Takeaway

The presenter argues that month-end illiquidity is creating trading opportunities. After taking profits on precious metals miners last week, the speaker is now looking for pullbacks to re-enter long positions. He is also looking to add to airline stocks LUV and JBLU which have experienced extended pullbacks.

What the presenter said

• The speaker notes that August 31st is likely the most illiquid week of the year for the market. (00:07)
• These month-end flows create "pockets" or opportunities for traders. (00:13)
• Metals that were higher all month have started to pull back as traders cashed in profits. (00:20)
• A "problem in Iran" is causing a reaction in oil, creating opportunities there. (00:25)
• He is looking to add to positions in Southwest Airlines (LUV) due to an extended pullback. (00:41)
• The presenter is also looking to add to JetBlue (JBLU). (00:44)
• Positions in precious metals like Gold and Silver were cashed out last week, specifically in miners Pan American Silver (PAAS), Coeur d'Alene (CDE), and Hecla (HL). (00:49, 00:57)
• The speaker's general strategy is to go "all in" at the beginning of the month and cash out towards the end, then look for re-entry on pullbacks. (01:15)

Trade ideas

• Instrument: Southwest Airlines (LUV)

  • Direction: Long
  • Entry/Target/Stop: Unspecified
  • Horizon: Short-term
  • Conviction: Medium
  • Thesis: The presenter is looking to add to LUV on its extended pullback, seeing an opportunity from month-end flows.

• Instrument: JetBlue (JBLU)

  • Direction: Long
  • Entry/Target/Stop: Unspecified
  • Horizon: Short-term
  • Conviction: Medium
  • Thesis: Similar to LUV, the speaker is looking to add to JBLU due to recent pullbacks.

• Instrument: Precious Metals (Gold, Silver, PAAS, CDE, HL)

  • Direction: Long
  • Entry/Target/Stop: Unspecified
  • Horizon: Short-term
  • Conviction: Medium
  • Thesis: After cashing out of precious metals last week following a strong run, the speaker is now looking for pullbacks to re-enter positions.