Two Key Names Emerge as Bitcoin Price Continues to Rise
My favorite sector in this market is the bitcoin mining/high-powered computing space, which has a couple of good charts.
You've reached your free article limit
You've read 0 of 1 free Pro articles.
The indices are holding up, and breadth will run positive on Monday morning. Microsoft MSFT and Apple AAPL are struggling, but that is being offset by strength in Tesla TSLA and Alphabet GOOGL.
There is nothing wrong with the technical action, but if you are hunting for new buys, then it is extremely challenging right now. There are over 500 stocks hitting new 12-month highs, which is great for existing positions, but these strong names don't offer prudent entry points.
I dig through hundreds of charts every day, looking for setups that I can research further and I find almost nothing I like right now. There are stocks that I like fundamentally, like Xeris XERS and Humacyte HUMA, but they are languishing as they await news.
I am always on the lookout for hot themes or sector action. The one theme that I like right now, which has a few stocks that are looking good, is bitcoin mining/high-powered computing (HPC). I've discussed this several times recently, mainly because it is the best technical action that I see.
The two key names in this group that I'm trading are Core Scientific CORZ and TeraWulf WULF. Neither is extended, and both are testing recent highs.
On Monday, CORZ has a recommendation from Canaccord with a buy rating and a $16 price target:
"In January, the company emerged from bankruptcy protection with an operating model ready to make money again in Bitcoin mining, and then in June, Core Scientific announced what the firm views as 'the first and landmark "mega-deal" signed by a Bitcoin miner' to provide high-performance computing data center hosting capacity to Nvidia partner Coreweave. The firm likes the economics Core is getting with Coreweave, telling investors that on a contract that could generate in excess of $6B in revenue over twelve years, management is expecting to drive a roughly 80% contribution-like margin."
WULF has similar opportunities to sell HPC capacity as well as the potential profits from bitcoin mining as the price of bitcoin continues to rise.
These are my two favorite names currently. Also, I added a little EOS Energy EOSE, which is developing new battery technology for the EV industry.
I'll continue to hunt for some names of interest, but there isn't much out there right now that meets my standards.
At the time of publication, DePorre was long NVDA, XERS, HUMA, HUMAW, CORZ, WULF and EOSE.
