๐ Navigating Choppy Waters and Eyeing Opportunities ๐
Last week, the major indexes remained relatively flat, presenting few clear setups for traders. The market experienced choppy conditions, making it challenging to identify strong trends. As we look ahead, patience is key; we anticipate that a few more days of consolidation could set the stage for potential breakouts.
Interestingly, there's a noticeable shift in capital flow toward small and mid-cap stocks, suggesting that investors are seeking growth opportunities outside the traditional large-cap plays. In this environment, we're focusing on identifying promising small and mid-cap names while keeping an eye on solid opportunities also on large-cap names as usual.
๐ข High-Volatility Thrill Rides ๐ข
CSLR (Complete Solaria Inc)
What they do: Complete Solaria Inc. is a small-cap company operating in the solar sector, focusing on residential solar technology and installation.
Why watch? ๐๐น Analysts suggest profitability in the last 2-3 quarters. Low float stock that recently broke the 2.30 weekly level and is now consolidating nicely on the 10 EMA. We're looking for a couple more days of low-volume consolidation before potential movement.
EOSE (EOS Energy Enterprises)
What they do: EOS Energy Enterprises is involved in energy storage solutions.
Why watch? ๐๐ Classic VCP (Volatility Contraction Pattern) on the daily chart. The stock is surfing the 10 and 20 EMA perfectly. A breakout over 2.80 could be significant. We're hoping for another small pullback before potential upward movement.
SWIM (Latham Group)
What they do: Latham Group is a manufacturer and marketer of pool equipment and accessories.
Why watch? ๐โโ๏ธ๐ Similar pattern to EOSE but less developed. The 6.85 level has been capping the stock since mid-September. Clearing this resistance could make a significant difference.
HCWC (Healthy Choice Wellness Corp)
What they do: Healthy Choice Wellness Corp is a company focused on health and wellness products and services.
Why watch? ๐๐ Super low float recent IPO. The company seems legitimate as a spinoff. The stock is trading in a tight range on the daily chart, potentially setting up for a bounce. High risk, so a tight stop is necessary.
๐โโ๏ธ Medium-Risk Wave Riders ๐โโ๏ธ
AAON (AAON, Inc.)
What they do: AAON is a manufacturer of air conditioning and heating equipment.
Why watch? ๐ก๏ธ๐ Stock at all-time highs in a hot sector. It's flagging nicely on low volume. A couple more days of consolidation could be ideal before potential movement.
TPG (TPG Inc.)
What they do: TPG Inc. is a leading global alternative asset management firm.
Why watch? ๐๐ผ 46% increase in one month, now resting on the 10-day moving average with low volume. It's also forming a falling wedge pattern.
GCI (Gannett Co.)
What they do: Gannett is a media and marketing solutions company.
Why watch? ๐ฐ๐ The 5.90-6.00 resistance has been blocking the stock since 2021-2022. If this supply level can be cleared, we could see a significant breakout.
FOUR (Shift4 Payments)
What they do: Shift4 Payments is a leading provider of integrated payment processing and technology solutions.
Why watch? ๐ณ๐ The 88 level is near and it's the last line of resistance before all-time highs. The stock also has strong fundamentals with increasing sales and EPS projected for the next couple of quarters.
YOU (Clear Secure)
What they do: Clear Secure operates a secure identity platform.
Why watch? ๐๐ Similar to FOUR, the 33 level is the last line of resistance since 2022. Clearing it could take the stock to all-time highs. Fundamentals are also strong.
MHK (Mohawk Industries)
What they do: Mohawk Industries is a leading global flooring manufacturer.
Why watch? ๐ ๐ Made good earnings in July, and since then the stock has stayed sideways. We need to clear 160-164 supply levels to start moving up again.
PATH (UiPath)
What they do: UiPath is a global software company that develops a platform for robotic process automation.
Why watch? ๐ค๐ Reverse head and shoulders pattern forming on this stock, bottoming in the 10-13 range. Clearing the 13 range could send the stock higher to recoup part of the open gap from May.
OMCL (Omnicell)
What they do: Omnicell provides medication management solutions and adherence tools for healthcare systems and pharmacies.
Why watch? ๐๐ Great earnings in August, but from there only sideways action, similar to MHK.
๐ก๏ธ Low-Risk Safe Harbors ๐ก๏ธ
CEG (Constellation Energy)
What they do: Constellation Energy is a leading clean energy company.
Why watch? โก๐ค The stock made a super gap up after a big agreement with Microsoft. It's a hot theme in the market. We're hoping for a couple more days of sideways movement before a potential new leg higher.
IEP (Icahn Enterprises L.P.)
What they do: Icahn Enterprises is a diversified holding company with various business segments.
Why watch? ๐๐๏ธ Last week, a federal judge dismissed a lawsuit accusing billionaire Carl Icahn of defrauding shareholders after a 2023 Hindenburg short report. The stock price is the same as in 2004, and this news could potentially change the trend. The stock is also creating a pennant on low volume.
ORCL (Oracle Corporation)
What they do: Oracle is a multinational technology company specializing in database software and cloud-engineered systems.
Why watch? ๐ป๐ Creating a pennant after good earnings at the beginning of September. The 10 EMA is catching up and the stock seems ready to break higher.
The stock market is a device for transferring money from the impatient to the patient. - Warren Buffett ๐งโโ๏ธ๐ฐ
great watchlist, appreciate the work -- thanks!