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One of the most important jobs of a good trader is to recognize market patterns quickly as they occur. Ever since the Donald Trump SPAC (DWAC) merger was announced, and it ran over 1000% in one day, the SPAC sector has caught fire. Understanding that SPAC’s were in play when I heard that Faze Clan was merging with BRPM, that got me excited. My kids love Faze Clan, and I immediately knew this stock could go much higher.

Here was my Live Trade Call in the Wall Street Octagon:

Oct 25, 2021 at 12:30 PM – Jeff Bishop :

Buying BRPM for new merger with FaZe. Looking to scale into this, probably a multi-day hold

Oct 25, 1:02 PM

Jeff Bishop: adding BRPM around here. Looking to get big size into tomorrow.

Oct 25, 3:35 PM

Jeff Bishop (Moderator): holding BKKT (decent size) and BRPM (big size) into tomorrow.

Oct 26, 7:48 AM

Jeff Bishop: I am going to start unloading the big BRPM position too in mid-$12’s.

Oct 26, 9:17 AM

Jeff Bishop: slowly unloading BRPM into this spike. I’ll be out near the open. 

Oct 26, 9:32 AM

Jeff Bishop: dang, I missed another $2 spike on BRPM, but can’t be too upset.

Total Alpha members have access to the Wall Street Octagon at no cost through the end of the year as a thank you from me personally. It’s really beneficial to teach and trade like this in a live environment!

Fundamentals

  • FaZe Clan is a leading digital content platform created for, and by, the Gen Z and Millennial generations
  • With a combined social media reach of over 350 million, including both its owned and operated channels and its network of content creators and personalities, FaZe Clan is positioned to reimagine traditional entertainment and culture for the next generation

My kids love watching Lil Yachty and Bronny play competitive video games. So I was really excited when BRPM announced they would be merging with Faze Clan.

Now I didn’t just buy the stock because I liked the brand and the sector they were in. 

Hot Sector

I liked the stock because SPAC’s were going crazy, and I knew this stock could too. You see, a new Donald Trump SPAC called DWAC had just run over 1000% a couple of days before. On this day, a crypto SPAC called BKKT was up 100% and doing tremendous volume. I knew that if I could get BRPM anywhere near $10, that could be a great price for a stock that I thought might also catch fire.

I let everyone in the Wall Street Octagon know that I was building a position in BRPM. I was looking to buy as much as I could near $11, with my average at around $11.20. 

Oct 25, 2021 at 12:30 PM – Jeff Bishop :

Buying BRPM for new merger with FaZe. Looking to scale into this, probably a multi-day hold.

I was looking to hold this overnight for a possible gap up on all the SPAC hype, and that is exactly what happened the next day. Some buying came into BRPM in the pre-market, and I got out most of my position in the mid 12’s. It was a great trade and had worked perfectly. The only problem was I got out too early, as the stock exploded another $3 higher to $15.74. It was a great trade nonetheless.

Bottom Line

One of the most important jobs of a good trader is to recognize market patterns quickly as they occur. 

A Donald Trump SPAC ignited the hot new SPAC merger sector. I noticed this quickly and was ready to pull the trigger when a company I loved known as Faze Clan announced it was merging with BRPM. I bought as much as I could at great prices and held overnight selling into the momentum the next morning. 

It was a great trade except for the fact that the stock went even further than I had expected!

Author:
Jeff Bishop

One of the best traders anywhere, over the past 20 years Jeff’s made multi-millions trading stocks, ETFs, and options. He is renowned as an incredible trader with a deep insight and a sensitive pulse on the markets and the economy. Jeff Bishop is CEO and Co-Founder of RagingBull.com.

Even greater than his prowess as a trader is his skill and passion in teaching others how to trade and rake in profits while managing risk.

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