Stock Trends

The high flyers are flying again

Good morning,

The name of this equity report is “Stock Trends”.

Why?

Because in addition to providing a Hot List, highlighting other actionable long ideas, and calling out stocks to avoid, I want to make this report useful to subscribers who might not be stock pickers. And that means making sure you are aware of what key stocks or groups of stocks are doing, especially those key to the broader market story.

There are two such “stock trends” that I think are especially important to be aware of right now.

The first is that many of the “high-flyers” are really flying again. The stocks that went up 5 or 10-fold in 2020-2021 and then fell 80-90% are really working again. This is ironic in light of the MEME stock ETF announcing its closure just last week but it wouldn’t first time that such a closure has marked a potential contrarian signal…

VanEck Coal ETF delisted in December 2020

The second trend is that the gold miners I called out on Monday are breaking out this week. This is bullish for the commodity, but the real gains can often be found in the gold miners.

This week, I’ll highlight actionable long ideas in both of those spaces and review:

• Breakouts in the financials sector

• Recent movers on the Blue Chip Hot List

• and more!

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Beaten up high-flyers are flying again

Investors think Buy Now Pay Later was hot on Black Friday

Affirm is up 93% just in the month of November, but if you just look at the chart, there could be more to go. The base measures to $37 (about 10% more upside) but there is little to call resistance until you get to the mid-$40s.

COIN benefitting from the crypto rally

This isn’t the first time we’ve seen the high-flyers start to party again. I called out COIN breaking out in early July, just before it exploded higher by 25% in one day. After pulling back to the diagonal neckline and a rising 200-DMA, Coinbase has gathered momentum again and broken out to 52-week highs. The $114 level can be used to manage risk.

Even Peloton

You know the rally is broadening if Peloton is trying to get in on the action. The stock broke out to a 2-month high yesterday and the base measures to $7.22. Resistance at $6.80 makes that a more reasonable short-term target.

Could Roblox be next?