Weekly Wins: DeepSeek Offered Big Profits to Nimble Traders
Let's look at some of this week's best research and engaging stories from around The Arena.
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Welcome to this week’s Weekly Wins. In the past, wins were focused on our best trades. But many of you aren’t here for quick wins. You’re here for quality analysis and investment ideas. With that, I will continue to showcase trading wins when they’re truly interesting. However, it will be more fun to share some of my favorite articles each week that you may not have seen.
DeepSeek Gives Way to Opportunity
This week kicked off with news out of China that DeepSeek had made huge advances in AI that didn’t rely on the tech investment required by Western AI. Nvidia dropped 18% on the news and hasn’t recovered.
But our Pro contributors found opportunity in the carnage.
Sarge decided that Palantir PLTR would be a good bet on Monday and took the opportunity to buy more. He also purchased Salesforce CRM, Snowflake SNOW, and was interested in ServiceNow NOW, and SoFi SOFI. You can read more in Why I'm Buying Palantir in Wake of DeepSeek AI Stock Turmoil.
Here's a chart of Palantir, and you can see that Sarge's top pick has been a yearly win! But had you followed Sarge in this trade on Monday, you'd be up over 10%.
Chris Versace noted that DeepSeek V3 has been out since December and felt that the market was overreacting. He used the decline to add to four Portfolio holdings, including the VanEck Uranium and Nuclear Energy ETF NLR, which has gained about 5% since Monday’s close. You can read more in We're Using DeepSeek Chaos to Initiate a New Position, Add to Three Others.
Bob Byrne gave us the Top 4 Quantum Computing Names to Watch in Case Nvidia CEO Is Wrong. Bob makes the case that DeepSneak, as he calls it, has created a more efficient AI that will benefit downstream consumers of AI. His trades include Salesforce CRM, Snowflake SNOW, and Microsoft MSFT. He’s also interested in Quantum Computing and thinks that there are stocks to watch in this space. These include Rigetti Computing RGTI, D-Wave Quantum QBTS, and IonQ Inc IONQ.
Peter Tchir is one of our global macro and geopolitical experts on TheStreet Pro. While the contributors I mentioned above saw opportunity, Peter looked at market structure to analyze the risks. And he found plenty! Specifically, the stock market is highly leveraged to the Mag 7. Peter feels that much of the good news is priced into these stocks already and if DeepSeek impacts their business models, we could be in for a bout of volatility. You can read all about it in Is DeepSeek ‘Cheep AI’ Really a Stock Market Black Swan Event.
On TheStreet Pro, we follow more than just the stock market. We also cover commodities and other asset classes.
Carley Garner, in Copper and Crude Oil Prices Offer Clues on the Future of Inflation, notes that traders are overwhelmingly positioned for higher inflation, higher interest rates, and higher economic growth. That makes this a crowded trade. Both Crude Oil and Copper are sitting at possible turning points that could see breaks of support and a flood of traders looking for the exits.
Sunday Funday
If you’re not reading Sunday Soup, you should! Chris Versace fills us in on what he’s reading, which is a diverse potpourri of ideas. Last week, in Sunday Soup: 55+ Is the ‘New Problem,’ Why Sleep Is Critical, Buffett-Munger Reading, Chris shared a series of articles that included topics on Bird Flu, why my generation is now a problem, napping, and the best TP!
Is this the Beginning of the End?
Doug Kass has seen it all. He's the hedge fund guru that leads Doug's Daily Diary on TheStreet Pro. And he's made no secret this year that he's bearish. In Kass: A January 2025 Market Top and The Beginning of the End of the Mag 7?, Dougie lays makes his case. Whether you're a bull or a bear, it's a read that's worth your time.
Fan of the Fear and Greed Index? Here's what it's telling us now.
I'm not beyond talking my own book! In 2012, I created CNN's Fear and Greed Index. This week, I wrote The Fear & Greed Index Signals What's Next for the Stock Market which discusses where the stock market is and where it is headed.
If you're not a member yet...
More Favorites from Around The Arena.
From Autoblog:
Rivian’s Volkswagen partnership could reshape the EV market discusses how other auto manufacturers want to follow VW’s lead and buy Rivian’s industry-leading software to power their EVs.
Or maybe you’re like me and love the classics. How about an Alma Sprint, which is a restomod Alfa Romeo that’s not for the faint of heart. Read all about it in Alfa Romeo prototype from the 1980s revived by Alma Sprint.
From TheStreet:
Our sister publication takes a look at consumer behavior and the trends in casino revenues here, in Las Vegas Strip casinos face disturbing trend.
If you’re EV-curious, James Ochoa lays out the plusses and minuses of going electric and discusses basics like what you’ll experience with regenerative braking. The video is a fun watch here in Rivian R1S showcases the best, and worst, of EVs as James shows off his inner Soprano.
Powder Magazine:
I’ve been a life-long skier and fan of tree skiing. As I get older, I find that my legs can no longer keep up with what my brain wants to do. Lee Cohen is living the dream in Little Cottonwood Canyon, Utah, and I hope to follow the lead he lays out in Becoming and “Old Geezer” Should be Every Skier’s Goal.
Parade:
We used to have a Great Pyrenees mix. He was as sweet and gentle as he was large. So, when I read Great Pyrenees Guards Tiny Foster Kitten Like She’s ‘Her Baby’ in True display of Love, I was brought back to those days when my kids were little and my dog was big.
That’s all for this week. I hope you enjoyed this different take on Weekly Wins and if you're not a member, please join us!
