The Death of the SPAC


Here’s the secret of trading…

The fundamentals rarely change.

The techniques that allowed someone to build a fortune even 50 years ago still work today.

Why do you think someone like Warren Buffett is still making headlines?

One of the big things that was supposed to change everything during the pandemic were SPAC’s – Special Purpose Acquisition Companies.

Or, as many call them, blank check companies.

These were going wild during the pandemic trading boom.

But they’ve come and gone.

At least eight SPACs have sought bankruptcy protection since June 2022.

Other SPACs are shifting to smaller stock exchanges in order to keep their deals going.

That said, there was one exception you might have noticed earlier this week.

Hammerhead Energy (HHRS) was up by as much as 60% on the first day after it combined with the SPAC Decarbonization Plus Acquisition Corporation IV. (Have to say “decarbonization” is a nice buzzword to add to the business description.)

However, it fell by 24.72% yesterday.

It still says something that an energy stock drew this kind of volatility. It’s what everyone is talking about, as rising demand in China may cause havoc with the world natural gas market.

Energy is one of those sectors that remains important no matter what is happening.

In a world where borders, resources, and geopolitical ties are becoming increasingly important…

And the promise of globalization seems to be fading…

Sometimes it can be hard to cut out all the noise and remember where the action is.

The answer is that it will be where it always was – centered on those goods that will always be necessary to get an economy moving.

Keep Moving,

P.S. I’ve found one surprise energy pick that I think is going to be absolutely critical over the next year.

Click here to get the full details.


 

GET IT DONE

Mr. X’s motto – and since the beginning of Rogue Investing Daily…

He’s been giving picks with returns of 390% in under a year…
442% in less than a month…
and 1,154% in 16 months…
and urging subscribers to hold back from any new crypto investments right before the crypto bear market.

COACH’S CORNER

“It was an amazingly profitable day for us in the Trade Command room. If you weren’t there – I hope you at least got your share of what the market had to offer.”

“We closed out several credit spreads for between 50-90%, with some nice quick intra-day wins on SPX calls and puts sprinkled in, handing us a few returns in the 20-30% range.”

“Exciting stuff for sure, but let’s get to the technicals – SPX spent the whole day inching downwards, but the Russell 2000 (RUT) and NASDAQ (NDQ) held their ground until the closing minutes of the day. My indicators suggest that SPX is in for more downside tomorrow.”

“Take a quick look at the SPX daily chart above.”

“Notice the grey, down-trending volatility band with only the meager resistance at $3950.00 to prop it up. If we continue down, the options market’s predicted move could put us at $3812 by Wednesday. If you’re positioned correctly, that could mean some fast profits.”

“The $3812 is the last real line of defense before that massive leg down. If and when we get there isn’t knowable, but probable. And probabilities are what trading is all about.”

“When you’re trading bullishly, remember that you’re moving counter-trend. Pay close attention to your stop losses.”

“If you decide to short the S&P 500, remember there are multiple ways to do it. If SPX is too pricey for you, consider XSP, SPY, or SPXS.  Keep these tickers on the watchlist for some potential short trading this week.”

Cheers,
Chris Hood

 

 


WORD ON THE STREET 

AMC Earnings Beat, GM Layoffs, Mixed News On TGT

  • The Show Must Go On – AMC reported more revenue than expected and posted a smaller loss than expected. CEO Adam Aron said 2022 full-year results were the best since the pandemic. “In stark contrast to others in our industry who have faltered,” he said, “AMC Entertainment has increased our liquidity profile and strengthened our balance sheet through equity capital raising, debt refinancing, debt exchanges and purchases.” Of course, for those simply holding shares hoping for a short squeeze, “increasing our liquidity profile” is not what they want to hear.
  • Target Posts Surprise Earnings Beat – Target (TGT) leaned into discount prices and it paid off. Revenue and earnings were both better than expected. CEO Brian Cornell tried to dampen long-term expectations, saying that “we’re planning out business cautiously in the near term to ensure we remain agile and responsive to the current operating environment.”

The CEO added that it continues to be a “very challenging environment”
  • Norwegian Cruise Line Down Big – So much for the post-pandemic travel boom. Norwegian Cruise Line posted wider losses than analysts were anticipating. It missed earnings per share expectations by more than 30 cents. NCLH was down more than 10%, with investors gloomy about a pessimistic full-year outlook.

  • 500 Losing Their Jobs At General Motors – GM is joining the seemingly endless parade of companies cutting their workforce. About 500 people are reportedly being laid off. This is only about a month after GM told investors that it was not planning any job cuts. Plans change.



HOT SPOTS: What’s Going on in Geopolitics

  • FBI Says China Getting In The Way On China Origins Probe – Well, it’s officially not a conspiracy theory anymore. FBI Director Chris Wray told Fox news that “the FBI for quite some time now assessed that origins of the pandemic are most likely a potential lab incident in Wuhan.” Furthermore, the FBI Director said the Chinese government “has been doing its best to try to thwart and obfuscate the work here.” I feel like the media owes us an apology.
  • Chinese Economy Booming – The National Bureau of Statistics reported that China’s Purchasing Mangers Index (PMI) surpassed expectations and suggests that the country is undergoing an economic expansion. The figure of 52.6 in February is the highest reading since April 2012.

  • Zelenskyy Warns Of Tough Conditions In Bakhmut – Russia is making progress in its seemingly endless battle to encircle the city of Bakhmut. Ukrainian president Volodymyr Zelenskyy said “the enemy is constantly destroying everything that can be used to protect our positions.” The leader of the Donetsk People’s Republic, pro-Russian separatist Denis Pushlin, said almost all roads into the city were under the fire control of Russian forces.



CUTTING EDGE: Whats Happening In Tech

  • Rivian Misses On Earnings – RIVN was supposed to be the next big thing in EVs, but the results aren’t quite matching the hype. RIVN missed on revenue, though its adjusted loss per share was significantly less than what analysts feared. RIVN was down more than 10% in after-hours trading.
  • China Warns Musk On COVID-19 Tweets – It’s becoming more acceptable to discuss the possibility COVID-19 came from a Chinese lab – but not to the Chinese government. When Musk alluded to the possibility on Twitter, the state-owned Global Times warned the TecnoKing against “breaking the pot of China,” an expression that means, roughly, “biting the hand that feeds you.” It may be increasingly tough to do business in both China and the United States.

  • Novavax Facing The End? – NVAX was one of the powerhouse stocks on the pandemic era. However, the company is facing hard times… perhaps even the End Times. The company posted weaker than expected earnings and revenue. New CEO John Jacobs said that the company should be in a “strong position” soon, but warned a great deal depends on what the FDA decides on vaccinations, as the agency will require companies to produce products that match new strains. NVAX was down by more than 26% in after-hours trading after it warned of “significant uncertainty.”

No longer a booming business

“There has been a massive spike in the volume of 0 DTE options traded.”

“And the most likely reason is the number of retail traders in the market. These aren’t a strategy that institutional traders typically use.”

Retail traders are taking up these kinds of moves… but it’s important to know what works before going all on. Chris Hood has your back with some rules to help you make these kinds of trades work for you.


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The information in this email is intended for informational purposes only and does not guarantee specific results as there is a high degree of risk involved with trading. Also, our traders are real traders and may have financial interests in the companies discussed. Please see our Terms and Conditions for more information

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