Does Beyond Meat ($BYND) go Beyond $100? (January 10, 2020)
BYNU
I am coming back to Beyond Meat ( NASDAQ: BYND ). This is a stock that we have been all over this week since the stock broke out here on Tuesday, above the 50. It is a really, really tight volatility squeeze. I have talked about this before, I believe even in Chart of the Day, the free video here, with a super-high short interest, about a third of the float short. Good news on the horizon because Impossible Meat is too small, they’re just not big enough to handle a big contract that McDonald’s ( NYSE: MCD ) wanted to do with them so that kind of leaves the field wide open for this company.
The stock was up way over 200.00, at one point almost 240.00 I think; that was too frothy, that was just stupid. I made some money on this stock on the way up but I sold way too soon, that’s for sure. To be honest with you, I am not a true believer in anything, in Tesla ( NASDAQ: TSLA ) and Beyond Meat ( NASDAQ: BYND ), any of that stuff that some of you guys think is a religion. I can’t hold a stock through a swing like this that goes up and comes down in 5 or 6 days, 31 percent. That is not something that I can do.
You look back here and say, “Oh yeah, you just buy this here then you just hang on to it.” These are big old swings. In one day, from the top of one day to the bottom of the next day to where it just opened up, a 32, 33 percent swing; that’s pretty nasty. And then in just 5 trading days later it’s up 60 percent. It’s fine if you held this stock all the way through, good, I am sure you are really long Bitcoin too. I like this kind of pattern, where the stock is predictable. It is predictable and understandable; $80.00 was the top of the range here that was right where the 50-day moving average was. The stock broke out now and it is moving in on $100.00. That would be 25 percent, from 80.00 to 100.00. And you will say, “Well, what’s the real difference?”
I will tell you what the difference is; this is really predictable, this is not, this is just all over the map. So when you see a trade like this, this is a time to really trade this with some degree of confidence. You still want to be prudent about it, don’t just go throw everything at it. This is a stock that should even go higher from here. And once it breaks through 100.00, look, they report earnings on the 27th, so there are still a couple of weeks left. Once this pushes through 100.00 there is no telling where this thing will go before they report earnings but I just suspect that it will go a lot higher.
So if it were me, I would be long. And I would keep a stop just a little bit below Friday’s intraday low of 90.25; keep a stop about 89.80, 89.90, something like that. That is a reasonable stop and the only way you will get stopped out is if this rally fades. And in that case, you want to be stopped out.
Free Chart