Swaggy's Top Stonks - Market Sentiment
Swaggy's Top Stonks - Market Sentiment
Swaggy’s Top Stonks. We compile and analyze data from multiple sources bringing you the top trending tickers from around the internet. If you haven’t subscribed already, please do so below.
Swaggy's Top Stonks
Together with... M1 Finance
August 19, 2021
Welcome newcomers to Swaggy's Top Stonks and thank you for subscribing. The last two weeks I went over every trending stock so far in 2021 and measured performance. Stay tuned for this Sunday's newsletter with the full report of how these stocks performed.
This Week's Letter
Market Update
A message from M1 Finance
Earnings SZN
Sentiment Report
Market Update
This kind of market is the type that really makes a man (or woman). Indices inching to all-time-highs day after day and yet many popular growth names from 2020 and early 2021 are still trading negative YTD. If your goal is to make money finding big moves in this market you are better off trying to hold water in your bare hands.
Recently, an entire assortment of growth-stocks and SPACs have been taken to the woodshed. A few newsletter issues ago we already decided that SPACs were dead. What's been hot lately? Other growth names in the e-commerce industry and payment-enablers. GLBE, DLO, UPST have been huge runners and continue to do so. The market is making it easy for us:
OLD growth names = OUT
NEW growth names = IN
Which growth names belong in each basket? That's for us to decipher, but I wouldn't count on certain Chinese stocks and a lot of growth names that got hammered this year to be down and out forever. At some point the risk will subside and they will hit a certain level of value where funds will begin scooping these up.
Although great companies make for strong long-term investments, I always remind myself that asset prices are predominantly dictated by the Fed, and not necessarily based on the company's performance. Yesterday's Fed minutes was a clear indication that even the thought of tapering QE, like they hinted might start sooner rather than later, can very much spook the market. Here's yesterday's intraday SPY chart, I've circled where the Fed minutes started and where my portfolio of swing-trades did a somersault into a lake of hot lava.
While the risk of tapering asset purchases and increasing interest rates was always on the table, it has now become closer to a reality. This could pose a continued threat on names that are trading at higher multiples.
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Earnings SZN
Here's some of the earnings action from this week.
RBLX earnings came in slightly lower than street expectations and the stock shed 5% the day after they.
GLBE out-performed with a beat on revs and strong guidance. The stock is up 10% this week. You can find a good read here on the company's model.
Walmart (WMT) posted a solid quarter and boosted their forecasts, however, the market was unimpressed and the stock price remained flat.
Krispy Kreme (DNUT) earnings missed guidance and the stock is now down 10% in the last two trading sessions.
Nvidia (NVDA) as usual, and expected, they posted a solid quarter and a beat on both ends. Guidance was strong and the stock is up 2% in after-hours (after being down 2% for the day)
D-Local (DLO) had stellar earnings showing more than expected growth. The stock is up 25% (!) in after-hours.
Sentiment Report - The Underdog List
The usual candidates are spiking in sentiment this week. Out of the short-interest stocks we have CLOV, WISH, AMC, and BB. Vaccine names PFE and MRNA were trending with more doses of vaccine-related news, and other growth names such as PLTR, SOFI, and BABA were also trending. Here are some of the names on my underdog list.
BlackBerry - BB
The last time BB really trended the stock nearly doubled back in June. The stock has since corrected itself, but saw an uptick in mentions yesterday due to being up 5%. For some reason BB has always followed the short-interest crowd and can pick up momentum in a heartbeat.
Robinhood Markets - HOOD
Robinhood's IPO was truly amazing as the stock tanked 15% only to nearly double-triple in a matter of days. After the stock ran up to over $85 it quickly dropped back. I mentioned last week that I might be interested in buying this name again in the $45 range should it ever get there again. It traded at $45 yesterday in after-hours and I will be keeping this one on my swing-trade list.
Upstart - UPST
I like the company Upstart (UPST) and see their potential. They reported stellar earnings last week which is being displayed by the near-doubling of stock price in just several days. In my opinion this is nearing the "meme" level and volatility will remain high. As of yesterday's close it looked like WSB was not as bullish at these levels. I liked the stock at $115, but at current levels this ticker is on my blacklist of DO NOT TRADE stocks, at least for the time being.
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