Dear Friend,
There is a date on a federal EPA permit that should terrify every SPCX shareholder.
January 2, 2027.
That’s the day the temporary power keeping Elon Musk’s supercomputer alive gets legally shut off.
No extension. No negotiation. A hard federal deadline.
If Colossus goes dark, the $45 billion Anthropic contract evaporates. The $1.75 trillion valuation collapses.
Musk can’t wait 3-to-5 years for permanent equipment. He has months.
He’s mathematically forced to buy his way to the front of the line — through one small company that specializes in speed.
Dylan Jovine identified it nine months ago. The stock is still priced like a boring industrial.
See the one company Musk can’t build without >>
“The Buck Stops Here,”
Kelly Maguire
Behind the Markets
Time to Sell? 3 Winners With Fading Technical Momentum
Reported by Dan Schmidt. Article Posted: 6/13/2026.
Key Points
- Volatile markets can make it difficult for investors to decide on a course of action, especially when 2% daily moves are the norm.
- When markets become volatile, technical analysis becomes more crucial for identifying trends and momentum shifts.
- Fortinet, Amprius Technologies, and AppLovin are three stocks showing bearish technical signals despite gaining 20% or more over the past 12 months, indicating it might be time to hit the cash register.
- Special Report: Everyone wanted SpaceX. Smart money wants this.
Markets move faster than ever these days, and yesterday’s winners can quickly become today’s losers. When prices outrun fundamentals, traders often turn to technical indicators and signals to guide their decisions. Momentum tools like the Relative Strength Index (RSI) don’t predict the future, but they can offer clues about where a stock may be headed and how much strength supports the move. Used together, these indicators can provide solid evidence that a downtrend is about to break or, in the case of these three stocks, that an uptrend is losing momentum.
The tech sector has been one of the most volatile parts of the market over the past few weeks, with the Nasdaq 100 fluctuating by more than 2% in a single day on multiple occasions. While volatile sessions can be fun for day traders, they can make it difficult to gauge the market when indices swing by 2% every day. That’s where technical analysis comes in. Technical indicators use recent price data to generate actionable signals about shifts or continuations in momentum. By applying technical analysis, we can make educated predictions about a stock’s future path based on the intensity of buying or selling activity around it.
SpaceX will crumble without these 5 companies (Ad)
The SpaceX IPO is drawing near, but the real opportunity may lie in 5 lesser-known companies providing the critical infrastructure SpaceX depends on to operate.
Goldman Sachs and Morgan Stanley are reportedly already building positions in one of these names. Another is a resource miner that Elon Musk's broader empire - including Tesla - relies on. Lance Ippolito has detailed all five inside his free SpaceX Investing Blackbook.
Download the free SpaceX Investing Blackbook before these names go mainstreamEach of the following three stocks fits a specific set of criteria. All three have gained 20% or more over the last 12 months, driven by a mix of fundamental and macro factors. However, each is now showing technical warning signs that investors should carefully examine.
Fortinet: Overbought Peak With Insider Selling Warning
Fortinet Inc. (NASDAQ: FTNT) has become the face of the “software isn’t dead” narrative. The $106 billion cybersecurity firm has seen its stock climb more than 80% year-to-date (YTD), including more than 70% in the past three months alone.
The software sector seemed to be in the crosshairs of agentic AI, and funds like the iShares Expanded Tech-Software Sector ETF (BATS: IGV) lost more than 35% of their value between September and April. However, strong earnings from companies like Fortinet showed that AI can complement software platforms rather than wipe them out. Fortinet smashed expectations in Q1 2026, beating both top- and bottom-line estimates and posting 20% year-over-year (YOY) revenue growth.
Management also raised full-year guidance and repurchased more than $800 million worth of stock. So why is this stock on a “time to sell” list? Because sometimes the most important technical signals aren’t shown on the chart. Insiders have been selling stock at a faster pace over the last two quarters, including a $23 million sale from CEO Ken Xie.
There has been no significant insider buying over the past year, and insider selling at a technical top is often a warning sign. Widening Bollinger Bands indicate that volatile trading has become the norm for FTNT shares, and the Moving Average Convergence Divergence (MACD) indicator has turned bearish following the strong rally. The company’s long-term fundamentals still look promising, but it may be wise to take some short-term profits now.
Amprius: Technical Breakdown Amid Negative Catalysts
Amprius Technologies Inc. (NYSE: AMPX) lacks the strong fundamental foundation that Fortinet has, which means its downturn could be much sharper.
