Hey everyone, welcome back to another Sunday Scan.
Last week’s Traders4ACause Conference was incredible. Between the speakers, causes, community, and events, this year was special. It was great to meet so many people in IU and from all over the world. Until next time!
It’s good to be back in the markets this week. There are tons of bio names and small caps running. We will go over some of the biggest runners, and then Emil will jump on to share his main watches.
Video Scan and Game Plan
The Playback
DRUG huge move on a % basis, but if enough of the float gets locked and it’s just action between shorts, longs, and funds then it’s more about the action from leg to leg and tension intraday than the %. Instead of higher the better on the front side, it becomes higher the thinner – and that’s how these massive moves happen.
NUZE same idea as DRUG, low float, crazy volume, lots of shorts, and steady enough move to avoid scaring shorts or longs until a real parabolic relative to the prior legs happens.
SMR AI energy theme in full play currently. We saw what CEG and VST can do when money flows in and those are large caps. What happens when that money goes to much smaller names? Big moves.
FUTU China names are fading back until the government announces the next round of stimulus. Also potential tariff wars also hurt these names that import a lot of items to the US so extra pressure. Big inflection point here for either next leg up or potential round trip.
ASML mistakenly released earnings and that caught the sector off guard. Sometimes it’s about speed of finding a name to jump on and not picking the perfect name to play when a sector move happens.
NFLX gap up on great earnings. Lots of names are having large moves after releasing earnings so keeping an eye on all ERs coming up.
Main Watches
PATH nice base of the lows on a beat up daily, looking for a break above 13ish and a leg towards 16-17 area.
PYPL narrow range in the past few days has been good r/r for a long.
PLTR riding smaller MAs and long bias for a break of 45.
U lagger of tech basing nicely, may need a few more days.
TSLA indecision but still hanging out, if it manages to break 222 area maybe waiting e/r on 10/23.
SMR / OKLO nuclear AI energy theme stocks had a big run, now looking for consolidation before the next leg higher unless offering / news changes things.
TSM great earnings release and on watch for higher. They had a US probe headline to make sure they aren’t doing anything sketchy with China but if all good there then should be a strong mover up.
COIN finally playing catch up to names like MSTR after COIN was the weak one of the sector. Altcoins, BTC and activity is increasing into the election so COIN seems like be the new rotation name for flows. On watch for calls.
SMCI lots of bearish flow into next week’s 42ish strikes. Maybe news coming or key decisions to be made. Should have a large move either way on any news about accounting stuff or earnings.
PDD steady pressure and now consolidating. All about China gov stimulus headlines. If more stimmy then next leg up but if no news then not good for any China names into the election. Plan for both scenarios.
Great to have Emil on! Thanks for the scan guys.