The great William O'Neil had a phrase he used to utter when he spotted a chart that he knew was under massive accumulation. O'Neil would lean back and exclaim, "That's not Aunt Suzzy buying!" That old O'Neil quote was the first thing that came to my mind when the chart of Palantir (PLTR) came across my screen a few weeks ago. The large volume that came into the stock starting in May is clearly not your "Aunt Suzzy" buying. Let me elaborate. When your cousin Mike opens up his Robinhood account to purchase a stock, his buying power is so miniscule that it's not going to make much of an impact on a stock. But when you see sky scrapper accumulation on a chart like we are seeing in PLTR, it clearly is funds and institutions purchasing the stock. The strong and consistent buying we are seeing in PLTR is a sign that funds and institutions like what they are seeing. Palantir's strong earnings and sales growth is most likely what is attracting such heavy buying.
Palantir is currently setting up in a potential high tight flag. I will be watching this stock closely in the coming weeks for an entry point.
Risk right. Sit tight.
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