💼 Inside the Portfolio: Updates from our Swing Trading Desk

19 Sept 2024 - Insights, adjustments, and forecasts about our latest swing trades 💹

The Federal Reserve has cut interest rates for the first time in over four years, marking the start of a new easing cycle. This 50 basis point reduction reflects concerns about the economic slowdown and aligns with market expectations. While the initial market reaction was positive, with major indexes reaching record highs, the long-term impact remains to be seen. Small-cap stocks could potentially benefit the most from these rate cuts due to lower borrowing costs. This shift in monetary policy is expected to affect various aspects of the economy, from mortgage rates to stock valuations.

In light of these developments, we've initiated two new positions in our portfolio. Unfortunately, we were stopped from our CELH and WOOF positions yesterday due to the market dip following Powell's speech.

1. Mobileye Global Inc (MBLY)

Mobileye Global, Inc. engages in the business of development and deployment of advanced driver assistance systems and autonomous driving technologies and solutions.

Technical Analysis and Investment Rationale:

Mobileye Global Inc. (NASDAQ: MBLY) has emerged as a compelling opportunity in our portfolio. Following Intel's reaffirmation of its 88% stake and dispelling sell-off rumors, we identified a favorable risk-reward setup.

Our analysis revealed a breakout above a key downtrend line, a bullish technical indicator. We executed our entry as MBLY broke this formation with significant volume, implementing a disciplined risk management strategy with a stop-loss at the day's low.

The 20-day Exponential Moving Average (EMA) is currently providing support, reinforcing our bullish outlook. This tactical approach aligns with our fund's commitment to capital preservation and alpha generation.

We have initiated a half position to test the waters and will closely monitor this position for potential allocation adjustments as the market evolves.