🚨Wall Street’s 3 Undercover Buys🚨
With over 60% of tech stocks down, institutions are triggering massive buy orders to protect their positions. Join me live at 3 p.m. ET today as I reveal the three unknown stocks getting the bulk of these undercover buys and exactly how I plan to play them [Click here to book your seat]
Something caught my eye recently, and I think it’s worth talking about…
I was reading an article about how many AI companies are facing a serious power problem. Everyone assumed nuclear was going to be the answer for powering all these massive data centers — but here’s where it gets interesting.
Because it takes so long to build nuclear facilities, these AI companies are turning to industrial engine manufacturers instead.
They’re actually going to Caterpillar (CAT), Waukesha, owned by INNIO Group (INIO), and Rolls-Royce Holdings (RR) and buying gargantuan 12-, 16-, and 20-cylinder industrial engines to generate power for their data centers.
That’s as “old economy” as it gets — and yet here we are.
The Stocks Worth Watching
Now, Caterpillar is already a massive company, so don’t expect a percentage explosion there. But the real opportunity, in my view, is in the smaller, more focused names.
Rolls-Royce Holdings (RR) and INIO (INIO) are the ones that will probably benefit the most from that. Their business models are more concentrated, and their market capitalizations leave a lot more room to run if this demand stream accelerates the way I think it will.
There’s also an industrial name I think is worth adding to the radar: Flowserve (FLS).
It’s a quietly essential player in the industrial ecosystem that manufactures the precision pumps, valves, and mechanical seals critical for heavy power infrastructure. Companies like that often get overlooked until the cycle forces people to notice them.
When I looked at these names recently, both RR and INIO were down a little, and FLS has been moving to its own rhythm.
For income-focused traders like me, that kind of setup is worth paying attention to. It’s the kind of entry that makes a cash-secured put or a patient accumulation strategy worth considering — provided you’re comfortable owning these names at the levels you’re targeting.
I’ll own it there or I won’t. Simple as that.
The Thesis Is Straightforward
AI needs massive amounts of power to operate. Nuclear takes too long to deploy. So industrial power generation equipment becomes the bridge solution while longer-term energy infrastructure catches up.
That’s not a short-term trade — that’s a structural tailwind that could last for years.
Something else worth factoring in is the broader market backdrop…
The major indexes haven’t been moving in unison. The S&P 500 (SPY) and Nasdaq 100 (QQQ) have slipped below where they opened a couple of weeks ago while the Dow Jones Industrial Average (DIA) has pushed significantly higher during that same stretch.
That kind of divergence often signals a rotation under the surface, and rotations like that tend to favor industrials.
When capital starts flowing toward old-economy names, the companies providing real-world infrastructure — engines, components, seals and manufacturing capacity — usually benefit.
Look, everyone is piling into semiconductors and AI software names that have already had enormous runs. I get it.
But sometimes the smarter play is finding the picks-and-shovels story that nobody is talking about yet.
These industrial engine manufacturers — Caterpillar, RR and INIO — along with support players like FLS — are sitting right at the intersection of old-economy reliability and new-economy demand.
That is a combination I find pretty hard to ignore.
Do your own due diligence, size appropriately and know your levels before you step in. But this one is on my radar, and I wanted to make sure it was on yours too.
Geof Smith
Geof Smith TradingÂ
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P.S. 3 Stocks Getting the Bulk of Wall Street’s Buys This Week
More than 60% of tech stocks are practically in a drawdown.
On many of these names, Wall Street stands to lose billions if they drop any further.
It’s why I’m not surprised they’ve begun triggering massive buy orders to send certain stocks higher over the next week or so.
Fortunately, I caught three of these names and I’ll reveal them live at 3 p.m. ET today.
Of course, I can’t make trading guarantees here…
But shadowing Wall Street’s undercover buying activity has been a core pillar of my trading career.
And today, I’ll share three names that are set to see the bulk of those undercover buys…
As well as how I plan to go after them in the coming days.
So if you’d like that…
