Wealth Builders Recap - May 3, 2025

Meeting Summary - MikePairMoney and Biddles Investment Group - May 3, 2025

Quick Recap

The team discussed current market trends, analyzing various indices and sectors and their potential impact on stock performance. They reviewed the performance of specific companies and sectors, evaluated investment strategies, and identified potential risks. Additional discussions included developments in autonomous vehicles, individual stock movements, and members' personal trading experiences and strategies.

Next Steps

All Members

• Monitor Palantir’s earnings announcement (Monday after market close) for potential trading opportunities

• Observe market reactions to upcoming economic data releases, including U.S. International Trade in Goods, the Federal Reserve meeting, and Wholesale Trade figures

Assigned Tasks

• Sell Palantir December 2026 call option ($25 strike) to secure profits before earnings

• Complete Q1 evaluation and share insights with the team

• Monitor WOLF stock performance following the May 30 CFO resignation announcement

• Track Tesla’s future sales for brand perception and sentiment analysis

• Monitor FAA progress for Archer and Joby, and developments in partnerships with Delta and Uber

• Follow updates on Wolf’s semiconductor plant expansion in North Carolina for potential investment opportunities

• Evaluate a potential inverse trade on Microsoft at the $14.50 resistance level

• Analyze entry points for Google based on gap levels

• Place a $130 limit order on VST following its recent gap-up

• Consider exiting the eBay position while in profit due to uncertain setup

• Monitor H&R Block for a breakout above the $65 level

• Place an order for Wolf options – $3.85 for a $1 strike call expiring December 17, 2027

• Track Kava’s performance after adding four additional shares

• Watch Crocs for a breakout above the $103 shelf level

• Review Southwest Airlines stock for potential trade setups

• Continue holding WolfSpeed and BTBT for long-term strategy

• Evaluate WolfSpeed based on recent trading volume and short interest data

• Post Southwest Airlines stock details in the group chat for team review

Discussion Summaries

Stock Market Trends and Index Analysis

The team analyzed the Dow, Nasdaq, Russell, and S&P 500. The Dow experienced a slight pullback from a double top and was positioned near a breakout level. The Nasdaq showed signs of forming a handle and a modest breakout. The Russell was trading above the 50-day but below the 200-day moving average, while the S&P mirrored this structure. Discussion extended to the bond market, which was showing decoupling from the equity markets. The U.S. dollar remained range-bound, and gold had declined as equities rose. The group agreed to continue monitoring these trends and to adjust their strategies accordingly.

Trade Policy and Economic Impacts

The team discussed the potential market implications of an upcoming trade deal with China. The unpredictable nature of market sentiment was acknowledged, with outcomes possibly swinging significantly in either direction. Additional highlights included a GDP contraction and the addition of 177,000 jobs in April. The Federal Reserve’s cautious stance, with a potential rate cut in June, was also discussed. The conversation concluded with an acknowledgment of possible market pivot points in the near future.

Sector and Stock Performance

The V-shaped recovery in materials, communications, and financials was highlighted. Individual stocks discussed included Apple, Amazon, Google, Meta, Microsoft, Netflix, Nvidia, Tesla, and Broadcom. It was noted that stocks like Meta and Google had comparatively lower price-to-earnings ratios, signaling possible undervaluation. The use of inverse ETFs was suggested as a hedging strategy for specific positions like Microsoft.

Palantir Investment Strategy

Members discussed Palantir ahead of its earnings report, considering options strategies for downside protection or profit-taking. While some advocated for holding based on the company’s long-term vision, the short-term chart suggested potential weakness. A consensus was reached to sell certain options ahead of the report.

Emerging Stock Opportunities

Stocks such as VST, CAVA, and Roblox were evaluated for their recent momentum. Despite public scrutiny of leadership, Tesla’s resilience was noted. Archer and Wolf were also recognized for their growth potential. The team examined the semiconductor sector, especially technologies like Gallium Carbide. CFO transitions were discussed as critical market-moving events.

Archer Aviation Investment Discussion

A potential investment in Archer Aviation was discussed, with options strategies explored for generating income. Opinions diverged on autonomous vehicles, with some expressing skepticism and others viewing them as inevitable advancements. A documentary series was recommended for further insight into the relationship between emerging technology and political influence.

Portfolio Reviews and Holding Patterns

Stocks reviewed included Roblox, Sprouts Farmers Market, Kava, Duolingo, Walmart, and eBay. Roblox was trending upward, Sprouts showed signs of recovery, and Kava formed a double bottom. Duolingo reported strong earnings. The importance of closing prices and breakout levels was emphasized for Walmart and eBay.

Member Strategies and Experience Sharing

Participants shared their trading philosophies and strategies. These included buying at support, selling at resistance, and scaling into positions. One member described a "blue sky" investing approach—targeting stocks with high growth potential. Stocks like Nvidia, Apple, and BigBear.ai were cited as current focal points.

Trading Discipline and Team Insights

The meeting ended with a discussion on trading discipline and improvement. Members shared lessons from past setbacks and successes, with an emphasis on patience, chart awareness, and setting limit orders. Stocks like Palantir, Dollar Tree, and Southwest Airlines were discussed for upcoming opportunities. Plans were set for the next meeting.