Week 43 recap:
Our watchlist from last week was AMD, MSFT, META, COIN, AAPL and from that watchlist we streamlined our trades into AMD, MSFT, META and COIN.
We succeeded in trading AMD, even though I have a bullish analysis before the earnings, I managed to trade it to the downside last Wednesday, October 30, 2024. It is important to react to what the price and volume of the stocks tells you and not what you thought.
I tried to trade AMZN last Friday, although this was not in my plan, and unfortunately resulted in a loss and wiping my gains from the previous week’s trade. Since the earnings report was good, I was looking for continuation and possible breakout to that $198 resistance level all the way to $200, however the volume was not enough to push it up further.
That AMZN trade humbled and reminded me to watch out my position size next time which is part of risk management.
Maybe this week 44, we could see a breakout of AMZN in sympathy with the NVDA catalyst last Friday, where this stock is joining Dow Jones Industrial replacing INTC.
Here is our watchlist for this week:
PLTR – I am bullish at this stock. The revenue as well as the net income is increasing year over year. I am looking for a breakout heading to $50 on this one. I think if the guidance is strong, this is enough to make an advance from that said level.
SMCI – This stock was tanking and showed weakness right after Hindenburg Research disclosed their short position because of some accounting red flags and undisclosed related material information. To make this worse, last week, their auditor E&Y resigned from the company. It will release its earnings report on November 5, Tuesday right after close. Last Friday, this stock closed at $26.05. If this stock rallies back to $30 right after earnings, I will scalp this all the way to $35, other than that, I won’t touch this. If the premium of 35 and 40 strike calls are within my risk appetite, I will definitely make a bet on this contract.
ARM – Bernstein downgraded this stock but who cares. All we know is this stock keeps beating the estimate from the past reports and I think this will bounce from its 50 EMA level so I am thinking of a 160 strike call on this one.
ELF – This stock is trading below the 50 and 200 EMA already and has been in trading sideways thus creating a strong support base at 103-105 level. I’d rather wait what the earnings result will be before trading this, but in my opinion, this is primed to start for an upside trend going to $118.
VST – This stock has been in an upside trade since last February of this year. Everyone is bullish now in nuclear energy play due to the power demand of AI. I will buy this stock at $108 if ever this level will be revisited. This stock closed last Friday at $119.51 – always buy at pullback, remember that.
DDOG – This is a software cloud based monitoring stock and everyone is bullish on this one. I will be playing on the other side instead. I am looking for a $105 – 110 retest once earnings release. It closed last Friday at $123.26. Let’s see if 100, 105 put strikes will work out.
NVDA – NVDA replaced INTC in Dow Jones Industrial and I am looking for a continuity on Monday. I think and in my opinion that this stock will be trading at $150/share before this week ends. I bought some stocks last Friday during after market the moment the news came out. Let’s see for more upside price action this coming week on this monster.
I’ve been buying stocks in some of the companies that I am not mentioning here and sometimes I post my analysis in my TradingView platform. Feel free to view my trading ideas and analysis here at TradingView.