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![]() Millions of High-Rate Mortgages Are About to Refinance — Are You Ready? Hey, Graham Lindman here… While most traders are looking at Toll Brothers (TOL) and PulteGroup (PHM) to play the falling interest rate story, I’ve been focused on something entirely different. Homebuilders rely heavily on new home sales, and with the housing market slowing down, I don’t see that as the most compelling angle right now. The company I’m focused on is Rocket (RKT). It offers a completely different opportunity, and in my view, it’s the better way to position yourself for what’s coming, in my opinion. The key is understanding where RKT makes its money — and why that matters as interest rates shift. Why Rocket Stands Apart From Traditional Homebuilders Homebuilders depend on new home demand — that’s their entire business model. But right now that demand is facing real pressure as affordability tightens and buyers hesitate, which is why TOL and PHM aren’t the bets I’d want to make at this moment. RKT, on the other hand, isn’t reliant on new home selling. Its core strength is mortgage activity, and refinancing in particular is where it shines. Over the past few years, millions of mortgages were originated at historically high rates. If those rates start falling, RKT stands directly in the path of a surge in refinancing activity. That’s the fundamental difference. When you have a market full of homeowners holding expensive mortgages, even a modest decline in rates can trigger a wave of refinancing — and RKT is positioned to capture it. The Technical Setup and Upside Potential There’s also a compelling technical story here. RKT was trading right at its 200-day moving average Friday with a strong bounce off $17, and the most recent peak was $24. That move from $17 to $24 may not sound massive at first glance, but it’s roughly a 50% shift in the underlying stock. And here’s the important part — that move happened fast. The last time RKT went from $17 to $24, it took about two months. That’s the kind of price action you can see when the fundamentals and macro conditions start to align. From current levels, just reclaiming the previous highs implies about 40% upside. For a stock tied directly to interest rate sensitivity and consumer refinancing behavior, that kind of setup becomes especially attractive when rates are trending downward. Now imagine rates dropping even a little. Homeowners who locked in mortgages at elevated levels suddenly have a reason to refinance. With the sheer number of high-rate mortgages issued over the last two to three years, even a mild shift could send a substantial amount of business toward RKT. That’s why this isn’t just a housing play — it’s a refinancing play. And right now, that’s the more powerful story. And if you want to dive even deeper, you can always join the New Money Crew text chain, where we’ll send you a fourth stock that hits the scanner around midday! |
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Have You Heard? One secret predicted the COVID crash, the rise of Nvidia, 2022’s bear market and just signaled the ultimate buy signal on one overlooked stock! Silas Peters recently went live with Chris Pulver as he revealed all the details… Including the ticker for everyone watching! ![]() Disclaimer: We develop tools and strategies to the best of our ability, but no one can guarantee the future. There is always a risk of loss when trading. Past performance is not indicative of future results. While we have been using the Alpha Arrows with great success, we cannot guarantee any future results. What you will see today are some of the best examples over the last few months. There were bigger winners, there were smaller winners, and there were losers. Since the Alpha Arrows is a tool for traders and not a trading service, profits and performance will vary among users. Today’s New Money Crew Scanner is showing strong bullish alignment across the board, with all three names earning 4/4 star ratings and flashing perfect technical alignment across short/long term trends, weekly setups, seasonality and option flow. Top Picks Waste Management (WM) — Trading at $236.32 with an 80% monthly score and a perfect alignment reading. Volume sits at 1.8M, supporting the steady upside structure. Applied Materials (AMAT) — Trading at $376.25 with an 80% monthly score and full technical alignment. Volume of 3.6M adds liquidity to an already strong continuation profile. Vistra (VST) — Trading at $173.57 with an 80% monthly score and clean alignment across all major factors. Lighter volume at 0.5M, but momentum remains intact. Takeaway When multiple names are printing 4/4 alignment with 80% monthly scores and clean technical structure, it signals broad participation — not just a one-stock story. This is the kind of environment where disciplined momentum setups can continue to follow through. Glad to have you in the Crew, Graham Lindman Graham Lindman Trading Follow along for real-time analysis, trade ideas, market insights and more in my public Telegram channel! Important Note: No one from the Prosperity team or Graham Lindman Trading will ever contact you directly on Telegram. |
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