💼 Inside the Portfolio: Updates from our Swing Trading Desk

08 Oct2024 - Insights, adjustments, and forecasts about our latest swing trades 💹

In today's dynamic financial landscape, the market has finally broken higher, signaling a promising follow-through day. This pivotal movement has prompted us to strategically open two new positions, carefully increasing our market exposure while maintaining a balanced risk approach. It's crucial to ensure that our investments are supported by strong market indices to mitigate potential risks.

This morning, LVMH (LVMH Moët Hennessy Louis Vuitton, Euronext) experienced a significant gap down, likely influenced by a 10% drop in Chinese indexes. Fortunately, our protective stop was triggered, securing a 7% profit. Although the stock has since rebounded, adhering to our stop-loss strategy remains paramount.

In other developments, CART (Maplebear Inc., NYSE) has shown impressive momentum, breaking all-time highs following yesterday's analysis. Meanwhile, SOWG (Sow Good Inc., Nasdaq) is approaching our stop-loss threshold, warranting close observation. BA (The Boeing Company, NYSE) continues to hold above the 10-day EMA, maintaining a stable position, while CRK (Comstock Resources, Inc., NYSE) experienced a morning pullback that was met with buying interest, suggesting potential for another upward move.

One of our newly opened positions originates from our weekly free watchlist, underscoring the value of diligent market research and strategic planning. As we navigate these market shifts, our focus remains on disciplined execution and risk management to capitalize on emerging opportunities.

1. Maplebear Inc. (CART)

Maplebear, Inc. engages in the design and development of an online application that offers grocery delivery and pick-up services. The firm offers Instacart which enables users to connect with personal shoppers in the area who pick up and deliver groceries from local stores.

Technical Analysis and Investment Rationale:

Maplebear Inc. (NYSE: CART) has emerged as an intriguing opportunity in our portfolio, offering exposure to the rapidly growing e-commerce and delivery sector. As a newly listed company, CART presents a fresh and dynamic investment prospect that has caught our attention.

Our analysis reveals that CART, which was recently highlighted in our weekly watchlist, has demonstrated impressive technical strength. The stock has broken out perfectly from a pennant formation today, showcasing robust momentum despite the broader market being in negative territory. This outperformance in a challenging market environment is particularly noteworthy and suggests strong investor interest in the company.

The investment thesis for CART combines two key elements: a play on the growing e-commerce and delivery market, and a promising technical setup. The successful breakout from the pennant formation could potentially signal the beginning of a new uptrend, making this a suitable entry point for investors.

From a risk management perspective, we recommend setting a stop-loss at the low of the day. This strategy allows for participation in potential upside while providing a clear exit point to limit downside risk.

It's important to note that while CART may not be classified as a super-growth stock, our financial analysis indicates solid fundamentals. We anticipate good growth in the coming quarters, which should translate into stock price appreciation. This combination of technical strength and sound financials provides a balanced investment case for CART.

Entry Day: 07 October

Price: $41.13