Here’s your trade on Charlie ($AI) – March 31, 2023
AI ( NYSE: AI ); we’ve got a lot of stocks in our Active Trade Idea List. And with the exception of AMD ( NASDAQ: AMD ), which is down, like, $2.00, all of our trades are going really well.
What I wanted to highlight here was AI ( NYSE: AI ). Now, we took this stock at 24.50 a while ago, on the 23rd, so we’ve been on it for over a week because it had run back up above the 20-day moving average, or the middle Bollinger Band and volume on that day was pretty good, that’s this right here.
It was almost average, but the way this thing has been screaming, like, but what’s average? Today it’s up 55 million shares traded and a lot of those were actually mine, I think, I’ve been buying the snot out of this thing all day long. I liquidated some into the close just for risk management purposes.
But I wanted to show you something. The stock rebounds off the 20, and this was a key move because it was on volume. And then it traded sideways for a few days, 3 days until it finally kind of got its legs and ran up above 26.00, this was just on Wednesday. And again, volume was higher than it had been on the prior day, which was the only low day. In other words, the only day of selling.
So we had high-volume buying, high-volume buying, lower volume buying but still not bad, and then the lowest volume selling. and then since that time, the stock has been running back up on heavy volume. So there is a lot of institutional buying here, just a lot of institutional buying. If you even look at it on the intraday chart, the orange line here is the volume-weighted average price.
Right now, for example, at 31.31, that means that the average price of all shares traded today was $31.31. Right now where are we? We are $1.70 above where the volume-weighted average price is. That tells you, when you look at this disparity and you see that it took off right out of the gate and kept on going, this tells you that there is institutional demand for this stock all the way through.
Now, I’m sure there are plenty of retail traders, other than me, that are in this stock. But you don’t get this kind of move, look how dramatic this is, over 55 million shares traded. You don’t get this kind of move because Billy Bob, Jethro, and Austin had their bait and stock trading shop buying this stock today, and this isn’t Insta Reddit, whatever it is, doing it. If you look at the weekly chart, this stock looks to me like it is just getting going.
If you look at where this stock had traded here, and do you think that maybe the market awareness, and the value of this product, I use it, I like it. All I am saying is, this has plenty of headroom to move higher. And if you look at the last time this was at this level, it was over a year ago, it was 14 months ago, while the stock was on its way down, so this is hitting a 52-week high today on huge volume.
So frankly, I think this stock is just getting started, You are going to have some wiggles and jiggles here, it is not just going to go up in a straight line. But I absolutely believe the path of least resistance is up, and that is why it’s my biggest position.
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