Trading IBD Stocks

[PuddinHead42]

Speculation Celebration.

There are a lot of spec/meme stocks going crazy. That will eventually be a very bad sign, but it is still young. Nuke stocks shooting up. Quantum stocks shooting up. Crypto stocks. All sorts of crazy stuff I keep seeing. There will be a time to pay the pauper, but until then, I am going to have a little fun and test my luck or skills, but mostly luck.

I am mitigating risk buy using small positions and frequent stop losses. My default position sizing is 1/8th of a full IBD position. Sometimes I add some if I have a profit margin.

Got stopped out of HNGE with tiny gain.
Been hanging onto ETOR through an ugly decline, up last two days, added tiny today.
I bought MNTN with the hopes of a long slow climb or an IPO breakout where I could add. Got lucky and it is up nice. This completes with TTD, which I like a lot, but is digging out of a hole right now. I thought about a buy-stop at $25, as it looked like that might be an IPO base, but I have not heard IBD mention it and MarketSurge is not recognizing it.

SERV, I figured this would pop every time Elon says “Robots”. But it really just does the street delivery robots for food delivery. Probably not a big moat and just looking to see what happens if it makes it back above $12.24. Have a stop loss in that got close recently. This is probably junk.

Yesterday I got silly and bought SBET, CRCL and RGTI on crazy pops. SBET dropped 13% today but I decided to hold, only ended down 2.63%, which leaves me up 0.83%. CRLC is up 5.4% and RGTI up 7.2%. Again small position. Not stop losses on these yet.

RGTI had a strong breakout from a stage 1 cup with handle. What could go wrong.

IONQ and QTS are lining up for technical breakouts if anyone wants to try some buy stops. I am pretty much out of cash in accounts where I would be willing to do more of this. I would probably be better off selling SERV and using a buy stop on one of these. Hmmm.

ACHR has a base that can be played, very near breakout. JOBY already went to the moon (sort of rivals).
GLXY is about to break through an IPO base.
STEP broke above resistance.
SMR just above resistance.
AIRO has a clear buy point of recent resistance.
CAI has an IPO base and had a big swing day today.

My big mistake would be to sell something stable to raise cash for more of this craziness.

This is probably a sign of the end, so beware. @Lakedog posted that data from Erick Krull, likely revisit the 50dma before Sept 1. Lots to Tarriff fun lined up before then.

[PuddinHead42]

@buynholdisdead

Picked up Five has blue

IBD says we did good…

AI plays Vertiv (VRT) and Astera Labs (ALAB) made bullish moves, along with Toast (TOST), Construction Partners (ROAD) and Five Below (FIVE).

I have a buy-stop for ALAB above the Darvas box.

[buynholdisdead]

How deep are you setting your stops Pete? Let’s say you take a 1/4 position, do you keep the same stop as a full position? How are you thinking about that? I would think the reason you are taking 1/4 position is because of the ATR?

[buynholdisdead]

Nice bull flag on RBRK. I expect this to take off again.

[buynholdisdead]

Picked up a half position on GLXY a new ipo just coming out of base.

[PuddinHead42]

@buynholdisdead

Nice bull flag on RBRK. I expect this to take off again.

What is your trigger, the downtrend line?

@buynholdisdead

Picked up a half position on GLXY a new ipo just coming out of base.

Nice.

I sold SBET and SERV today. 16% loss on SBET slightly mitigated by 8% gain on SERV. I am using the money to put a buy-stop on IONQ

[buynholdisdead]

@PuddinHead42

What is your trigger, the downtrend line?

I am holding a full position, I will add if it goes over the 100 dollar mark.

[PuddinHead42]

LPLA is a very strong stock with very good growth ratings. Breakout Friday on +54% volume. I plan to buy it Monday, did not see it Friday because I did not go through all my lists ;-( Stop loss will be below the box.

[PuddinHead42]

@buynholdisdead

How deep are you setting your stops Pete? Let’s say you take a 1/4 position, do you keep the same stop as a full position? How are you thinking about that? I would think the reason you are taking 1/4 position is because of the ATR?

I don’t have a hard rule, I usually look for a recent low point. I recall Webby and also Erick Krull talking about big runs. They would often put a stop loss at the low from “a couple days ago”. Sometimes I try that.

Here on CRCL it is just below $200, which is below the low of that big up day where I bought it. The time before, I set it at the bottom of the low of the buy day, but that was too tight (but worked). Buy using “low from a couple days ago”, it kind of builds in an ATR factor. Sometimes I watch closely and wait a couple days before setting the stop loss (but since I am no longer online in the morning, I need to tighten that up).

[buynholdisdead]

I am setting the stop 15% below my buy point. Since it is a quarter position, and I take a 5% stop on a full position, I figure that 1/4 position my risk will actually be lower with a 15% stop. I could actually take a 20% lower stop and be at the same risk level.

[buynholdisdead]

Keep an eye on Sezl. I think it is going to bounce off the 50sma and resume it’s uptrend. Could be wrong, but let’s see.

Also keeping an eye on TSS.

IONQ is looking to come out of a cup and handle.

[buynholdisdead]

Picked up TSSI today coming off the 21EMA. Picked up a half position and giving it 7.5% stop.

Picked up CRDO coming off the 21EMA. I thought it was extended so I sold it. Lesson learned, do not sell your leaders. Picked up half position and giving it 7.5% stop.

Sold my HLI and AS. I do not see either as leaders and needed some cash. I am starting to think if they are not leaders, I do not want them. Just stay in cash.

[buynholdisdead]

I also picked up QBTS with a half position as it was coming out of a flat base.

[PuddinHead42]

Some might like PANW, bouncing off 50dma and back up thru 21dma, all after testing 200dma. Vol +72% at this time

I picked up LPLA with a buy stop in the buy zone then it faded, so I sold at 3% loss. I too may sell AS. SHAK is also a weak holding and ROAD bounced of 50dma, but willing to sell for better options.

CRDO is tempting, but I like the vol on PANW. I am strongly considering TSSI, thanks. DASH bounced off 21dma. I added small to META after move back above 21dma.

I had a buy stop on IONQ that barely missed before it faded.

ALAB 19% gap up, can’t find news, but huge volume, going to buy some.

[buynholdisdead]

I am keeping my positions in the strong movers at the beginning to 1/4 or 1/2 positions because their ATR’s are so high. I kept getting stopped out. But I need to have strong rules, so I do not hold one that collapses. That is how I am playing it right now. I bought a full position in Alab on 7/7 before I had these rules in place.

[buynholdisdead]

It looks like QBTS dropped towards the end of the day. Unfortunately, I wasn’t watching because I had some other things to take care of. Let’s see what happens tomorrow, but I might be getting out.

[PuddinHead42]

I ended up selling AS and SHAK and using some of the money to buy PANW and ALAB (1/4 position each, may add today). Still holding ROAD, but it is my weakest stock right now. I bought LPLA with a buy-stop while I was out but had to sell it because it reversed down afterward. I saw a number of stocks that started out up but reversed down. Not a great sign.

[buynholdisdead]

I wonder if CRCL will hold the 21ema or slip under it. I am keeping an eye on it.

[buynholdisdead]

Sezl is sitting on the 50sma today.

[buynholdisdead]

Dave is sitting below the 50sma and also below the 200 dollar mark. Waiting to see which way it goes.