Trade Alert: Rare Earths And AI Data Storage

Asymmetric upside bets on Portfolio Armor top names in both of those themes; plus, a special situation.

Rare Earths, AI Storage, and a Special Situation

We’re adding three new trades today across two categories: two from our Top Names list, and one special situation flagged by our Market Watchers list. All three share a common thread: asymmetric upside with strictly defined downside.

Two of today’s names come from the Top Names list and fit two of our core current themes. Both stocks are down sharply from their highs this year—one by more than 60%, the other by more than 30%—but both pass our “falling knives” filters. Each has a Chartmill setup rating of 5 or higher and an RSI above 40, suggesting they’re not in capitulation mode and may be stabilizing at these levels. For names showing early signs of basing after significant drawdowns, these hybrid and combo structures let us participate in a potential rebound while capping our risk tightly.

Our third trade is a special situation that has been developing over the last couple of weeks. A major global shipping company recently received an initial buyout offer that appears to undervalue the business relative to its assets. The stock isn’t far from its year-to-date highs—it peaked only a few dollars above where it trades now—but the thesis flagged by Market Watchers is still very much in play. We exited one trade in this name last week for a profit and are rolling into a new, defined-risk structure to stay positioned if the situation escalates.

Full trade details below.

Today’s First Top Names Trade

Reindustrialization / Strategic Materials theme