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New Leaders Are Emerging In The Stock Market
As the coronavirus continues to destroy the economy, trends have ended and new ones have emerged. In the stock market, there is a new leader: Data Dog ($DDOG) a cloud company. The company dazzled in earnings, which showed a very powerful breakout in its stock chart. Take a look at the RSI indicator above, showing pure strength, and a beautiful gap up making new all-time highs. This is not the only cloud company that broke out as Twillo ($TWLO) and Fastly ($FSLY) broke out as well.
The cleaner chart, in my opinion, is $DDOG, which I believe should be bought on weakness, look for this stock to continue higher in the upcoming months.
A couple of months ago I talked about a set of stocks that were making waves in the Stock Market . Since then some of these stocks have appreciated over 300%. Luckily due to technical and news events, these stocks are pulling back. As a result, I think it's a good time to start accumulating a position in one of the strongest: Fastly Inc ($FSLY). I believe this pullback is a nice buying opportunity. However. position your trades if it goes lower to consider possibly adding. I think this can be a nice long term swing trade.
My favorite stock to buy on this pullback is Virgin Galactic Holdings ($SPCE). As prior to this pandemic it had shown incredible strength going from $12 to $42 in just a few months before pulling back all the way down to $10. I believe once the pandemic recovers this stock will move back up quite a bit. Parabolic stocks with violent pullbacks tend to bounce back up before resting for a while. Just keep in mind for those bears out there the stock market is no longer the economy, as it is propped and inflated by central banks including our FED. It's really just an inflation measurement tool. Try not to be too bearish as governments don't like markets to fall.
On my last post, I recommended Twitter with a buy of $28. On Twitter, I live-tweeted my purchase and sold today. I held for about a month, but it indeed paid off, with a huge 15%+ move after reporting earnings. Bought $twtr on Friday https://t.co/33zYolufbV — Chart Learning (@ChartLearning) September 30, 2018 My new favorite, as I have posted about before is Spotify ($SPOT). The good news is due to market conditions it's pulling back. I am unsure where is a good price to buy as with every IPO, it really lacks price history since the stock is so new. I am currently monitoring the stock's behavior and may decide to purchase for a quick/medium term trade in the future. However, it's worth noting they are reporting earnings next week.