High Octane Special
Earlier This Week We Saw A Brutal Sector Rotation
Away from growth/tech stocks and into small caps and some defensive sectors. The small cap bullish divergence is good, it means that the rally is broadening which can fuel its further advance. I have talked a lot about that we need longterm breadth to confirm the bullish action in the major indices.
And this is what we saw this week, with Russell 2000 finally reclaiming the 200 day moving average for the first time since we fell into the bear market.
A Lesson In Placement Of Logical Stops
Growth stocks are hard to handle, they are volatile. They will provide very high reward at the cost of volatility. Therefore placing your stop losses at logical levels, is the most important when trading them.
Otherwise you will be stopped out without the stock doing anything wrong, and they will rip the day after. And you will sell at the bottom, and chase it at the top, when it is about to turn down again.
NVDA
Before considering any entry, you should look at if its possible to put a logical stop. Without that, you can’t enter the trade — because it will be a failure prone trade.
Two posts where I go in depth discussing this:
Our Observation About The Quantum Stocks Was Right
RGTI up 15%
IONQ up 11%
QUBT up 12%
QBTS up 8%
All setups from Tuesdays post, when the whole group tells the same tale — you should listen.
And RGTI Looks Super Clean
Since We Focused A Lot On Stable Normal Stocks Last Week
This week we will look at some crazy high potential, high risk, high octane stocks. Alot of high in that sentence.
All but two stocks, in this post are speculative to some degree, with high ADR and you should trade them with caution and reduce your position size significantly.
Don’t ask me about fundamentals our upcoming capital raises, these are pure momentum plays.
A Last Reminder
We will be raising prices on the annual subscription soon. It is now 25 USD/ month and about 40% cheaper than the monthly rate. This is low compared to peers on finance substack, delivering less comprehensive content.
The price will therefore be raised shortly.
And if you are a happy monthly paid — don’t miss to upgrade to the annual before the hike, if that is something you want, since it is much cheaper.
The price you subscribe to is always a lifetime price.
One Leading Group Of Growth Stocks Didn’t Get Hammered
I am not much for trading defensive slow moving recession stocks. Instead I focus on monitoring developing setups in growth stocks that are resting, and groups of growth stocks showing relative strength.
Because sector rotation does not have to last that long. And the stocks we are interested in, are growth stocks — because they produce the biggest moves.