Today is my last day spending mornings at home recovering from minor hand surgery. Friday I start back at my Hot Yoga, so no more morning trading for me.
In one last foolish barrage of buying, I did the following today…
Bought 1/4 position in NXT. It is breaking out on strong volume because the house is leaving in the solar credits the senate put back in for certain US companies.
Good growth ratings. +83% vol at this point. RS94. Had a good shake out in the right side of base. If big boys sold out because of the solar credits going away, then they need to buy it back now that there is certainty they will remain.
Add my last 1/4 position to KBWB as it continues to be strong in the buy box. Vol is above avg, so it is not just home traders driving it up. There is lots of deregulation coming, all banks are moving up. Look in that space for opportunities, but many are past buy zone.
How about the taxes on solar companies are those out to? I am a little leary of investing in solar and drug companies (until Trump shows what he is going to do) Also we have the tariff date coming up on July 9th. Might be a good time to have a little cash on hand in case we get a drop.
I should have googled that. It looks like they dropped them also. Good job Pete. We might have to wait till it is finalized before we know exactly what is in it.
I feel really bad about this. I saw the upside reversal from the 21dma and was going to post it here. I did not buy or post. Let that be a lesson to us, look for a big upside reversal in a strong stock and buy it!
Look at this Pete. ALAB. It is sitting on the 10, 30, and 40 sma on the weekly chart. The thing I like about it is if it goes either way you will know right away whether you are right or wrong. The stop can be set with a 5% stop and the odds are in your favor that it will go to the upside. It’s in a flat base and the volume is drying up. I bought some yesterday.
Downside reversals to watch: SHOP, TOST, HOOD, RDDT, SPOT, CVNA, AFRM, DAVE, SEZL, AEVA. This is interesting and perhaps unsettling. Another step in a slow rotation out of high-fliers? QQQ up .24% while IWM is up 1.02%
TOST did breakout and my buy-stop hit, then it reversed down. Bummer for me.
Sounds like it could have good prospects, but way below IPO price, so I would approach it with small buys and tight stops while you wait for it to build an IPO base.
I was thinking CRDO was looking decent considering how so many other leaders had downside reversals today.
I was really tempted to buy CHEF yesterday. Glad I did not.
SOFI has been very strong and just moved above a cup-like base that was not recognized by MarketSurge. Maybe because it was about 50% deep. They recently announced that they will somehow provide access to private market stocks (like SpaceX) to the common investor with investments as low as $10. This would be very exciting and could drive the stock further. If they can do it, can HOOD?
Decided to sell my IBD trading shares of MELI. It is not performing well and was down to a 0.7% profit. Had not built up a big position after selling the previous breakout at a good profit. Happy with myself on these trades.
It doesn’t look extended to you? Don’t get me wrong I still like it but I would like to see it pull back to the 21ema. It’s 10 % above it and 36% above the 50sma. I am thinking we get a pull back.
I could buy that it is in a bottoming base. So, your waiting for the breakout and a hold above 50dma?
ALAB is hot today, and ready to break above a “consolidation” that could be like a Darvas box, but not near 52 week highs, but box does look to be 3 weeks or more. Also, living above 50 and 200 and the 50 is about to move over the 200.
Some other stocks that are moving above recent highs or bounce above or off trendlines on some volume: RBRK, ANET, CRDO, XBI, OSI, TOST.
USFD has a tight flat base it is above to breakout of.
DKNG has a stage one cup with handle to watch.
CAVA continues to look good coming off a test of previous lows around $71. I have be accumulating for a long-term position in search for a 10 bagger. Looks like its low will be above the 50dma after dancing with the 50 for a while. It has broken a downtrend line. I will add more today.
MMM is a turnaround story that I have faith in due to new CEO. It is about to breakout of a stage 1 consolidation, but EPS reports in 9 days, so dangerous.
Check out MNTN, new IPO mentioned on Cramer last night, so it spiked and is off the highs. It is in the digital ad space and track if you use your phone or computer to respond to an ad inserted in streaming TV. Today’s high could be a pivot point if it consolidates.
I believe it broke out yesterday when it went above the 50sma so I bought it. Today it sunk back in but did not trigger my stop. We will see what happens.
I bought alab on the 7th and put my stop below the 200 day. With all those moving averages coming together and the volume going down I decided to buy it because the risk was so low and well defined. If it breaks the 100 dollar mark tomorrow I will buy some more. It’s tried it twice and been rejected.
A comment out of the blue here.
ALAB, indeed. Strong showing today on volume. It’s not far off from having charted a three weeks tight pattern for the previous three weeks before this latest pop upward. Trading tightly nevertheless. In addition, the 50 DMA just crossed the 200 DMA, suggesting strong trend momentum (if you think there’s anything to the so-called golden cross theory/pattern [which I believe there is from studying the charts of big winners.]) One more positive data point to consider. I’m looking to pull the trigger if’n it hits 102. Or 101.92 to be precise. I think that’s a solid strike price based on the chart. I bought it last November and sold it in December for a decent gain by IBD standards, but for about half of what it ultimately did from 100 to 143 at that time. Got scared on a pullback and cashed out too early. I’d like to do better this time.
I’ve been keeping tabs recently on some of the quantum computing stocks. They have decent looking charts at the moment. In no particular order:
IONQ
QBTS
QUBT
RGTI
Meanwhile, Astera Labs stock leapt 8.2% to 99.86, rebounding from the 21-day, 10-week and 40-week moving averages, as well as breaking short-term and long-term trendlines. That offered early entries, with 101.82 also an entry. ALAB stock, a 2024 IPO, is a relative market cap minnow at $16.45 billion.
No volume on ALAB this morning. You know how Bill O’Neil advised +40% above average volume as a buy signal on a break out. Webby questions the legitimacy of volume metrics these days, but nonetheless.
