• T. Livingston

Stocks and Sentiment Roar Higher

Stocks roared higher this week as breakouts continued to work and growth stocks performed well. Solar stocks remain a leading industry group with recent IPO ARRY closing in on a new high and SunPower contining its steady uptrend. I sold half of my position in SunPower (SPWR) this week to lock in some gains and reduce my risk as I also added position in JKS and CSIQ and did not want to be overexposed in one industry. I also sold half of my position in GBTC. I really like the Bitcoin chart long-term, but the daily chart on GBTC had gone quite vertical. I felt the best course of action was to sell half to lock in gains and reduce the effect of a pullback. I will look to add to my position as another buy point develops while holding my reaming shares of GBTC and Bitcoin.

IPOs seem to be in fashion as we approach December. I sold CRSR as it went totally vertical this week. It can most definitively still head higher, but I like to exit while I can when I have such as large gain. Palantir has had an amazing November, running up from $12 to $34 very quickly. This is one that got away from me, but my belief is that I can always profit from a trade like this by studying it and being prepared for the next big winner.



I also exited my positions in BEEM, PLUG, BLDP, and CRM this week. BEEM and PLUG reached my profit targets and I sold CRM because my stop loss was hit. I sold BLDP on the heavy volume drop earlier in the week. I think it may need more time to develop a higher handle. I'm going to keep it on my watchlist for a future buy.

Moderna (MRNA) also had an amazing week, up more than 30%. I still like this one long-term, and debated whether to sell all or half of my position. I decided on the former as I have added more positions this week and did not want to have too many stocks to watch.

Tesla also moved higher and is acting like a true market leader. This is a stock I'm planning to hold for as long as possible (meaning as long as it acts right). True market leaders can go up much farther and longer than most can imagine and when you lose your position you're often left waiting for a secondary buy point that does not come. Because of its character, I'm choosing to give it the space I believe it deserves.



Along with CSIQ and JKS, I also added LMND and GRVY this week. Gravity (GRVY) is a Korean gaming company and I believe that is a sector that may perform well in the coming months. Sea Limited (SE) is another gaming stock that is closing in on new highs. It looks to be forming an ascending base, similar to Zoom earlier in the year (see here for blog post).

In addition to SE, I also have AMD and AAPL on my watchlist for potential buys. AMD has been consolidating quite well over the last few weeks while AAPL has been a bit of a laggard. However, it is a perennial favorite that is worthy of being on any watchlist as it can really get moving once some big money gets behind it.

From a contrarian perspective, sentiment is getting out of control. Bullish readings are at an extreme. Although I never make trades purely on this, I believe it is a warning sign to sell some positions into strength and lock in gains on some positions while you can. Remember, markets take the elevator down and every bull run ends badly.



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Full Disclosure: I currently own many of the stocks mentioned in this post.


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