As I mentioned in recent videos, I still think it’s worth being defensive into the quarter-end. By defensive, that means using lighter than normal positions until we get through the end of the quarter rebalancing, portfolio adjustments, etc. However, I am still noticing very strong price action in many names. Here are some notes and observations:
1) I’m glad AQST worked from the idea mentioned in Wednesday’s video (currently up over +15% today). The data came out strong after the close yesterday. Even if you waited for the data, the stock still gave you a chance to get in this morning.
2) I added to ARM this morning near its 21-day. I’m eyeing stocks that could have announcements during GTC (Nvidia’s big conference) next week. NVDA’s new chips will continue to use ARM’s architecture.
3) I added to DELL yesterday near its 21-day. As I mentioned in a recent video, I started with a light position near its 10-day and added near its 21-day. They could also benefit from GTC announcements next week and I like it longer-term.
4) SMCI is putting in a tight week on light volume. It’s obviously a super risky and very volatile name (not for everyone), but I’m sticking with my position for a potential announcement next week.
5) I really like the tight weekly closes in UBER. It continues to act well. I might add if it drops down to its 10-week over the near-term.
6) I like the tight week in NVO and the three tight weeks in NTRA. Again, tightness in charts is a sign of institutional accumulation beneath the surface.
7) CYTK was a name I traded earlier this year and did well on. There was a huge April 60 put write this morning, and there was large June 65 put writing last month that’s still in the open interest. It could be a level to trade off as I’m expecting it to move higher in the next few months.
I don’t mean to contradict myself by saying “stay defensive” and then give you a whole bunch of ideas. Please keep in mind that: 1) I am being open-minded. 2) Defensive doesn’t mean bearish. 3) I’m always going to work for you and pay attention to stocks holding up well. 4) After we get through the end of the quarter volatility, I am still bullish overall, and these ideas could work into next quarter.
I will discuss these in more detail in this weekend’s video. Also, for members who are fairly new to trading, please keep in mind that you can pass on these ideas or use light positions to help build your confidence. Thank you and good luck!