The lithium-ion battery producer is beating revenue estimates, and its stock is still up more than 100% YTD, but the rally is faltering amid concerns about the quality of its revenue. A recent report by a short-seller claims that the company inflates its orders and engages in undisclosed transactions with a related party affiliated with Amprius’s CEO.
The company also reported a larger-than-expected loss in its Q1 2026 earnings report on May 6, and insiders have sold $83 million worth of shares over the last three quarters, without a single buy.
AMPX may be heading for the dreaded double-top pattern, and other signals suggest that the fun is over. Both the RSI and MACD have been trending down since the middle of March, and the RSI has spent most of the last six weeks in bearish territory. AMPX isn’t profitable yet, and short sellers are openly questioning its revenue streams, so it would be wise to avoid this stock or take profits while you can.
AppLovin: Death Cross Overshadows Fundamental Strength
AppLovin Corp. (NASDAQ: APP) is already down more than 25% YTD, even though it grew revenue by more than 56% in Q1 2026 and remains well regarded by analysts. But despite a strong fundamental picture, the stock is in the throes of a bear market that has proven difficult to shake.
It may seem counterintuitive, but APP shares probably won’t reflect the company’s strength until the technical setup improves.
An early-March Death Cross indicated the stock has a long way to go before regaining buying momentum.
The Death Cross sent the stock plunging below the 50-day and 200-day moving averages, where it stayed until late May.
APP shares tried to break out at the end of May, but sellers quickly pushed the share price back below the 200-day moving average, and now it is once again testing the 50-day moving average. With the RSI also below 50, APP shares can remain on your watchlist until they make a significant move above the 50-day moving average.
Plot Twist: How the $110B Paramount-Warner Deal Rewrites Media
Reported by Jeffrey Neal Johnson. Article Posted: 6/16/2026.
Key Points
- Unrestricted government approval for legacy media consolidation paves the way for a highly anticipated and lucrative valuation rerating across the broader industry.
- The current pricing disparity between the acquisition target and the official buyout offer provides a merger arbitrage opportunity for proactive institutional capital.
- Cash-rich technology platforms are now perfectly positioned to aggressively acquire deeply discounted entertainment assets to build out premium streaming content libraries.
- Special Report: Everyone wanted SpaceX. Smart money wants this.
For the past three years, the market has assigned a steep regulatory discount to the entire entertainment sector. Investors broadly assumed that Washington regulators would quickly block any horizontal integration that could concentrate too much market share among the legacy Hollywood studios. That foundational assumption dissolved this week. The Department of Justice Antitrust Division cleared Paramount Skydance (NASDAQ: PSKY) to acquire Warner Bros. Discovery (NASDAQ: WBD) in a massive $110.9 billion all-cash transaction.
By allowing this monumental transaction to proceed without requiring a single asset spin-off or behavioral remedy, federal regulators have signaled open season for large-scale media consolidation. The decision permanently dismantles the regulatory ceiling that has severely suppressed legacy media valuations for years. Valued at a 7.5 multiple on 2026 EBITDA, this landmark clearance creates an immediate ripple effect across the broader communications and technology sectors.
The 14% Arbitrage Ticket: Pricing the Final Act
SpaceX will crumble without these 5 companies (Ad)
The SpaceX IPO is drawing near, but the real opportunity may lie in 5 lesser-known companies providing the critical infrastructure SpaceX depends on to operate.
Goldman Sachs and Morgan Stanley are reportedly already building positions in one of these names. Another is a resource miner that Elon Musk's broader empire - including Tesla - relies on. Lance Ippolito has detailed all five inside his free SpaceX Investing Blackbook.
Download the free SpaceX Investing Blackbook before these names go mainstreamThe mechanics of this transaction offer a highly lucrative window into how institutional capital prices regulatory risk in real time. Paramount Skydance is officially acquiring Warner Bros. Discovery at a buyout price of $31 per share.
Despite the unconditional domestic approval, Warner Bros. Discovery currently trades near $27. That pricing gap creates a highly attractive 14% merger arbitrage spread. In an all-cash buyout scenario, a spread of this magnitude reflects the time value of money and the remaining secondary hurdles the deal must clear before the anticipated third-quarter 2026 closing date.
