What Sparked GameStop's Meteoric Rise & Short-Seller Demise?

Hello,

below a summary of relevant events happened in the stock market in the last week

📈 1/ Stocks and sectors bought by US politicians last week

This week, the trading activity at Capitol Hill was substantial, with 117 transactions taking place

Semiconductors and Banks were the most invested sectors

If you want to receive daily updates on politicians trades, click here

🏦 2/ US Politicians potential insider trading: Sen. Tuberville’s Investment in Mexican Airport Operator Takes Flight

Sen. Tommy Tuberville, one of Congress’s most frequent traders, has often garnered both attention and criticism for his multiple stock trades. Most recently, his multiple purchases of HUMA stock have been called out due to the issuer’s stock price hiking by more than +120% year-to-date thanks to the company’s work during the Ukraine conflict. It also does not help that Senator Tuberville sits on the Senate Armed Services Committee.

Interestingly, our trade to watch this week is also in an aerospace stock. On April 5, Sen. Tuberville bought up to $15,000 worth of Grupo Aeroportuario Del Pac (PAC:US) shares. Headquartered in Guadalajara, Grupo Aeroportuario del Pacífico is Mexico's second-largest airport operator by passenger traffic. Since the purchase, PAC shares have risen by nearly 11.06%. The Senator bought between a range of 6 - 88 shares and later sold between 6 - 82 PAC shares on April 29. Details of both transactions were reported in his periodic transaction report, disclosed on May 15.

If you want to receive daily updates on political trading, click here

🔥Recommended link🔥

How to be notified when politicians buy / sell stocks

As seen before, some suspicious trades were made by Congress Members and their relatives

However, the GOOD NEWS is that their moves can be copied (politicians need to disclose their stock positions)

The Seven Lakes Research analyst team provides PREMIUM detailed updates from Monday to Friday with all the relevant fact on: 

Click on the button below to start receiving them 👇👇👇👇👇

GET DAILY UPDATES

📄 3/ Interesting stock market stories

STORY #1:  Examining Short Selling Impact and Market Speculation Revolving GameStop's Stock Surge

Over a frenzied two-week period, GameStop Corp. (GME:US) has witnessed a significant surge in its share price, more than tripling its value. Unlike AMC Entertainment Holdings Inc. (AMC:US), another popular meme stock.

 On Monday, GameStop experienced a remarkable surge, resulting in significant losses for short sellers, nearing $1 billion. The stock's staggering +74% increase caused short-selling hedge funds to face a mark-to-market loss of $838 million. Ihor Dusaniwsky, managing director of predictive analytics at S3, noted the likelihood of short covering due to the stock's high squeeze score.

The sudden rise in GameStop's stock price was seemingly initiated by Keith Gill, known as "Roaring Kitty," who reappeared on a social media platform, sparking memories of the 2021 episode where he encouraged day traders to invest in the company. This resurgence in interest, often characterized as a "meme stock" frenzy, involves individual investors targeting short sellers and hedge funds, compelling them to cover their positions and drive up stock prices.

 In May alone, short sellers in GameStop have incurred losses totaling $1.24 billion. Dusaniwsky highlighted the possibility of further short selling, especially as the stock price hovers around or exceeds the $30 level, which may attract new entrants into the trade.

 Short selling, a strategy where investors borrow shares anticipating a decline in market value, underpins much of the speculation surrounding GameStop and similar "meme stocks." Notably, GameStop was not the only stock experiencing a surge on Monday, with AMC and Reddit also seeing significant increases.

 On the congressional trading front, new trades have yet to be disclosed. But it's only a matter of time before we receive one, After all, there is a 45-day window for politicians to disclose their stock trades.

If you want to be notified when insiders trade stock, we send daily email alerts here 

STORY #2: U.S. Senate Approves Aviation Bill with Emphasis on Safety

On Thursday, the U.S. Senate decisively approved a comprehensive aviation bill, signaling a significant investment in air travel safety and operational enhancements. This legislation, allocating $105 billion over a five-year period, represents a pivotal reauthorization of the Federal Aviation Administration (FAA).

 Key provisions of the bill include mandates to prohibit airlines from implementing fees for family seating arrangements and to upgrade cockpit recording devices to a minimum of 25 hours, a substantial increase from the current standard of two hours. Additionally, it directs the FAA to implement advanced airport surface technologies to mitigate collision risks effectively.

Recent aviation incidents, notably the mid-air emergency involving Alaska Airlines' Boeing 737 MAX 9 door plug, have underscored the pressing need for heightened safety measures. Despite calls to raise the mandatory pilot retirement age to 67, this provision did not find its way into the final bill.

 Consumer protection features prominently in the legislation, with civil penalties for airline violations set to increase from $25,000 to $75,000 per infringement. Addressing a looming shortage of air traffic controllers, the bill directs the FAA to implement improved staffing standards and bolster recruitment efforts for inspectors, engineers, and technical specialists.

 While Congress delegates the determination of minimum seat sizes to the FAA, it mandates the creation of a consumer-facing dashboard to provide transparency regarding seating standards across U.S. airlines.

 Year to date, the congressional activity regarding civil aviation stocks has been limited. Two congress members were seen on the selling side of the market. Congressman Bill Keating and Representative Blake Moore both reported selling their stakes in the U.S. aerospace firm Boeing Co.

 In the sphere of civil aviation stocks, congressional involvement thus far this year has been notably restrained. Recent disclosures indicate that two members of Congress, namely Congressman Bill Keating and Representative Blake Moore, opted to divest their holdings in the U.S. aerospace corporation, Boeing Co. (BA:US) in January and February.

If you want to be notified when politicians trade stock, we send daily email alerts here 

STORY #3:  A Summary of the Main Trades Placed by Politicians and Insiders this Week

U.S. Representative Marjorie Taylor Greene just reported a purchase of Tractor Supply Company (TSCO) stock which has has disclosed $520,000 of lobbying in the last year.

 Exxon (XOM) stock has now risen 141% since Representative Michael Guest bought in. This was his only stock purchase in 2021.  At the time, he sat on an energy subcommittee. Now, he is the Chairman of the Ethics Committee. The FTC has alleged that Pioneer Resources (PXD) colluded with OPEC to raise oil prices.

 We estimate that Representative Kevin Hern has made $415K from his frequent trading of the company's stock.

 Senator Tommy Tuberville bought stock in a Humacyte (HUMA). A small biotech company that makes implantable human tissues. They have been testing this tech in Ukraine. Tuberville sits on the Senate Armed Services Committee.

 We estimate Rep Nancy Pelosi has already made $3.86M in the stock market so far in May (20x her annual salary). Nearly $500k alone last Friday 5/3.

If you want to be notified when politicians trade stock, we send daily email alerts here 

📄 4/ Political Trading Bot

As you may remember, we have a trading bot that buys the same stocks as politicians

The bot is offered by the SEC registered broker QB, which will perform the trades. We will just provide them with the necessary data to execute

This means that every time politicians buy sizable amount of stocks, the bot buys those stocks as well

If you want to learn more about how to get access to the Political Trading Bot, click on the video below.

We assessed its performance, and it has been delivering solid results so far.

• We launched in May 2022 and the performance was +24% return

• Performance since April 2020 was +237% return