the 30s, the 40s, and they're sitting on paper losses. and they're sitting on tons of margin fees every single day they have share short because they borrowed those shares.

and the longer that those short sellers are forced to stay in the position, the worse it gets for them and the less sense it makes for them. And even if Amc isn't rallying up, keeping prices at these high levels causes a very, very difficult issue for them because in order to get out, they have to lock in losses and they also have to rally up the price by re-buying a ton of shares. But they also have ticking time bombs that they want to get rid of. They want to close those short positions and they want this to go down as fast as possible.

Keep in mind, this is still a war of attrition and we'll see where it goes. Okay, Bitcoin and Bitcoin miners. not so hot for the crypto market, huh? We are still in a bear market for Bitcoin. The latest catalyst appears to be the fact that Bitcoin was recovered from the Colonial Pipeline ransom payment.

Apparently the Fbi was able to access the private key or private password of one of the hackers bitcoin wallets. It's hard to say if this is bad news because people are worried about the security of Bitcoin, or because people are reminded that some ransom was paid out in Bitcoin. Probably a combination of both. But remember, at the end of the day, less than one percent of Bitcoin's transactions are illegal activity and the Us dollar is still the preferred currency of most criminals in the world.

But hey, during any fud market condition for any asset class, negative, catalysts are gonna have a lot more weight. But hey, you know what? That's okay. I don't think that anyone who seriously believes in Bitcoin is upset by these catalysts. A lot of fluctuations in Bitcoin are due more to the over leveraging of money that cycles in and out, and not due to any one particular fundamental reason.

Honestly, I haven't heard any new arguments against Bitcoin that we haven't heard for years. so whatever. Next, Kathy Wood, She predicted that her growth strategies would have a cool off period. which makes sense since they were up so much last year.

And she said while it's cooling off that hey, this is good. This doesn't mean that there's going to be a massive bear market. This means that growth is going to cool off and the rest of the market is going to broaden out. And that's actually exactly what has happened so far.

And now she's making the case that the market has already broadened out largely and you're going to start seeing Innovative Tech start receiving more money. And we'll let her talk. as we've been saying for quite some time that the Bull Market is alive and well and it is broadening towards value. uh, and cyclical sectors.

and or maybe I should say it has broadened. This has happened and we thought it would and we thought it would hurt innovation-oriented strategies. It has done that as well. Now, if we're right, and everything I just um, suggested based on the evidence we're seeing occurs, then these cyclical sectors are setting up for a fall and that should accrue to the benefit of uh, innovation.

Why is that? Well, when Sickle When we get into a recovery, the early stages of a recovery are when the cyclicals see a burst in revenues and earnings and they give more more. Growth-oriented and innovation-oriented stocks are run for their money. These growth rates are are competitive. They're not sustainable, but at least they're competitive in the short term and very much of the market is short-term oriented.

Interesting. So she's basically saying that cyclical stocks do very well in the beginning of recovery periods because their growth numbers have a lot to bounce back from. obviously going from a period of low economic activity to a period of healthy economic activity such as you, your pandemic to no pandemic. Well, obviously, the growth rates are going to be substantially higher, but eventually you get back to the industry average.

So her argument seems to be that when you get into a recovery, money chases those recovery stocks because growth rates are going up and they're proving themselves as you leave that pandemic or whatever economic problem you have. And my assumption is that she's insinuating that after that period, after that recovery capital that once returns in the stock market then has to find new companies that are in new industries that have higher growth rates. Because you can't keep over buying companies that have stagnating growth rates, you have to find companies that have higher growth rates. and after a recovery has ended and all the other industries have recovered back to their industry average, you have to find new emerging industries that have higher potential growth rates.

and her insinuation would be that that is innovative tech in her funds. One criticism that I would have here is certainly there might be some wishful thinking in terms of Time Horizon. I am somebody who is a very, very strong believer in a lot of the emerging technologies that she's talked about. I think that's something that's very important here is that hey, you can be right on the stock and the trend of technologies, but you could be also wrong on the Time Horizon.

One of the biggest threats in terms of Time Horizon that can make this happen sooner or later is that inflation concern. if inflation really threatens the Fed's hand. and they already have some speculation in terms of the campaign to taper asset purchases and maybe down the line, maybe raise interest rates. And the fact of the matter is that the bigger issue inflation is, well, the longer that Time Horizon may be, the more expensive it is to take on risk, the less people are going to want to buy into some of these innovative strategies.

But I think that her perspective is very, very interesting here. She talks about how consumer spending is changing and that post pandemic spending habits are going to dramatically be different and rush towards innovative industries, and thus capital might follow it. She also talks about how many crucial large companies are focusing so much on short-term growth that they're not investing in themselves and they're not innovating. They may perform better right now on paper, but over the long run they may not.

They may not be prepared for all the different changes, so obviously some pretty damn interesting stuff here and we'll see what happens. anyways. Looks that caps off the video. If you have any questions, feel free to reach out to us below or join us on ziptrader circle.

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Well, Weeble is also linked below and that pretty much caps off the video. Have a great week and I'll see you in the next one.