The Weekly Selection: 02/19/2024
Vol 075: One stock to rule them all
Introduction
Investors,
Welcome back to another issue of “The Weekly Selection", where I take you through the week ahead, as well as reflecting on the past to bring together a total look at all things market related.
If you enjoy this content, press the heart on this post show support, or subscribe below to see more!
Obviously this week is a shortened week, for Presidents Day. Additionally to this being a short week, Wednesday brings NVDA 0.00%↑ earnings report, which has been highly anticipated as the earnings report to determine market direction for weeks to come. NVDA 0.00%↑ has been touted as the true market leader for almost a year now, and I cant help but agree, with monstrous margins + growth, as well as leading the AI charge that has taken the market by storm.
Indexes
Lets see where the indexes are heading into this pivotal week:
SPY 0.00%↑ first up like always. Weekly now starting to find indecision, closing red for the first week in nearly 2 months. ER season can be tricky, and I would have been surprised to see this close a strong green last week.
IWM 0.00%↑ was a hot topic last week. Pushing up to the very top of the range its been in for almost 2 years. I’m a huge fan of trading small/midcaps, so seeing this is a great sign, even if the primary indexes like SPY 0.00%↑ and QQQ 0.00%↑ pullback.
XLE 0.00%↑ is one of the better looking sectors this week. popping over the moving averages and tons of setups on the underlying stocks.
Quote of the week
"What most people don't grasp is what is possible in a bull market and what the average monster does. It's very common for a monster to go up 300%, 500%, 1,000% in a bull cycle. Now, late in a bull cycle, 2-3 years down the road, selling breakouts up 20% is a very good idea. That is a stale bull. But this early on, I'm trying to take these things to the finish line."
- Jim Roppel
This is a quote from last July, but I still think it holds true as now we are starting to see some bull runners go multiple hundreds of % in short periods of time.
Parabolic Trend Analysis
NVAX 0.00%↑ is a pharma company that for the last 3 decades, has managed to stay afloat by creating vaccines in exchange for government grants. They have been involved in the vaccinating of Avian Flu, Middle Eastern Respiratory disease and some others.
The key with this analysis is the environment. The economy was shutting down due to Covid-19, and that created opportunities for companies looking to cash in on vaccines. No matter how grim the market looks, there is always money flowing somewhere.
No revenues, huge losses, terrible investments within, egregious stock compensation packages, 9000% return. Sometimes it just takes a good environment to sent a stock to the stratosphere.
Past Performance
The performance of the newsletter last week was strong. NFLX 0.00%↑ was a standout, continuing after its ER gap. AMD 0.00%↑ also got some nice volatility this week, giving many opportunities.
The key this week was the gain → high stats. All of these stocks gave ample moves to make trades off of.
Charts
IOT 0.00%↑ I don’t see how this doesn’t run into earnings. Great looking daily holding firm above the all time high pivot.
ABNB 0.00%↑ first time on the selection in a while. Building out a nice base which it is now resting above. Earnings out of the way.
DUOL 0.00%↑ offering strong R/R here with earnings in a week and a half. Big grower showing up where it did last ER, despite consistent double digit beats on primary metrics.
I cant believe im putting this on my watchlist this week, but there’s a pretty decent opportunity on CLSK 0.00%↑ considering how well crypto is doing.
That’s all for this week!
IF YOU ENJOYED:
Like this post
thoughts on smci?