Three SEPARATE Wall Street Insiders just put over $30 Million into this OIL AND GAS stock… is it about to pop?
Monday, October 6th
“Modern man is in a permanent state of tension. He lives on the edge of the abyss.”
– Carl Jung
Major Market Events
- OpenAI–AMD Alliance Sends Shockwaves Through AI Sector — OpenAI announced a major partnership with AMD, intensifying competition with Nvidia and igniting a rally in semiconductor stocks
- Elon Musk Bets Billions on AI Data Centers — Musk is investing heavily in Memphis-based “Colossus” data centers to power his xAI initiative, underscoring the growing infrastructure race behind artificial intelligence
- Tesla Jumps on Strong Q3 Sales — Tesla shares popped as the company reported robust third-quarter sales ahead of an expiring U.S. EV tax credit
🤔 My Thoughts
Pfizer’s “Real Money” Signal
Why We’re Watching This Beaten Down Pharma Stock
On Friday’s Profit Panel, I flagged a simple, important catalyst in Pfizer (PFE): a multi-billion-dollar government mRNA deal.
This is the kind of real-world money that can wake up a tired stock. In the words of Jeff Foxworthy (or was it Bill Engvall?), “Here’s your sign.”
We also noted that PFE has been beaten down from the lofty heights it traded at in the peak of the pandemic back in 2021, and may have room to run if buyers stick around.
For everyday traders who don’t want to gamble on a headline pop, here’s how we’d handle it:
First, Separate The “Why” From The “When”
- Why watch it: A big, concrete government contract is different from rumor. It often pulls in new buyers, improves visibility on future revenue, and can change the tone around a stock that’s been lagging.
- When to act: We still avoid chasing the first spike. We prefer a daily close that confirms strength (for example, reclaiming and holding above obvious lines like the 20-day or 50-day moving averages).
A Simple, Copyable Plan
Step 1: Mark the lines.
Pull up PFE and add the 20-day and 50-day moving averages. Write down today’s levels. This gives you clear “above/below” markers.
Step 2: Wait for proof by the close.
If PFE closes above your chosen line (say, the 50-day) and holds it the next day, that’s proof buyers are doing more than celebrating a headline.
Step 3: Pick the right tool for your comfort.
- Shares (simplest): Start small. If the next day holds, you can add. If the close slips back below your line, trim or exit — no hoping for a turnaround.
- Defined-risk call spread: Buy a call and sell a higher-strike call with the same expiration. That caps your upside and your risk. This is less risky than than buying a naked call.
Step 4: Manage with simple rules.
- Size small. Think “test position,” not “bet the farm.”
- Take partial wins into strength. No one ever went broke taking a sensible win.
- Listen for follow-through. If the story is real, you’ll hear it on earnings calls: margins, guidance, and pipeline updates. That’s where “idea” turns into “evidence.”
What Would Change Our Mind?
If PFE can’t hold closes above those key levels, or if management later walks back impact on numbers, we step aside. Watching is a decision. Cash is a position.
Bottom line
The government partnership catalyst gives us a reason to watch PFE. But our entry still waits for proof. With a beaten-down chart and a real contract in the headline, the setup can be attractive — if buyers confirm it with higher highs and higher lows.
Use small size, prefer defined risk if you use options, and let management’s next updates tell you whether this pop has legs.
We’re back at it with more under-the-radar trade opportunities:
👉 Click here to watch the on-demand replay!
To Better Trading,
Alex Reid
