Palantir (PLTR) You will be hearing a lot about this company in the days, weeks, months and years ahead. It went public on Wednesday, September 30th, led by founder Peter Thiel, a fellow member of the "PayPal Mafia" with Elon Musk. Palantir is the profit-making arm of what can best be described as "Big Brother." It collects, evaluates and sells data on everyone and everything...period. Politics and morality aside, there can be some good outcomes for this work. Palantir is working on Covid contact tracing, cyber security and counter-terrorism. About half of their contracts are with the military and assorted other U.S. law enforcement agencies, much of it is classified. The PRO Service bought the PLTR Dec $11.00C on October 28th @ $1.30. This was a short-term "Special Situation" which was based on hourly price bars confirming a bullish short-term trend. That call reached a high Friday of $4.55, +250% before closing the day at $3.45, +165%. There are now enough bars to establish not just a short-term trend, but an intermediate term trend as well. Accordingly, the Premium Service, which is more of an Intermediate Term trading service, bought the Dec $14C on Friday. This stock is new, it is cheap and the options are even cheaper. It is also just now attracting attention from the Robinhood crowd, so it has the potential to repeat the outstanding performance of the initial short-term trade. Can it be another Tesla? Stay tuned as I learn more about the company. Suffice it to say they are in the right sector (software) with the right product (data) at the right time (emergence of artificial intelligence). The Big Picture Next week should lead the way for a new unambiguous leg, up or down, which will be more tradable and with more confidence than we have seen the past two weeks. Despite the clapping for the rally last week, take a look at the index charts below. First word that comes to mind when describing the virtual identical trends of all three: Sideways. Next week should give us a sense for where it is going to be breaking out.
