Inside the Portfolio: Updates from our Swing Trading Desk
27 Sept 2024 - Insights, adjustments, and forecasts about our latest swing trades
The market never fails to keep us on our toes. Let's break down yesterday's mixed bag and look ahead:
The Bad News: We were stopped out of DCTH, resulting in a loss. It's a reminder that even carefully chosen positions can go against us. This is why our risk management strategies are crucial.
The Good News: Our thesis on LVMH (MC) played out exceptionally well, particularly regarding China's market dynamics. It's a win that validates our research and analysis approach, we’re over 10% profit in a couple of days.
Market Overview: Major indexes show minimal movement, suggesting a period of consolidation. In such times, we remain vigilant for emerging opportunities.
Looking Forward:
We've identified a promising medium-term play that aligns with current market trends.
There's an exciting new addition to our portfolio that shows strong potential.
In today's analysis, we'll examine these opportunities in depth, examining their fundamentals, technical indicators, and relationship to the broader market context.
1.IonQ Inc (IONQ)
IonQ, Inc. develops and manufactures quantum computers. The firm specializes in quantum computing and quantum information processing.
Technical Analysis and Investment Rationale:
IonQ, Inc. (NYSE: IONQ) has emerged as a compelling opportunity in our portfolio, particularly in the burgeoning quantum computing sector. Following a prolonged downtrend that began in late 2023, the stock has shown remarkable resilience, consistently finding support at the $6.30 level throughout the summer of 2024.
Our analysis reveals a significant breakout from this downtrend, first occurring in mid-September, albeit with low volume. The stock recently retested the downtrend line, and today's explosive move higher, accompanied by four times the normal trading volume, suggests a potential change in character for IONQ.
IonQ presents an intriguing risk-reward proposition, blending elements of both momentum trading and long-term investment in the quantum computing space. The stock's ability to close near its daily highs could confirm this shift in momentum and signal the start of a new uptrend.
Today’s news of a $54.5 million contract award from the United States Air Force Research Lab - the largest 2024 U.S. quantum contract - serves as a strong catalyst for the stock. This development not only validates IonQ's technology but also accelerates its expansion into the $15 billion quantum networking market.
Management's expectation to nearly double revenue for the third consecutive year underscores the company's growth trajectory and its potential to become a leader in the quantum computing industry, which is widely regarded as the future of computing technology.
Our risk management strategy involves setting a stop-loss at the low of the day, as is our usual practice. This approach allows us to participate in potential upside while limiting downside risk.
Entry Day: 27 September
Price: $ 9.04
Il resto di questo pezzo: i nomi, i livelli, la gestione.The rest of this piece: the names, the levels, how we manage it.
Ogni domenica dieci titoli con i livelli scritti, la lettura del mercato e la chat in cui pubblichiamo entrate e uscite mentre le facciamo. Disdici quando vuoi dal tuo account Substack.Every Sunday, ten names with the levels written down, the market read, and the chat where we post entries and exits as we make them. Cancel any time from your Substack account.
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