While domestic clearance is typically the heaviest lift in any merger, the transaction still faces international scrutiny. The European Union and the United Kingdom Competition and Markets Authority have review deadlines approaching in July and August, respectively. Localized lawsuits from state attorneys general remain a peripheral threat that institutional investors must model into their risk profiles. The current 14% spread effectively absorbs these secondary risks, pricing in a high probability of completion while still rewarding investors willing to park capital through the final closing date.
Big Tech's Binge Watch
Beyond the immediate arbitrage opportunity, the Department of Justice decision forces a structural rerating of the entire global streaming hierarchy. Streaming pure-plays currently command massive market premiums over their legacy counterparts. Netflix (NASDAQ: NFLX) holds a market capitalization exceeding $340 billion, far outstripping the combined enterprise values of nearly all legacy studios.
These tech-backed streaming platforms desperately need premium content libraries to maintain subscriber growth, but creating original content from scratch is highly capital-intensive and incredibly speculative. Buying existing distressed media assets is vastly more efficient for a tech giant. Netflix previously validated this strategic imperative with an $82.7 billion cash offer for Warner Bros. Discovery, a highly aggressive bid that ultimately forced Paramount Skydance to the table with its $110.9 billion winning offer for the assets.
With the federal government officially greenlighting horizontal integration, distressed media assets trading at fractional price-to-sales ratios are now prime defensive acquisition targets. Paramount Skydance currently trades at just 0.41x sales, while Warner Bros. Discovery trades at 1.83x sales. Cash-rich tech platforms can now weaponize their pristine balance sheets to swallow these deeply discounted content libraries, accelerating a massive wave of defensive acquisitions across the industry.
Curing the Linear Television Hangover
To understand why legacy studios are so desperate to merge right now, investors have to look deep into the underlying balance sheets. The painful shift from traditional linear television to direct-to-consumer streaming has triggered severe margin compression across the entire entertainment industry. Building a flawless global streaming infrastructure requires immense upfront capital, while the legacy cable networks that traditionally funded these studios are suffering from rapidly declining subscriber revenues.
Warner Bros. Discovery highlights this exact fundamental friction. Warner Bros. generates an impressive $37.21 billion in annual sales but struggles with profitability, reporting a trailing 12-month earnings-per-share loss of 70 cents and a painful net margin of negative 4.67%. Warner Bros.' balance sheet shows a debt-to-equity ratio of 0.92, a financial hangover from the 2022 merger that originally formed the network. Corporate governance friction remains highly elevated, highlighted by shareholders' recent rejection of Chief Executive Officer David Zaslav's $165 million compensation package for 2025.
Paramount Skydance faces structural headwinds that are similarly severe. While Paramount Skydance generates $28.89 billion in annual sales and offers a respectable 1.9% dividend yield, the business operates with a negative net margin of 2.08% and a high debt-to-equity ratio of 1.16. Aggressively scaling operations is the only viable path to offset the massive integration and content-acquisition costs inherent to the modern streaming business. By combining physical infrastructure, massive marketing budgets, and legendary intellectual property portfolios, the newly formed media conglomerate aims to restore pricing power and finally stabilize margins.
Institutional Casting Calls
Institutional investors have already begun aggressively positioning their portfolios for the post-merger landscape. Dimensional Fund Advisors and Bank of America maintain steady equity positions in Warner Bros. Discovery, using the current arbitrage spread as a low-beta accumulation zone while waiting for the deal to finalize. On the other side of the aisle, massive private equity firms like KKR & Company hold strategic positions in Paramount Skydance, signaling high institutional conviction in the newly scaled production model.
Paramount Skydance also carries a surprisingly bearish short interest profile. This elevated short positioning reflects deep-seated market skepticism about the massive debt load the newly combined entity will carry and the sheer complexity of post-merger integration. Extracting the projected financial savings from two massive legacy studio bureaucracies is notoriously difficult. Bearish traders are heavily betting that the integration costs will severely dent free cash flow in the quarters immediately following the close, delaying any meaningful return on investment.
Positioning for the Next Media Blockbuster
The regulatory dam breaking completely transforms the media sector from a distressed value trap into a highly lucrative, catalyst-rich environment. The potent combination of deeply depressed equity valuations, a newly cleared path to regulatory approval, and the looming threat of tech-driven acquisitions creates a highly dynamic setup for proactive investors. Taking a close look at the 14% merger arbitrage spread present in Warner Bros. Discovery offers a compelling short-duration play, while monitoring the broader media ecosystem will help identify the next wave of defensive consolidation before it hits the tape.
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