💼 Inside the Portfolio: Updates from our Swing Trading Desk

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

In today's market update, the speculative investment fund navigated a challenging trading environment as the market opened on a downward trajectory. Two of our positions hit their stop-loss levels, reflecting the volatility that investors are currently facing.

Yesterday, our position in Mobileye (MBLY) reached its stop at breakeven, a neutral outcome amidst the market's fluctuations. Meanwhile, SOC's overnight stock offering led to a significant price drop. Despite this setback, our entry at $21 allowed us to secure a commendable 20% profit overall, though it was a sharp decline from the 40% peak we had previously enjoyed. Such swings underscore the inherent risks and rewards of speculative investing.

In response to these developments, we exercised caution and added only one new position today, maintaining a strategic approach as we assess the evolving market landscape. Our focus remains on identifying opportunities while managing risk effectively in these uncertain times.

1. PureCycle Technologies Inc (PCT)

Purecycle Technologies, Inc. engages in recycling waste polypropylene into virgin polymer. Its process includes two steps: Feed Pre-Processing and the use of the Technology for purification.

Technical Analysis and Investment Rationale (Published on 19 Sept):

PureCycle Technologies (NASDAQ: PCT) has emerged as a compelling opportunity in our portfolio. Following significant investments from two major funds (90 million) and positive operational updates, we identified a favorable risk-reward setup.

Our analysis revealed a bullish flag pattern after an impressive 88% surge, with strong support at the $8 level (a previous resistance). We executed our entry as PCT broke out of this formation with increased volume, implementing a disciplined risk management strategy with a stop-loss at the day's low.

The stock's gap-up on 19 September, breaking the flag pattern with higher volume than the previous three days, reinforces our bullish outlook. This tactical approach aligns with our fund's commitment to capital preservation and alpha generation.

Entry Day: 19 September

Price: $8.43