An Update on Palantir, Rocket Lab and Three Other Stocks After Market Meltdown
Here's what I'm doing after the latest on five "Stocks Under $10" names or graduates.
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Time for a broad update on both of the "Stocks Under $10" names that I have written about and are still long, as well as former "Stocks Under $10" names that have graduated from the category, but that we have been writing about, been long and are still long.
The market is in a dangerous place right now, as Friday morning's meltdown could probably only happen during the algorithmic era, but I thought I would update you on what I am doing.
Adding To Existing Longs
Humacyte HUMA
I initiated this "Rev Shark" DePorre name rather recently and have added. Relative strength is positive, while the daily MACD is postured quite bullishly. The 21-day EMA was held, and the 50-day SMA was taken easily. Should this name recapture its 200-day SMA, portfolio managers will likely be forced to add long-side exposure and so will I.
Vera Bradley VRA
The stock fell out of bed. I have already added on weakness and intend to add more now that the stock shows signs of bottoming. The daily MACD is in lousy shape, but the 12-day EMA is curling up towards the 26-day EMA. There is still that unfilled gap up above the $5 level, and relative strength, while weak, has crawled out of technically oversold territory.
Showing Caution
Rocket Lab USA RKLB
I'm not adding or reducing RKLB until I know whether or not what's developing before us is a double-top reversal pattern. But I still love the stock and the business.
SoFi Technology SOFI
Similar to what I just wrote about RKLB, I am not adding or reducing SOFI until I know whether or not what's developing before us is a head-and-shoulders pattern. I still love the stock, still love the business and still love the CEO.
Palantir Technologies PLTR
PLTR appears to be showing some natural weakness coming off of the upper trendline of the above Raff Regression model. Relative strength is still nearly overbought. I would not be surprised to see this stock test its 21-day EMA and 50-day SMA from above. That would be an opportunity knocking in my opinion. CEO Alex Karp is, I think, the obvious CEO of 2024. My target price remains $90.
At the time of publication, Guilfoyle was long VRA, HUMA, SOFI, RKLB and PLTR equity.
