Looking for a potential turnaround? Check Palantir ($PLTR) (April 19, 2022)


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In a really crappy sucky tape, there are some things that are calming down a bit, at least to a point where you can watch them and look for some clear trades. One of them here is Palantir ( NYSE: PLTR ). Peter Thiel, one of my idols for various reasons, founded this company. They do business with both government and private enterprise so they have kind of got the whole thing covered; until Musk goes to Mars and then they will probably be doing business up there too.

IPO, you could see the big massive ride this is on but the initial print here was right around $10.00. Well, the stock came all the way down round trip and tested that $10.00 level. And by the way, this is something from the very top to the very bottom, over a 75 percent fall. That’s what happens with a lot of these high fliers. But now we have tested $10.00, run back up above the 50-day moving average for kind of an aborted breakout, and then now a pullback. And where is this holding up? Right around $12.00.

Now, this would be a very speculative buy right here. So if you are a speculator, buy. Keep your stop just a little bit below yesterday’s intraday low, 11.88. That is below the 12.52 50-day moving average. So you would keep your stop basically right where this line is, something like that.

Or you could wait, you could watch the stock and if it breaks out above this level, in other words, to a new April high, then that is when you would buy it. Or you could split the difference, you could take some right here, a small position with the stop down here so you are not risking, from a dollar standpoint, you are not really risking very much money at all.

But then, from a risk standpoint, on the other side, you are getting a partial position so you are going to get some capital appreciation. And then if the stock does break out and you are buying stock at that point, you are actually adding to a profitable position. And that is better than your initial entry, which could always lose your money right away.

That’s how I am looking at Palantir ( NYSE: PLTR ). It is, again, if you are buying it here you are speculating. I am just telling you, don’t let me see anybody on Twitter or anyplace else giving me crap for saying, “Buy the stock right here”. I am not saying that, I am saying, “Watch the stock”. I have given you a trading plan. If you choose to accept it this message will self-destruct in 15 seconds.

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