Trading charts for Thursday, March 2nd
I have another Substack newsletter called Jonah’s Deep Dives where I publish a weekly deep dive writeup (8,000+ words) on different growth stocks: deepdives.luptoncapital.com
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I run Disciplined Growth Investor on Seeking Alpha which is the combination of all my investment services but all on one platform for simplicity: seekingalpha.luptoncapital.com
Good morning and Happy Thursday,
Yesterday was another back and forth day for the markets but the most noteworthy thing that happened besides the 10Y yield hitting 4% was the fact that SPX and QQQ both bounced perfectly off their respective 200d sma.
I think you stay long stocks in your trading portfolio as long as the indexes stay above their 200d sma but you reduce exposure and/or add some shorts, puts or other hedges if they lose their 200d sma. I’m making a list of 5-6 stocks that would be at the top of my short list but assuming that most of them are in ARKK (including COIN DKNG ZM TDOC) it’s very possible I just buy SARK to keep it simple.
Still have a few more earnings reports today, we got SNOW and CRM last night which are headed in opposite directions based on pre-market trading.
Two big upcoming macro events that I mentioned yesterday…
Next payroll/jobs report is Friday, March 10th [click here].
Next CPI/inflation report is Tuesday, March 14th [click here].
My recent interview with Dan Ives…
Here’s my spreadsheet of the stocks with best reactions and gap ups from Q4 earnings, yesterday I added DUOL and today I added CRM: https://docs.google.com/spreadsheets/d/1qLy5c6Rq_MGvOT4LbChyaKT1P29j7uhutYo9XCmKLu8/edit#gid=0
Lots of stocks on the watchlist today, some are potential breakouts through recent highs or downtrend lines while others are pulling back to the 10d, 20d, 21/23d, or 50d which give me a nice risk/reward entry point because if that moving average does not hold my stop loss will get me out.
I’m still focused on the stocks that had the biggest gap ups and positive reactions to Q4 earning but now retracing those gap ups. Sometimes the gaps fill and sometimes they don’t — doesn’t matter to me either way as long as I’m buying above support with stop losses below 3%.
Last night TSLA has their investor day and they made comments about lowering costs and using less materials which is crushing several stocks pre-market including WOLF ON AEHR STM and MP so be careful with these names. I have no idea if they bounce but this could also spark some negative comments from analysts that cover these names thus creating a secondary dip.
Below the paywall is my current trading portfolio (16 stocks, ~64% invested) and watchlist (24 stocks with charts) including a link to my trading portfolio spreadsheet (with entry prices, position sizes, stop losses, win/loss rates). You also get links to my two daily Zoom sessions at 10:30am EST and 3:30pm EST where I review charts for both my portfolios plus my watchlist stocks and explain where & why I started new trading positions or closed out existing ones.