Trimming on Strength as 2 More Price Targets Are Smashed
We’re taking our targets higher on Planet Labs and Velo3D.
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$10,000 Portfolio holding Velo3D (VELO) breached our $20 price target on Thursday. The portfolio made a small sale and adopted a new $22.50 target. Well, that target has been smashed Tuesday morning. The portfolio will have to make another adjustment.
This came after Rocket Labs (RKLB) sailed right through our $132 price target. We made a small sale and took that target up to $152.
Lastly, this (Tuesday) morning, Planet Labs (PL) is trading above the portfolio’s $47 price target.
Now, we’ll have to check ourselves. The last thing we want to do is get arrogant because we are hot. We are not stupid. No even close, but nobody is this smart.
The market is helping us, which is why we maintain our code of discipline and make these small sales while adjusting targets. A very common rookie mistake that I have made myself and occasionally still do, is not acting at price targets or panic points. On this matter, the portfolio will make every effort, while publishing but once a day, to remain vigilant.
Velo3D
Readers will see that VELO continues to break out of a Double Bottom pattern of reversal that developed earlier this spring. We mentioned this here on Friday.
The shares tested support at their 50-day simple moving average (SMA) in early May and have been on fire since. Both Relative Strength and the stock’s daily moving average convergence divergence (MACD) are postured quite bullishly. Neither reflects a technically overbought condition, though that RSI is getting close.
The portfolio will again make a small sale and take our price target up to $30 from $22.50. This new target is not based on technical analysis. This is meant to get the balance of the portfolio’s position out of the line of fire until a new pattern develops.
Planet Labs
Readers will see that the shares of PL continue to rise out of a Cup with Handle pattern of bullish reversal that culminated in March. The shares have since developed what looks to be a Rising Wedge pattern of bearish reversal that has us slightly concerned.
Both Relative Strength and the stock’s daily MACD are postured quite bullishly as is the case with VELO. Neither reflects a technically overbought condition, nor is either close.
The portfolio will again make a small sale as well and take our price target up to $55 from $47. This new target is also not based on the technicals. Another adjustment will be made once a new pattern develops.
Upcoming Portfolio Earnings
– Planet Labs (PL) after the closing bell on Thursday, June 4.
Friday’s Intentions vs Friday’s Actual Trades
– Intention: Sell 5 shares of VELO at or close to the last sale of $20.64.
– Actual Trade: Sold 5 shares of VELO at $21.53.
– Intention: Sell 2 shares of RKLB at $132 or better.
– Actual Trade: Sold 2 shares of RKLB at $137.00.
Tuesday’s Intentions
– Sell 5 shares of VELO at or close to the last sale of $24.83.
– Sell 3 shares of PL at or close to the last sale of $48.42.
Current Positions
Long 2 shares of AMZN at $263.71. Price Target: $324. Last sale: $267.37.
Long 60 shares of EVLV at $5.9895. Price Target: $8.50. Last sale: $6.26.
Long 200 shares of OCUL at $8.271. Price Target: $11. Last sale: $8.31.
Short one OCUL $11 Sept. 18 call at $1.65, Last sale: $1.05.
Short one OCUL $9 July 17th call at $0.90. Last sale: $0.90.
Long 125 shares of ONDS at $9.4749. Price Target: $14. Last sale: $9.33.
Long 10 shares of PL at $37.18. Price Target $55. Last sale: $48.42.
Long 12 shares of PLTR at $140.30. Price Target: $194. Last sale: $136.30.
Long 5 shares of RKLB at $59.206. Target Price: $152. Last sale: $143.09.
Long 125 shares of SIDU at $2.725. Price Target: $6. Last sale: $5.52.
Long 200 shares of SNAP at $5.7642. Price Target: $7.50. Last sale: $5.74.
Short two SNAP October 16 $6 calls at $0.87. Last sale: $0.90.
Long 175 shares of SOFI at $15.9573. Price Target: $24. Last sale: $16.37.
Short one SOFI August 21 $20 call at $1.02. Last sale: $0.68.
Long 40 shares of VELO at $12.149. Target Price: $30. Last sale: $24.83.
Cash: $478.34
Portfolio Value: $12,301.59, +23.0% from inception on March 24th.
At the time of publication, Guilfoyle was long EVLV, OCUL, ONDS, PL, PLTR, RKLB, SIDU, SNAP, SOFI, AMZN and VELO.
