This Week in Episodic Pivots February 11, 2024
Follow these explosive setups to profits
This bull market cannot be stopped. The S&P 500 and Nasdaq indexes are at all-time highs… And if you’ve been following any company even remotely tied to artificial intelligence is ripping higher.
And our positions finally caught a bid last week. Especially Aeva Technologies (AEVA 0.00%↑ ) which popped 22% on Friday. Now, let’s not celebrate too much as we’re just back to above even. But our patience is paying off.
We want to continue holding our positions… And you should hold onto any position in an uptrend. Only cull the stocks going down in your portfolio. If you’re holding onto anything that’s at 52-week lows when the market is at highs, you better have a great fundamental reason. Because the market is telling you that the company is not healthy.
We are in a very strong bull market. The trend is your friend.
As I’ve said before, I hope everyone is playing the market and making some good money while holding longs in this rally. Remember, episodic pivots should only be one of several strategies you use for your trading portfolio.
Enjoy this rally while it lasts.
This week we’ll add another position to the portfolio.
SEMrush Holdings ( SEMR 0.00%↑ )
SEMrush develops a SaaS platform for marketing teams to build, manage, and measure campaigns across all mediums. Having a platform like this is essential if you’re serious about improving your online presence today.
Last week the company got a boost as Jefferies assumed coverage of SEMrush with a buy rating. They believe the company’s increased focus on enterprise clients should lead to additional pricing power. That combined with a more disciplined expense management, they see faster than expected revenue and earnings expectations.
The increase in institutional coverage led to a spike in volume and a breakthrough its yearly anchored volume weighted average price (AVWAP). This is a very bullish move after a month-and-a-half-long consolidation period.
We can use a tight stop on this position too. I expect this to go higher from here, but there’s a chance it fills its gap between Tuesday and Wednesday. We’ll use $11 as a nice round number for a hard stop to begin with.
And that’s all for this week.
Happy Investing!