Here’s how I find trading ideas – June 16, 2023
Dan Fitzpatrick at StockMarketMentor.com. It has been a heck of a week, everything has pretty much been moving up, it seems like, at least on the tech side. Though today, I’m doing this on Friday, today saw quite a bit of selling, but nothing big.
Everything seemed to be in a little bit of profit-taking mode. Whether it’s NVIDIA ( NASDAQ: NVDA ), it was basically flat, all things considered, but lower than the open. Microsoft ( NASDAQ: MSFT ) was kind of a reversal there. Tesla ( NASDAQ: TSLA ) held up really well. That was actually very surprising in a good way. Meta ( NASDAQ: META ) is still in trend but down in kind of a bad close. Google ( NASDAQ: GOOGL ) was also selling.
There is nothing wrong with anything that I showed you. Every single stock, I like most of them. I don’t own Google ( NASDAQ: GOOGL ) for a lot of different reasons. But they are all doing really well. But of all the stocks that I just showed you there really isn’t an entry anywhere. If you want to buy, like, I want to buy AMD ( NASDAQ: AMD ). Okay fine, well are you want to buy it now? Why are you going to buy the stock now, that would be a real boneheaded move.
Is there anything magical about this chart right now, about this price range? Is there anything about this that kind of has you feeling like this is your opportunity to buy? I going, to buy it now because I think it is going to do that. Well, it may, in fact, do this, we just don’t know, but still, you want to buy the stock. You look at the weekly chart, it’s looking pretty good.
It’s in congestion right now. Okay, well right now is the only thing you have to work with. You can’t do anything yesterday. You can’t do anything next week. All you can do is, only do something right now. And so the question is, is this the time to buy AMD (NASDAQ: AMD ) right now?
This is just one example of a stock that, Hey, I would like to own this stock. Fine, but not right here, not right now. So what is one way that I do look to find tech stocks that might be at better opportunities? Well, the first thing I need to do is narrow my list down. Having a short list is a really good thing to do.
So ARK Innovation ( NYSEARCA: ARKK ), you know all about that. They’ve got a list of stocks, it’s an actively traded ETF and not really traded well. But they do have, what I would call, The Speculative Idea Stocks. Most of, which, don’t really make any money. Not all of them, like they had NVIDIA ( NASDAQ: NVDA ) on the list until, I think, January when they sold out. Back in January, they sold this stock so it’s probably not the best move that was made.
But the bottom line is, the ARRK ( NYSEARCA: ARKK ) holdings are a really good place to sort through things when I am looking for trade ideas, and this is exactly what I do. I pull these up and then I sort them according to the percent change today. Now, I can create other sorting tools, percent change for the week, or whether or not the stocks are above or below the 50-day moving average, and various other things.
But on these short lists, there are just 27 items, I can just go through these lists and I want to say, when the market has been sold today, again, it’s not bad, things just didn’t go up from the open. Mostly, they either stayed flat or went down and I can’t find any good entries. Well, maybe I need to look in a more specific place. Growth is the thing, what do we have?
So I sort this way and then I start flicking through charts, ( NASDAQ: CERS ), no, thank you, but no. This ( NYSE: RBLX ) is a maybe, not for Monday but I definitely want to look at this. Coinbase ( NASDAQ: COIN ), no, ( NASDAQ: VERV ) no. Tesla ( NASDAQ: TSLA ), I’ve got that on other lists, but I will go ahead and put this on. Unity ( NYSE: U ), definitely, we’ve been in this at Option Market Mentor for a while.
SQ ( NYSE: SQ ), no. HOOD ( NASDAQ: HOOD ), no. If you are looking for different things ( NASDAQ: ZM ), this, SQ (Block) ( NYSE: SQ ) is coming out of a base, I don’t know what it’s coming out of, nothing really. HOOD ( NASDAQ: HOOD ), base, not my deal, not now. If something is basing that much, the market has been running so well, where the heck have you been? If you are still in a base, you are not a bird, you are not going to be flying anytime soon.
