Trader Mike's Notes
This has been dead money for the last 12 months. The positive side of that is that it's built a nice long base to lift off from. I really like the "Calm After Storm" plus "Non-ADX 1,2,3,4 Bullish" combo it's showing today. It has also (essentially) filled the gap from last week's earnings report. So the risk reward seems pretty good to me here with a stop loss around 255 and an initial target of 300.
This is sitting at an interesting spot after last week's Amazon partnership. I'll almost never buy something this extended -- it's up 40% since Friday. At the same time one could argue that there's still room to run since the all-time high is over $146. I could easily see last week's gap holding and the stock just drifting higher. And the cherry on top is a looming earnings report next week. As much as I'm tempted to get long I may have to wait for the dust to settle after earnings.
I noticed this on the "STB 50 Bullish In-Play" scan tonight. An Expansion Breakout from a Bollinger Band Squeeze will always get my attention. Plus this space (also see UPST) and many Fintechs have been hot lately. i might jump in this tomorrow (with a stop loss at today's low) if doesn't gap up.
Breadth remains pretty bad and this is one of the easiest ways to see that fact. IWM broke its 200 DMA today for the first time in almost a year. It’s also worth noting that the % of stocks above their 50 DMAs sunk to 28 today. So that’s almost down to oversold levels. It’s kind of amazing that the larger cap indices continue to levitate near all time highs with so much weakness showing in the market as a whole.
I really like this pullback. Saw this on the “Calm After Storm” scan today. It’s got deeply oversold stochastic and found support today at its lower Bollinger Band. It would be perfect if it were above its 50-day moving average but we rarely get perfect setups. I’ll likely be a buyer if it can take out today’s high.