blog

1st February 2024

What an incredible month January turned out to be, multiple fat pitches and opportunity to take advantage of; one of my strongest Januarys for some time. It was great to see others in the Gang really step up to the mark and lock in some large gains. Let’s find out what February has in store…

Some good news coming out of China as multiple names beat on earnings & Shanghai providing some indiction that it’s prepared to work alongside Alibaba ($BABA). However this continues to be diluted with the extreme pessimism and atrocious news cycle.

My Stance on China remains the same, it has immense potential for a huge play and I continue to ride this for a bigger picture play. The statistical odds are huge here and earlier in the week provided another opportunity to buy at over-extension to the downside. I’m keeping my eye of $BABA, $JD and $KWEB for potential adds ONCE we begin an uptrend.

J Powell came, saw and slapped the market around yesterday causing some lovely volatility and price action. My thoughts remain the same, can we see money flow into the more speculative assets? This rotation would provide us with a much broader range of setups vs January’s very good yet selective propositions. The price action from yesterday should have taken a lot of people out. Especially those who joined the short trade after the move had played out.

Statistically speaking, if we are to head lower here then we likely chop for the next 3-4 weeks in the indexes. I’ll be keeping an eye on the weekly to gauge where the indexes are heading and how exposed to the long side I wish to be. Large cap tech LONG is still a straight up avoid for me, not enough edge.

My focus points are China, Small caps, Biotech, Oil & Gas and shipping. With China being a top priority.

$IWM – Gorgeous slam yesterday as the Algos took full control, only to stop most people out and then gap into a reclaim. If this can rebuild and breakout to the upside in the upcoming days it will remain less crowded and more hated, exactly what we would want to see.

$KWEB – Has now taken out a staggering amount of longs as it breaks and sits below it’s huge weekly flag. Very very nice price action to disgruntled and turn everybody bearish. A reclaim on the daily and then weekly are the spots I’m looking for an add.

$NVDA (SHORT)- Waiting patiently for when the weakness starts to appear and/or it gets even more hyper extended. Don’t underestimate the power of this beast yet eventually it’ll coming crashing down. I mean it when I say the higher the better. (same thing can be said for $SMCI).

$PXLW – Delayed EP idea, on Tuesday Disney announced a partnership with PXLW and I quote from briefing.com

Walt Disney and Pixelworks (PXLW) enter into a first of its kind multi-year agreement to expand reach of TrueCut Motion Technology   (97.49)

In a new agreement, Walt Disney Studios and Pixelworks will bring a collection of TrueCut MotionTM graded titles to select home entertainment devices. These titles maintain a new level of true filmmaker creative intent by eliminating motion playback anomalies, while maintaining the desired brightness levels; all while preserving the authentic cinematic motion look and feel of the source.”

Now PXLW currently trades at a MC of $95m yet has $50.3m in cash and owns 78.2% of a subsidiary valued at $500m and they’re also expecting 40% Q/Q growth.A name like this can cause nausea to short sellers and that’s what I’m looking for. If it can maintain above $1.60 it’s in play for me.

$SBLK – A clean breakout and retest on the weekly, this name moves in huge bursts so it’s only slow until its not. Nice way to have exposure within the shipping sector as multiple names trade at cheap multiples and the charts look strong. This is something I can happily sit in risking weekly low would could grind or explode higher.

Side Note:

The space sector, in my opinion, is still likely one of the sectors that will “have its day”. With such a huge tangible market and exciting story behind it, I’ve had alerts set for months, both on price and news. This $RKLB offering is a great example of waiting for a good time to enter leaps. Ideally the reaction Is over the top and somebody fills me low premium calls at least one year out. Ideally more short term news hits and I can finally scoop.