Note: We’re doing just a very brief M&S today (two days early) as we prepare for Santa’s arrival. Merry Christmas to those who celebrate! As a reminder, there’s NOT a regular issue next week (one of our two weeks off all year), though we’ll probably do a quick Movers and Shakers next Wednesday before New Year’s. Enjoy!
As for the market, not much has changed with our thinking since Monday’s issue—we’re still bullish, but we wouldn’t be surprised if there were some reverberations going forward from this weekend’s “new” virus worries over in the U.K., especially given how hot and heavy the environment is. It’s also possible the Covid stimulus shenanigans could bring about some worries, but we’ll have to see.
We’re still holding most of our winners but taking some chips off the table in names that have been running for a while makes sense. In terms of buying, we’re aiming to buy on pullbacks or shakeouts in leading names.
Looking ahead, early January is often tricky no matter the year given the many crosscurrents as investors book profits and reposition their portfolios. That could be exacerbated this time around given the wild year that has been 2020, though every year is different.
All in all, we think selective buying is still fine, but pick your spots and stocks carefully, while focusing mostly on managing what should be a good batch of winners in your portfolio.
SUGGESTED SELLS
FuboTV (FUBO) has gone vertical in recent days, which ideally will keep going, but there’s no doubt there’s some speculation happening. We suggest booking partial profits here and trailing a stop in the mid/upper 30s.
Outright sells:
Huazhu Group (HTHT) – tripped stop
Moderna (MRNA) – tripped stop
SunPower (SPWR) – booking a profit as the stock is a bit out of trend on the upside
SUGGESTED STOPS
Align Technology (ALGN) near 455
Axon Enterprise (AAXN) near 116
Avalara (AVLR) near 161
Canopy Growth (CGC) near 23.5
Carrier Global (CARR) near 35.5
Exact Sciences (EXAS) near 124
Freeport McMoRan (FCX) near 21
General Motors (GM) near 39.5
HubSpot (HUBS) near 355
Marvell Tech (MRVL) near 44
Norfolk Southern (NSC) near 225
Paycom Software (PAYC) near 410
Qorvo (QRVO) near 150
Qualcomm (QCOM) near 139
Quanta Services (PWR) near 64.5
Snowflake (SNOW) near 315
Taiwan Semi (TSM) near 94.5
Tapestry (TPR) near 26
Target (TGT) near 165
Zillow (Z) near 118