With Zoom Video ( NASDAQ: ZM ), no. So far I’ve got 3 check boxes that I’m interested in. Exact Sciences ( NASDAQ: EXAS ), is a good stock. Twilio ( NYSE: TWLO ), no, ( NASDAQ: TXG ), ( NYSE: TDOC ), no, ( NASDAQ: TWST ), no, ( NYSE: NVTA ), no, ( NASDAQ: ROKU ), no, it’s interesting just because it’s ROKU ( NASDAQ: ROKU ), I’ll put that on the list.
And then VCYT ( NASDAQ: VCYT ), for various reasons, is one I will want to look at. One thing is for sure, this had a heck of a move today on this massive volume, so I would want to do more research on there. So then, Palantir ( NYSE: PLTR ), we’ve done really well with that on Option Market Mentor as well. Shopify ( NYSE: SHOP ). I like. Crispr ( NASDAQ: CRSP ), no, I like the technology but not the company; ( NYSE: PD ), no thank you; ( NYSE: DNA ), no thank you, $1.90 a share is not my deal; Path ( NYSE: PATH ) is still kind of in a base. Intellia ( NASDAQ: NTLA ), it’s a spread that you put on your bread, no.
This one ( NASDAQ: PACB ), yes, it’s a possibility. Beam Therapeutics ( NASDAQ: BEAM ), no thank you. And then 2U ( NASDAQ: TWOU ), no thanks. And so what do I have here, these can all just go away. Now I will go through and say, alright, maybe I will set an alert here at 43.00 just because there’s been a lot of pain in this chart, I’ll just watch it for a while. Tesla ( NASDAQ: TSLA ); still waiting for a pullback. If you are long the stock, stay the stock. Stay there if you are not, it’s probably not the best time to be buying. But I do say that the stock goes higher. Most likely the next stop is 300.00, it’s just not a great entry here.
Unity ( NYSE: U ), the great entry was earlier this week when this broke out a pennant pattern here. Now, it’s looking to me like it’s a tombstone doji. I would want to wait for a little pullback, though you can see these massive skyscrapers here. Green skyscrapers, that’s buying pressure, that’s institutional buying, so this is going higher, I just need to see a better entry.
This one ( NASDAQ: EXAS ), is definitely, obviously going higher but can’t buy it here. ROKU ( NASDAQ: ROKU ), no. I would actually take that off at this point. And then Veracyte ( NASDAQ: VCYT ), there is nothing really interesting about this either. Palantir ( NYSE: PLTR ), is definitely, looking for more of a pullback. We look at the weekly chart, this has virtually nothing but blue sky above, but I wouldn’t buy it here.
SHOP ( NYSE: SHOP ), no. I couldn’t buy it here but man I sure would like to see it on a pullback. And then, finally, Pacific Biosciences ( NASDAQ: PACB ), a nice trend and plenty of volume. I would need to look at this in a little more detail. This kind of rising wedge pattern is a little concerning to me because, typically, on this kind of thing, ultimately the stock kind of falls out from the garden hose.
Anyway, this is how I look for stocks. And as I mentioned at the outset, there is not a whole lot to buy right now. Things have run up a lot and so it is risky to buy them. Or things still are really in the doldrums and so there is no reason to buy them. But if you are using this kind of strategy you are going to wind up, ultimately, doing really well because you are just saving time.
And you can do, actually, the same thing, like, with this AI ETF ( NASDAQ: BOTZ ). I am not going to go through it all here. But you can do the same kind of thing, this is what I was doing just ( NASDAQ: SOUN ) the other day, you can see the flags here. Go through all of these ( NYSE: DT ), ( NASDAQ: SYM ), ( NASDAQ: UPST ), ( NYSE: AI ), ( NASDAQ: APPN ), ( NASDAQ: FARO ), ( NASDAQ: CRNC ), ( NASDAQ: PRCT ), ( NASDAQ: ISRG ) and doing, literally, the same exact thing. Anyway, that’s all I’ve got for you.
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