3 Trades in Palantir, Rocket Lab, SoFi as the $10,000 Portfolio Gets Going
Let's wade into two familiar names in small sizes while generating a little cash with another.
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Now that day one is out of the way for the "$10,000 Portfolio," we'll start moving towards populating the book with some of our favorite names. I was able to execute my entry purchase of 100 shares of SoFi Technologies (SOFI) on Tuesday at $16.98. The stock closed at $16.70 (boo, hiss) but is trading close to $16.90 Wednesday morning.
The following are this morning's intended trades. As always, I will express intent here first and wait until actual publication prior to executing my trades so that I'm not front-running my own work ahead of it becoming public information.
The portfolio is going to tiptoe into two other "Stocks Under $10" names trading at much higher prices Wednesday. The intent is to leave room to add should the shares start moving in the wrong direction or add on momentum should they keep on rockin'.
Bear in mind that I only have $10,000 to play with in this portfolio as the target audience is newer investors or those that only wish to self-manage a small portion of their investable funds. Therefore, the numbers are small and, in many cases, will include the trading of odd-lots.
Trade One: Rocket Lab
The double bottom pattern of bullish reversal in Rocket Lab USA (RKLB) that came out of a failed head-and-shoulders pattern of bearish reversal that we discussed about a week and a half ago, is still in play. The pivot created by the pattern had been $78, but the 50-day simple moving average (SMA) (currently $75) takes precedence.
I will initiate in very small size here and then add should RKLB take and hold that line or pull back to its 21-day exponential moving average (EMA), now at $71. I stand by my $98 price target.
- Purchase 10 shares of RKLB at or close to the last sale of $74.09, spending approximately $740.90.
Trade Two: Palantir Technologies
Readers will see that Palantir (PLTR) has developed a cup-with-handle pattern bearing a $161 pivot. We discussed this earlier this week in Market Recon. The stock met resistance there this week as it's 200-day SMA has continued to climb. This has taken our pivot up to $164.
As with RKLB, I will initiate in very small size here and then add should PLTR take and hold that line or pull back to its 21-day EMA, now at $152. I stand by my $194 price target.
- Purchase 5 shares of PLTR at or close to the last sale of $158.35, spending approximately $791.50.
Trade Three: SoFi Technologies
The portfolio is going to generate a little cash and write a covered call against the 100-share long position in SoFi Technologies (SOFI) .
- Sell (write) one May 15th SOFI $18 call for about $1.20.
This will create a cash infusion of $120 for the portfolio while reducing the net basis of the long equity position to an approximate. $15.78.
Related: Will Rivian’s Deal with Uber, New R2 Model Jumpstart This Stock?
At the time of publication, Guilfoyle was long SOFI equity.
