Here’s the analysis on $MSFT $TSLA and $ORCL..in 8 minutes! (June 08, 2020)
MSFT QQQ MSFT AAPL TSLA AAPL MSFT ORCL
I thought I would give you a couple trade ideas, things that we are already in but they’re not really too late.
The first one here is Microsoft ( NASDAQ: MSFT ). This is a stock that is on our Growth Stock List, which is where I give you the stock, I give you the entry, I give you the stop and then we follow it. Hopefully, we just kind of hang onto the stock and let the profits build. The whole idea is not like just trade along with me and do everything I do.
You can do that, that’s fine but what it’s really designed for is to show you at least what I believe to be proper entry and trading methodologies. You can disagree and there are many different ways to trade profitably. The most important thing, though, is to be consistent in the application of a plan that works, a process that works. And so I am just kind of showing you mine and you can adjust, modify, whatever you want to do.
This is one of those stocks that are on our list. This is breaking out, it actually started to break out on Friday. You will see a little bit heavier than average volume on Friday. Not a big deal but a deal; so the stock had been squeezing. Then we look at the overall market because Microsoft ( NASDAQ: MSFT ) is a big part of the QQQs ( NASDAQ: QQQ ), actually the S&P 500 ( INDEXSP: .INX ) as well, which is a cap-weighted index, so we want to see the market in general going up.
But then we’ve got Microsoft ( NASDAQ: MSFT ) on a breakout here on Friday. I bought some calls on this on Friday and now those calls are up just 15 percent, which for calls is actually not that great but I will take it every day. So I bought this and the idea is that the stock is just going to keep going and my very, very, very short-term target is like $195.00 and then 200.00. Then we get a move today, this wasn’t a big dramatic move, it’s only a dollar. That’s kind of why I am showing you this, because this is not one of these, hey, see what I did. Don’t you wish you did that too? This is really one of those; see what I am doing and if it makes sense to you you can do it too. You are in for a little bit of a late start but not really. This is a really, really tight squeeze and it is just starting to move up.
You will see other kinds of similar stocks doing the same kind of thing. Apple ( NASDAQ: AAPL ); the squeeze wasn’t as textbook as Microsoft ( NASDAQ: MSFT ) was but it’s working.
One trade that we were in this morning, we did a live trading session for members, is Tesla ( NASDAQ: TSLA ). I bought this pre-market and I mentioned that if it breaks through and closes above 900.00 I could see this thing go to 1000.00 pretty easily. You could say, “Well, that’s not much of a call.” And I would say, “BS, it is too.” Because if you look at where this is at 900.00 going up to 1000.00, look at the percent, that’s an 11 percent move. That’s an 11 percent move in a stock that has already been a monster stock this year, at least since March. It’s a stock where the CEO has said that this company actually takes a back seat to SpaceX. So this guy is basically telling his Tesla ( NASDAQ: TSLA ) employees, “Hey man, sorry, SpaceX is my most important thing.” So you would think that in that situation the stock would go down but it didn’t. People didn’t give a rip so they’re buying it.
And by the way, I mentioned this last week or the week before, that if that SpaceX launch goes well, and thank the good Lord it did, if the SpaceX launch goes well, as weird as it sounds, Tesla ( NASDAQ: TSLA ) would probably go up and it has been. So I am looking at this right now as easily hitting $1000.00; I have got to qualify it, I could be wrong, I’m not predicting I am just looking at the chart and I’m projecting, that’s what I do. If this breaks through 1000.00 there is really no telling how high it can go.
Those of you that have known me for a while know that I am the furthest thing from a Tesla ( NASDAQ: TSLA ) bull. I am not one of those zealots that just think anything that Elon Musk touches turns to gold. For crying out loud, the guy has a new kid and he is already got him all tatted up, so enough said. But I do recognize a stock that is under intense demand and at the same time under intense demand by short sellers. A lot of short sellers just won’t give up their shorts on this company. They are betting against Elon Musk and they think that’s a good bet. I don’t think it’s a good bet on its face to bet in favor of Elon Musk, I think you have got to look at the chart. That’s where you can be agnostic; love or hate Musk it doesn’t matter. It doesn’t matter, you look at the chart and this is a chart that just defies gravity.
And hey, anything that is defying gravity, as long as I have a parachute, which is called a stop-loss, as long as I have a parachute I will go on that ride, I will absolutely go on that ride. So we got long Tesla ( NASDAQ: TSLA ) this morning for a trade but I’ve said this is a longer-term trade. This is actually the first time that I have owned calls on this in quite a while; because typically I just don’t trade Tesla ( NASDAQ: TSLA ) for various reasons.
So we’ve got Tesla ( NASDAQ: TSLA ), we’ve got Apple ( NASDAQ: AAPL ) that’s working. We’ve got Microsoft ( NASDAQ: MSFT ) that’s working.
Here’s another stock that is working really well, Oracle ( NYSE: ORCL ). This doesn’t have as high of beta as the other names. In other words, it’s not a super fast mover but this is also a stock that has been in a volatility squeeze and it is just now breaking out on average volume; not huge volume but on average volume. This is a stock that you can be owning here and then you give it about a 4 percent stop-loss. I wouldn’t ride it all the way down to test the 50-day moving average. The only reason I would be buying the stock, and I have owned it for a few days, not that many, but the only reason I would be buying it now is that I thought that this breakout was going to hold and that the stock is going to go higher.
Therefore, I will know I am wrong if the stock comes back down. If it comes back down here, well then I will go, crap, I’m wrong. So I will sell that position and then start over, just watch it; it is not an in or out binary thing one time, I am either in or I am out. You can be in and then you can be out. You can say, “Well, I well wait and see if I get a setup again.”
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