Buying More Peloton as Shares Wake Up
We’re sticking with this price target as the chart suggests. a good time to initiate or add.
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The shares of portfolio holding Peloton Interactive (PTON) have been very quietly waking up over the past few weeks. This portfolio has a myriad of problems. Peloton has not been one of them.
Readers will see that PTON, after falling out of bed in early August, has gone on to develop what looks like a saucer pattern of bullish reversal. A saucer pattern, much like a cup pattern, can add a handle. The addition of a handle does not change the bullish nature of the pattern but could provide an opportunity to either initiate the name or add to an existing long position at advantageous prices. PTON has very quietly retaken its 21-day EMA, 50-day SMA and 200-day SMA. This implies that both professionals and swing traders have been on the bid at support.
Moving on to the indicators that I use, relative strength is now better than neutral, but nowhere near reaching a technically overbought condition. In addition, the daily MACD is now overtly postured in bullish-signaling fashion. The histogram of the nine-day EMA eased into positive territory in mid-September and has solidified that move since. The 12-day EMA crossed above the 26-day EMA in late September and has pulled away as both of those lines have crossed above the zero-bound. These signals are all short to medium-term bullish in nature. Peloton is set to report in early November. The portfolio reiterates its $9 target price.
Portfolio News
Rocket Lab (RKLB)
On Friday, Rocket Lab (RKLB) launched an Electron rocket to deliver a dedicated mission to space for HawkEye 360 (HAWK). This is the “We’re Not Hawking Around” mission and was launched from Rocket Lab Launch Complex 1 in New Zealand at 8:11 p.m. NZDT on Friday, October 23. The objective was to deliver three HAWK satellites to a 520 kilometer low Earth orbit. Operating in tri-satellite formation, these satellites will collect signal data from across the radio frequency spectrum for maritime tracking, GNSS jamming detection, radar monitoring, communications mapping, and space defense.
SoFi Technologies (SOFI)
On Thursday, SoFi Technologies announced the launch of SoFi Earn, the first and only national bank-issued tokenized deposit for consumers. Members can now earn interest on digital dollars while keeping them ready to use. This represents SOFI’s fifth new crypto offering in less than a year. Each SOFIE represents $1 held on deposit at SoFi Bank, earning 4.40% APY with funds FDIC-insured up to applicable FDIC limits. When members are ready to put those funds to work, they can convert SOFIE 1:1 to SoFiUSD, then use the SoFiUSD to buy crypto directly in the SoFi app or move money over blockchain rails 24/7.
Thursday’s Intention vs Actual Trade
Intention: Purchase 2 shares of RKLB at $52 (limited) or better
Actual trade: Bought 2 shares of RKLB at $51.13
Friday’s Intention
Purchase 10 shares of PTON at $5.25 (limited) or better.
Current Positions
Long 60 shares of (ASPN) at $5.1083. Target price: $10. Last close: $5.44.
Long 50 shares of (EVLV) at $5.33.92. Target price: $7.50. Last close: $4.59.
Long 170 shares of (OCUL) at $8.1627. Target price: $12. Last close: $6.61.
Short one OCUL $9 December 18 call at $0.80. Last close: $0.20.
Long 310 shares of (ONDS) at $7.7674. Target price: $12. Last close: $6.02.
Long 110 shares of (PL) at $19.7084. Target price: $20. Last close: $13.08.
Short one PL $17 November 19 call at $1.70. Last close: $0.18.
Long 60 shares of (PTON) at $5.0263. Target price: $9. Last close: $5.46.
Long 14 shares of (RKLB) at $59.7914. Target price: $84. Last close: $51.22.
Long 150 shares of (SOFI) at $15.90. Target price: $24. Last close: $14.77.
Cash: $85.84.
Portfolio value: $8,293.12, -17.1% from inception on March 24.
At the time of publication, Guilfoyle was long ASPN, EVLV, OCUL, ONDS, PL, PTON, RKLB and SOFI.
