New Money Link Trade Alert:

Hey guys,

I’ve got some new trades for you this morning!

First, a new Core Portfolio position:

BUY RKT AT $23.20 OR LOWER.

SELL SHORT WFC AT $23.80 OR HIGHER.

And for an options play:

BUY RKT 12/18/20 $22 CALLS AT $4 OR LOWER.

BUY WFC 12/18/20 $25 PUTS AT $2.75 OR LOWER.

The COVID-19 economic disaster has, of course, named winners and losers. Wells Fargo stands out as one of the worst commercial banks through it all. It has done a poor job of managing risk and is in retreat as the economy rebounds. Rocket Group, who you may know through Rocket Mortgage, is just the opposite. It recently went public and is ever-increasingly gaining market share in online financial transactions, which includes (but isn’t limited to) home mortgages.

I expect the residential housing market to stay hot and RKT to benefit. And I expect WFC to stay under pressure as it unwinds the mess it has created.

That's all for today.

As always, you can track our open positions here.

LFG!

Jeff Zananiri

Joy of the Trade