Check out these trade ideas on $NVCR $SHAK and $SNOW (December 04, 2020)
SHAK SNOW NVCR
Typically I do just one stock on the Chart of the Day but today I am doing three. First of all is Shake Shack ( NYSE: SHAK ). This one broke out of here; I know that Scott McGregor, in our forum, he’s a contributor here as well, anyway, he put people in this stock right as it was breaking out
I just want to mention that this stock is up 3-days in a row pretty strongly, over 10 percent so it is kind of due for a rest. But before you just write it off look at the weekly chart. This is in a really strong uptrend so if you are buying this stock, if you are buying it now, if you can give it this much room, give it room for under the break out point, give it about 8 percent. If it pulls back you’re okay, you kind of have a started position here. But again, it is a little extended and I would prefer to see it pull back just a bit and give us a little bit better entry.
And then Snowflake ( NYSE: SNOW ); this is a monster stock. People in our trading forum, we have one of those; people in our trading forum were all over this yesterday, early. We had it on our Active Trade List and sold it out into this ramp for a really nice profit, and I have been covering it lately as well.
With this stock, because it’s new, I am looking at these kinds of moves as institutions that are competing for this stock. It’s a brand-new stock; institutions need to get this stock in. There are only 533 institutions or funds that own this stock, there are going to be a lot more, so this is how you understand this. This is funds competing with each other to buy the stock. This is not just distribution to where you have got manipulators juicing the stock so they can sell into that; there is not that much ownership in an IPO.
And so I would stay long this stock. What I did today was, I sold part of my position as effectively a way to finance the rest of my position. The profits that I took on that, I sold 1/3 of it, and the profits that I took on that go to the average cost basis over the other 2/3 and so I have more of a cushion, and so I’m not going to take a loss on this one.
And then the last one here is NovoCure ( NASDAQ: NVCR ). You can see this broke out of this descending series of highs in kind of a little pinching pattern here on really solid volume. Again, look at the weekly chart this helps you stay in.
You are a little bit late buying it now, I bought a little bit down here on the breakout, wished I had been looking at it back here but I wasn’t so this is a different trade. I got it on this breakout, and now what am I doing? I am immediately flipping over to the weekly chart because I don’t want to get shaken out. And so this is the third stock that I am looking at that I think is really going to make you money.
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