We had a rockstar day yesterday, with gaming and Metaverse leading the market, helped along by the $QQQ and $SPY. It was kind of a turn-around Tuesday, which started in a down-trend and ended up an a high. As Alex mentioned yesterday in the Morning Game Plan our focus was on the Metaverse, and the strategy paid off. When the $QQQ woke up I also got involved in $AAPL in anticipation of this stock joining the Metaverse territory. The EV sector was also on fire, and $TSLA participated, trying to get out of its funk. Another sector which I am hopeful will get its act together is the $XBI which has been bleeding for the past 2 weeks, and yesterday it showed it has a chance at a reversal. Historically it is the best period for the bio tech sector, but it has under performed, maybe we can catch the beginning of another active sequence in this sector. We are trying to hold a portfolio in the past 2 days since the market shows resilience in the face of inflation, crypto plunge and climate worries.
This company has been a bread winner since its earnings call last week, as our options increased by more than 10 fold. Then we entered common stock and held it close through yesterday’s high of $120.83 because it held its earnings gap all the way through. I am flat out of stock, I am still holding some call options for this Friday as it is heavily extended now. This is a move which can make someone’s day or week and these are the kinds of things we are looking to push you towards. Using technical analysis together with news you can be in the ‘hot’ stocks which make moves that can move your portfolio significantly higher.
Since $FB has announced it will be rebranded into Meta, the Metaverse madness started. This goes hand in hand with NFTs and altcoins, and any other companies looking to join the new universe – among them is $MTTR. Matterport will collaborate with Facebook AI Research to assemble the largest-ever dataset of 3D indoor spaces, which is still in its nascence, but this news pushed this stock into the clouds and we participated. This stock made a new all time high yesterday, breaking the downtrend in which it has been since its IPO. Despite very weak earnings investors saw past the losses and found its involvement with the virtual universe more important. Two days ago when it broke the down trend we got involved in this stock and it has paid off. I am still involved in it and I also have call options for December and January, as this a future type of play.
As I told you before this is one of my favorite stock to trade and yesterday it made a move which I could not ignore. It is still under the 8 day EMA but it managed to have its first solid green candle since last week and it managed to stay above the 21 day EMA of $1039. I trimmed along the way and I am left with half of my stock into today. I also have a call spread which I bought last Friday, which should be maxed out. I am staying tactical when it comes to Tesla since it had an impressive run in the past month and a half. At the same time the EV sector has been on fire in the past week and $TSLA is the only real player out of the bunch. If it gets above $1067 it can be in play for a move toward $1100, however, if it does not manage to stay above the 21 day EMA it can break a lot lower. Take care and have tight stops because it can be a wild one.
I mentioned the $XBI sector in my introduction, and I would like you to pay attention to it today, as it can finally get out of the downtrend. I am involved with some call options for next week and the week after in case it decides to wake up. Today I am looking also at $AAPL and how investors react to its possible involvement in the Metaverse. $FB should also be a focus because the very catalyst of this universe has been under-performing. For more detailed tactics you will have to read Alex’s Morning Game Plan, as there he details exactly our tactics and all the stocks in which we are involved or looking to be. Thank you for reading my Daily Charts and if you have questions or ideas please don’t hesitate to contact me directly at [email protected]
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