BIG PICTURE:
While I'm still firmly of the opinion that all the major US indexes are still in healthy up trends; I do believe that tech stocks are short term overbought and could pullback today. Notwithstanding, the $IWM on the other hand has yet to really take off as it has been stuck in a very tight range for the past 3 weeks now.
This could mean we see some selling/profit taking in large cap tech stocks which I rarely ever trade but mid and small cap stocks which I love to trade could be on fire today if the $IWM does go on to break out of the aforementioned trading range today! So as has been the case since I restarted posting my best ideas to my blog; I will continue to favour watching and trading long ideas and avoid shorts like the plague!
MY BEST IDEAS:
$NIO:
Float: 838.55m; Short Float: 15.16%; ATR: $1.30 and Avg. Volume: 111.62m
Catalysts: other than breaking out of a daily ascending triangle and being part of the hot, hot EV group; there is no fresh news catalyst that I can find
Bias & Plan: notwithstanding the fact that this stock does not appear to have any fresh news catalyst; it does not really need one to run big as it has shown by its recent price history and it also extremely liquid so getting in and out even with huge size is no issue with this stock. I am long biased on it and will be looking for it to get up to $15.30 today.
$NKLA:
Float: 130.30m; Short Float: 10.32%; ATR: $5.23 and Avg. Volume: 17.16m
Catalysts: spiked big yesterday after announcing its July deliveries data and is set to report earnings after today's close
Bias & Plan: this stock broke out nicely yesterday and closed strong confirming the double bottom formation around $30 support. With this stock's history of massive spikes and being part of the hot EV group along with $NIO; I'm looking for this stock to trade higher today. While it has major daily resistance at $40/$41.50; if it can break through these levels a gap fill back to $48's today is not out of the realm of possibility especially given the overall bullish market context!
$BYND:
Float: 54.11m; Short Float: 12.31%; ATR: $6.80 and Avg. Volume: 8.40m
Catalysts: spiked big yesterday after announcing expanded distribution and is set to announce earnings after today's market close
Bias & Plan: after being short biased on this stock for weeks anticipating that it will break down from the daily head and shoulders formation; I am now forced to switch long as beyond the fresh news catalyst yesterday; I know a lot of shorts are trapped in this stock and will be forced to cover today before it announced earnings this evening. I like it long above $136 and will be looking for it to spike up to $145 and maybe even $147.50 today.
OTHER POSSIBLES:
$WKHS, $BLNK
No comments:
Post a Comment