🧪 I'm Shorting This Stock

Good Morning!

Wall Street's off to a rocky start with underwhelming earnings from Alphabet and Tesla, while Bitcoin remains rock solid above $68,000 despite a tech selloff. We’ve got the lowdown on Wiz turning down Google’s $23 billion offer and Spotify’s impressive 12% stock surge. Plus, I’m sharing my exact 4-step formula for spotting crypto reversals and breaking down my short play on $PLMR, driven by insider activity and technical analysis.

Let’s get into it 👇

🌡 Market Temperature Check

❓ What’s Moving Markets This Week?
Wall Street is poised for a downbeat open Wednesday as second-quarter earnings from Alphabet and Tesla underwhelm. Meanwhile, the U.S. political climate remains unstable, and European earnings season heats up.

💪 Bitcoin Steady at Six-Week High as Tech Selloff Rocks Market
Bitcoin held firm above $68,000, unshaken by a tech stock selloff. Investors maintained their bullish stance amid political developments boosting the crypto space.

🤯 Google’s Record $23B Bid for Wiz Gets Rejected, Wiz Will Pursue IPO
Cybersecurity startup Wiz declined Google's $23 billion acquisition offer, opting to go public via an IPO instead. This move shut down what would have been Google's largest deal ever. Would you turn down $23B?

🎵 Spotify Stock Turns Up by 12% as Traders Cheer Record Profits After Price Hikes
Spotify stock soared 12% Tuesday after the music streamer reported record quarterly profits and a 20% revenue increase. With shares up 75% this year, Spotify's premium price hike strategy is paying off amid stiff competition.

👀 How I Find Reversals (Never Guess Again)
This is my exact 4 step formula to find reversals for crypto. It has proven to be profitable over the years so I thought I’d share it with ya!

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📈 What I’m Trading

My Latest $PLMR Short

The Play

Let's break down my trade on $PLMR, where I entered at a short position. Here’s the setup:

• Entry: Short $PLMR at $92.08

The Catalyst

Recently, there’s been some interesting insider activity at Palomar Holdings Inc. On July 17, 2024, Jon Christianson, the company’s President, sold 2,000 shares at $91.35 each. This sale isn't a one-off; over the past year, Christianson has sold 30,733 shares and hasn’t bought any. The overall trend among insiders is also telling, with 49 sales and just 2 buys. Such a pattern often hints that those closest to the company might not be overly confident about its future...

My Take

So, why is this a good short? Let's dig into the details.

Looking at the chart, $PLMR has had a rocky road. After peaking near $100, it’s hit some resistance and hasn’t been able to push higher. The current price around $91.41 looks like it’s struggling to hold on after a recent climb. Combine this with the insider selling spree, and it seems the insiders at the top might be seeing some clouds on the horizon.

The technicals back this up. The volume doesn’t show strong buying interest, and the stock’s recent movements suggest it could be headed lower. A short at $92.08 gives a nice balance of risk and reward.

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✍ TL;DR

• Market Overview:

  • Wall Street opens down due to weak earnings from Alphabet and Tesla.

  • U.S. political instability and European earnings in focus.

  • Bitcoin remains steady above $68,000 despite the tech selloff.

• Trading Spotlight: Short position on $PLMR driven by significant insider selling and weak technical indicators.

Stay ahead, stay informed, and most importantly, stay profitable.

‘til next time,

TradingLab