Off the beaten track

Good morning!

Yesterday I got engaged in stocks I did not expect since they made moves that peaked my interest. I am out of tech because I believe the $QQQ is extended, and I have no positions there. Unfortunately the reopening sector took a breather yesterday, but the move did not get me out of my stocks, as I am waiting for today’s signals to see if the move is finished, or if they can consolidate further. $TRIP earnings were disappointing and this can hurt a bit the sector, but the airlines $JETS are strong since the US announced open travel for all vaccinated people from the EU. Another off the beaten track stock made some after-hours move in the biotech sector, and this raised my antennas, so I will present it today. The move in the wellness sector had continuation and $MSOS paid off, trim and manage on the way. $COIN did what it was supposed to do yesterday and today I am awaiting its earnings call, which if it is positive it will max out my call options. Crypto land made new all time highs in $BTCUSD and $ETHUSD which also helped Coinbase in its upward move.

$FCEL Chart

Yesterday this small 2020 clean energy winner stock showed it has legs to stand on, and it touched some important levels as it went past $9.80 and $10.68. Now it has room to the summer’s high in the mid $12. Trim and manage your position.

$VLDR Chart

This lithium stock is in a similar position with $FCEL, as it had been strong at the end of 2020, beginning of 2021, and then it has been crushed. I picked it up yesterday as it had its Day 1 candle, but with a small position as it is still under some moving averages. The near term goal is for it to reach and get above $8.50, and then maybe I’ll add more to it. Take care with small stocks like this because they can be temperamental and show no continuation, therefore don’t have positions which can hurt is they trace back.

$MBIO Chart

This small American biotech, with a promising future in treating rare forms of cancer showed relative strength in the last sessions and yesterday in after hours, when the CEO announced he has bought 60k shares it went up ($2.5). They will present at the ASH conference and if they show that they are advancing in their research this company has plenty of space to grow. It has been on my radar for over a year. I don’t treat it like a classic stock, and I have been adding on weakness, even if it is under all the moving averages. This is a type of stock that moves with news, not so much with technical analysis, since people are still waiting to hear if the projects in their pipeline prove to be revolutionary. I have a sum I am comfortable to park for a while, and if it grows significantly I will trim along the way, but I plan to hold onto $MBIO for the long term. This is a concept kind of bio and if you want this in your portfolio, for the long term, it is a good choice, at a very low price, as it has a price target of $11.

I have not been in tech, or any of the big names for a while now and it has been a good choice. I took part in the $QQQ and $SPY rally, which I believe now they need a breather. There is no need for me lose capital there, but I am not looking to short them either since they are still strong. It is the same story with $TSLA, which I could have shorted yesterday, but the way in which it moved after the market opened discouraged me to do so. I just have bought a bear spread with Friday expiration, in case it wants to go down, and like this I don’t need to overcomplicate things, and participate in the downward move also. Unless you are very involved in day trading I suggest to stay away, as it can hurt your capital. Today I am awaiting to see the market direction as it has become a little frothy and now it can go either way. The volatility indicator, the $VIX, has increased significantly yesterday signaling a possible shift in direction, and I do not wish to give back capital. I did not get involved in buying any $VIX calls yet, until I see a clear trend forming.

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