Hello Trader,
Elon Musk recently bought 9% of Twitter on Freedom of Speech concerns. Elon thinks TWTR’s censorship has gone too far, and after his stake was made public, the stock rocketed over 27%. You can read more about that HERE.
But What about Facebook and Youtube?
They’ve been banning conservative-leaning content for ages! I’ve found 2 Freedom of Speech stocks that look poised to break out and rival the established giants!
Twitter Banned Donald Trump, Facebook, and Youtube banned a lot of right-leaning content. Some would say that this type of censorship is a war on the Truth and Freedom of Speech. They could be correct, ZeroHedge was banned from Twitter for reporting on the early stages of Covid, as it turned out most of what they were saying later became mainstream, and they were let back on a few months later after insiders managed to sell their stocks before the crash! Apparently, people aren’t allowed to panic until the government says they can panic!
After being banned from Twitter, Donald Trump has decided to start his own Social Network called Truth Social. After the initial announcement, the stock rocketed over 1000%. It has since pulled back, and I think it could be due for another spike soon.
DWAC
TRUTH Social is going public via a SPAC, and is currently trading under the symbol DWAC (Digital World Acquisition Corp until the merger is complete. It’s focus is on free speech and allowing a forum for everyone, no matter which side of the political spectrum they’re on. This would allow more right-leaning content which is being filtered and banned by current, obviously left-leaning tech giants.
Technicals
The $40 area was a major level of support last time DWAC traded there. From this level, the sock went on to run over $100. Currently, DWAC is trading at the $50 area. This was a previous level of consolidation, which saw a run to over $90 in a matter of weeks. There are a lot of shorts in this name, and if this $50 level holds, I would not be surprised with a rapid move to test $70 or more.
I believe this stock has at least 1 more big run in it, and I am watching it very closely. I will be sure to let subscribers know as soon as I believe the stock is ready and I have entered a trade!
CFVI
Whilst DWAC is looking to compete with the likes of Facebook and Twitter, CFVI is another SPAC looking to merge with Rumble. Rumble is a conservative-leaning social media platform focused on streaming video. Rumble is looking to compete with Youtube, which has banned and taken down a lot of conservative-leaning content which is accessible on Rumble. In fact, Donald Trump’s Truth Social plans to work with Rumble to distribute video content.
CFVI has been consolidating at the $11 area for a very long time. It also tends to trade in sympathy with DWAC. So if DWAC starts to run, there is a high probability that CFVI will also spike and find some buyers. I am watching this stock alongside DWAC.
Key Takeaway
When a stock in a certain sector explodes, other stocks in the same sector can follow. These are called Sympathy stocks and Trades. This can lead to short-term “scalping” opportunities.
