Here are my thoughts on a couple of potential trades — Anaplan ($PLAN) and Moderna ($MRNA) (July 09, 2020)
PLAN RNG PLAN MRNA
Just a quick video today. We’ve got this kind of triangle here ( NYSE: PLAN ), I can’t even really call it a symmetrical triangle because, frankly, I have to use my imagination to draw a triangle here. If I am just kind of connecting the lows, they are kind of like that, but this just kind of feels better so that is what I am doing to be perfectly honest with you.
But the way I am looking at this chart is, this stock hit a double bottom here way back in the dark ages of March. And then since that time, after that, it ran up here and then it has just been consolidating, just grinding around for a month, a little over a month here, and it’s finally starting to move out the upside.
So what I am looking at in this is, they don’t report earnings for about a month and a half or so. And so I think not that this stock has cleared $50.00, which kind of had been a little bit of a top here, now that it has cleared $50.00 I got a sense that this stock can just continue to run. It is in the right sector, software, and so what I would be doing here, if you are already long maybe give it 8 percent or so. In my view, it shouldn’t even trade below the 200-day moving average. But even if it does it could still be kind of caught at the 50-day moving average. That is just a little too much room to give a new position; you would be giving it over 10 percent, you just don’t want to give a stock that much room.
I know for some of you that’s a problem. I have heard from people who say, “Well, I don’t you use stops because stops don’t work.” And I guess I would just say that you are probably doing it wrong but hat is an individual choice, it’s your choice. I am not going to tell you whether to do it or not. I will tell you how to do it but if you want to go walking on a high wire without a net, it has worked for an entire family called the Wallenda’s, except for those who fell. So I would use stops but the way this is trading it just does look like it is ready to continue to move higher.
If you look at like RingCentral ( NYSE: RNG ), this is one of our Growth Stocks, it is kind of giving you this same type of deal. It is just this little sleepy walk higher and it is going to kind of put you to sleep. I am not expecting a big huge sprint from Anaplan ( NYSE: PLAN ) here. It just looks to me that the stock is under accumulation it is going to kind of gradually just work its way higher.
And then just one other parting shot here, Moderna ( NASDAQ: MRNA ); I mentioned this yesterday, I think it was, talking about how this just looked like it was setting up and getting ready to make a bit of a run and we see that it is actually doing that. I think this is still buyable actually for one more day anyway. I think it is still buyable it just needs to hold above the 50-day moving average and that should work pretty well.
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