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📉 From Buy The Dip To Sell The Rip
There's a new dominant strategy on the Street. Plus, why social media stocks took off today.
Brooks Dyroff
April 18, 2024
Happy Thursday, Zingernation! Jack be nimble, Jack be quick, Jack just sold some more stocks before the downtick. Trading success takes a lot of skills, but one of the most important is adaptability.
Just a couple of weeks ago, the “buy the dip” strategy seemed to be working at a 90%+ hit rate. Now, the dominant market strategy has been replaced by its polar opposite: “sell the dip.”
Today was another day of rip selling, with the S&P opening green, moving into the red, then going green again, before ultimately closing down and falling more than 1% from its intraday highs.
Today’s Price Action:
$SPY: -.21%
$QQQ: -.57%
$DIA: +.10%
Plus, check out the cannabis company that pioneered rapid-onset gummies.
And, did someone forward you this email? Click here to subscribe to this Benzinga newsletter and more.
TODAY’S MOST VOLATILE STOCKS
TODAY’S TOP STORY
Briefly: A high-profile bill that aims to dismantle TikTok's U.S. operations is sending social media stocks skyward.
So Basically: The bill was already approved by the U.S. House last month. Since then, it has reportedly been fast-tracked through Congress and lumped into an aid package bill for Ukraine, Israel and Taiwan.
So Then: House representatives are scheduled to vote on the package this Saturday. If approved, the legislation would force TikTok's Chinese parent company ByteDance to divest and sell its U.S. operations or face a shutdown in U.S. soil, where 170 million people are active users.
So What? The bill has been highly criticized by influencers and small business owners who depend on the platform to make their living, and TikTok CEO Shou Zi Chew insists that a ban could erase billions of dollars from the U.S. economy and potentially put 300,000 jobs at risk.
But Still: Some CEOs may be on board with the bill — namely, Meta’s Mark Zuckerberg and Snap’s Evan Spiegel, both of whom saw their shares rise on the news.
PRESENTED BY MOOD
Most people prefer to smoke cannabis but that isn’t an option if you’re at work or in public.
That’s why we were so excited when we found out about Mood’s new Rapid Onset THC Gummies. They can take effect in as little as 5 minutes without the need for a lighter, lingering smells or any coughing.
Nobody will ever know you’re enjoying some THC.
We recommend you try them out because they offer a 100% money-back guarantee. And for a limited time, you can receive 20% off with code FIRST20.
FIVE MOVERS
Truth Social shares moved higher in today’s session, as the Trump-linked stock became a rare beneficiary of the “buy the dip” strategy.
Bitcoin moved higher as traders appeared to take bullish positions on the biggest crypto coin ahead of the planned halving on Saturday.
Novo Nordisk shares moved lower today after the pharmaceutical company announced a new acquisition of heart drug company Cardior.
Rivian shares moved slightly higher in today’s session following some bullish coverage from an analyst at Needham.
Lithium America stock got crushed today after the lithium mining company announced a $275 million offering at $5 a share.
ONE TRADE IDEA FOR TOMORROW
Briefly: SkyBridge Capital's Anthony Scaramucci believes the upcoming Bitcoin halving could put the world’s largest crypto on a path toward $200,000 per coin.
What To Know: Thursday on CNBC’s Squawk Box, the Mooch suggested that Bitcoin could soon break through new highs. He expects the crypto to trend higher over the next 12 months: “Long term, with the halving coming this week … I think this thing trades to $170,000, possibly to $200,000.”
What Else: Bitcoin miners receive a reward for successfully mining transactions. The amount of rewards miners receive is set to be cut in half in the coming days. Crypto markets have historically rallied in the months following a halving event.
Why It Matters: Scaramucci told CNBC the current downside risk in Bitcoin is about 10% to 15%, given geopolitical uncertainty, but the upside is significantly higher, citing heavy demand due to recently approved Bitcoin ETFs and new players coming into the space.
Click here to read more.
PRESENTED BY MOOD
Most people prefer to smoke cannabis but that isn’t an option if you’re at work or in public.
That’s why we were so excited when we found out about Mood’s new Rapid Onset THC Gummies. They can take effect in as little as 5 minutes without the need for a lighter, lingering smells or any coughing.
Nobody will ever know you’re enjoying some THC.
We recommend you try them out because they offer a 100% money-back guarantee. And for a limited time, you can receive 20% off with code FIRST20.