Let’s follow up on $DOCS – December 20, 2024
This is Scott McGregor at Scott Trades on Twitter with StockMarketMentor.com and your Chart of the Day. I want to look at Doximity ( NYSE: DOCS ).
Last night for the Chart of the Day I brought this stock to your attention. I wanted to point out that it had high relative strength versus the S&P 500 ( INDEXSP: .INX ). We saw Doximity ( NYSE: DOCS ), yesterday green, while we saw SPY ( NYSEARCA: SPY ) and QQQs ( NASDAQ: QQQ ) red.
Now, we did get a bounce in SPY ( NYSEARCA: SPY ), and we did get a bounce in the QQQs ( NASDAQ: QQQ ). But we saw a big move here on DOCS ( NYSE: DOCS ) which came on higher than average volume. So this has definitely broken expectations in a good way because I’ll be honest with you, I didn’t think that this would pop today.
I thought the market would continue to fall. Everything closed at the lows last night. I thought, oh man, we’re in for a mess in the market, let’s hope Doximity ( NYSE: DOCS ) holds up. I didn’t think it would actually break out the next day. This is one of the reasons and a good reminder that you always want to be open-minded and look for strength even when the rest of the market looks like it’s going to dump.
If you can do that, if you can just harness that skill of being open-minded, and then saying, okay, I know the market looks like crap right now but I want to look for opportunities for when the market turns around, then you can find gems just like this. That’s all I did. We saw Doximity ( NYSE: DOCS ) with some relative strength versus the S&P ( INDEXSP: .INX ).
The stock was green on a day when the major indexes were red. And then today the major indexes bounced and we saw a nice big move here on DOCS ( NYSE: DOCS ), again, coming on higher than average volume. If this trade is working for you I would definitely recommend a potential stop loss under today’s intraday low and just let this work.
Let the trend work for you because this volume is pretty telling. It tells you that, for the most part, people don’t care what the market is doing, they’re buying Doximity ( NYSE: DOCS ). And you can see that because every time it comes down to the 21-day EMA the market comes in and buys this stock, and brings it back up. So this, in my opinion, is a stock you want to watch for the rest of the year, and maybe even into 2025.
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