Check out Ford ($F), XPeng ($XPEV) and Li Auto ($LI). (November 30, 2021)
LI XPEV
I bet you are looking at this chart going, Ford ( NYSE: F ), really? Are you really going to talk about Ford ( NYSE: F )? And my answer is, no, I’m not.
This is what I want to talk about, I want to talk about a couple of other stocks that I think are just a little bit more attractive than Ford ( NYSE: F ). One would be Li Auto ( NASDAQ: LI ). It is kind of in the news. It’s a whole EV kind of thing, all that kind of jazz. This, you can see, is an IPO out a little over a year, and this is still definitely an IPO category.
This is what I find interesting about this. The squeeze down here, I really wouldn’t categorize it as a squeeze. Between the top and the bottom, which I would say is like here and here, is 12 percent. Down here, if we are just looking at this little box here, it is just about 7 percent. The thing that is really more intriguing to me is not so much the squeeze, it’s the fact that the stock is now popping above 35.00, and on the last couple of days, the volume is pretty good.
This stock could move higher. They already reported earnings, hence the volume. But it looks to me like we’ve got a little bit of room to run here. Then you keep your stop, you’ve got to give it a little bit of room but just use the numbers. Don’t risk a lot of money, but you’ve got to give it 6 or 7 percent room.
But wait, there is more. The one that I really wanted to feature, and I am going to because this is my video, is XPeng ( NYSE: XPEV ). I put this on our Active Trade List last week, this stock is acting really well. I always prefer to see stocks just break out and keep going. This hasn’t really done this here. It had a couple of days, where if you are a little skittish, and I will be honest, these days I kind of am, if you are a little skittish you are kind of concerned about this, like what the heck am I going to do if this stock, like so many others, kind of fakes out here and falls lower?
But all of that stuff today, all of those questions were answered. The stock is now up at a new high on this chart and, really, all the way back until the first of the year, when the stock was actually moving lower. And so the thing that you want to look at here, in this context is, this was the high in January. Everybody that is in this box, a lot of these people have lost money, not these folks here, all of this time passing by is giving the top buyers plenty of time to get discouraged and sell their stock.
And so when a prior resistance, a prior top is this far behind it doesn’t even matter, unless you are doing a video on it. What really matters is just, I would say the last 4-months or so is probably the maximum, maybe 5. If it is further back than that, all this is an excuse to draw a box.
I like the way this is trading now, I own some stock. I bought more stock today and I also sold some $50.00 puts for January. So there are still like 50, 52-days remaining so I am not going to get a lot of time decay. But I got over $3.00 for them and I’ll take that. If the stock happens to pull back 47.00, $46.00, which is where my base would be, I will gladly take that stock. This is how I have traded this and now, at this point, frankly, I believe that the trade is over. Now I am just going to sit here and let this chart do the work for me.
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