Another high-profile short report crashed into the market this week, making loads of headlines and — more importantly — lucrative trading opportunities.
Investment research firm Hindenburg Research dropped its latest report profiling online sport-betting platform DraftKings Inc. (Nasdaq: DKNG).
The report alleges a company DraftKings acquired as a part of its SPAC deal has some questionable business practices overseas, which DraftKings denied following the report’s release.
The DraftKings short report saw the stock gap down 10% from Monday’s $50.59 close, sparking a market frenzy.
Volume in DKNG spiked over 400% from its normal levels on the day.
But believe it or not, this short report is the most bullish event that has happened to this stock in months.
Investors have already stepped in to defend the stock, pushing shares back above the $48 mark as of Wednesday morning.
But there was one massive trade that stood out to me, from what looks like an absolute whale.
While it was a good trade for them, it could be even better for us. And that has me more optimistic than ever about where this stock is headed.
Short sellers are facing stiff pushback from retail investors both in the market and on social media…
And the DraftKings short report is exactly the type of aggressive media blitz that turned GameStop Corp. (NYSE: GME) into the biggest meme stock circus of 2021, complete with its own Congressional hearing sideshow.
In addition to activist retail investors, Tuesday saw some big institutional support.
Growth investor Cathie Wood jumped into the free-for-all, snapping up over 870,000 shares on the dip.
Finding support in the mid-$40 range is a strong bullish sign for DKNG. Which is good news for me, especially since I dropped $40,000 on sports betting stocks a few short weeks ago.
But remember, almost 80% of gaps get filled. Where’s the next gap? Check out the quick video below and I’ll show you where I see the stock moving, along with the massive options play that has me so pumped.
Leave me a comment and let me know if you think the DraftKings short report is the real deal, or if it’s just a hit job to manufacture cheap wins for the shorts.
You can follow me on social media @lanceippolito on Twitter and Instagram. And as always, be sure to subscribe to our YouTube channel if you haven’t already so you can be notified as soon as we post our next video!
P.S. Ever wonder why Wall Street always seems to be one step ahead of the average Joe trader?
It’s because the big firms have a ton of top-secret trading strategies that give them an edge over everyone else!
And while their methods are usually kept under lock and key… I’m pulling back the curtain on Wall Street’s best kept market strategy.
I’m ready to reveal how tracking what I call a “Shadow Blitz” can help predict which stocks are ready to explode…
Handing everyday traders huge cash windfalls in as little as 24 hours!