2024 Trades
An Optimistic Front-Running Market
The huge rally in the past two months leading up to 2024 has significantly influenced what the year will unfold for investors, as it has resulted in numerous pivotal assumptions to be priced into the market for 2024. These assumptions include meaningfully lower inflation, three to six rate cuts, a slowly uninverting yield curve with a lower 10yr treasury yield, and a soft landing with moderate GDP growth and no severe impact on the labor market. With the market essentially pricing in perfection it poses significant risks if these assumptions fail to materialize, but conversely, it holds substantial upside potential if they prove accurate. Nonetheless, it's also noteworthy to mention that even if these assumptions are all met, the overall stock market may not experience a rally similar to that seen in 2023. This is because these scenarios have already been factored into the market, resulting in its current high valuation. Consequently, 2024 will provide the most opportunity for undervalued areas in the market that have not experienced a significant increase in their multiples in 2023. This includes small to mid-cap growth stocks, which are well-positioned for huge upside, especially if interest rates begin to decline.
All Trades Executed During The Course of 2024
Tesla (March 22, 2024)
Technicals indicate a high probability of a price reversal from current level
Fundamentally oversold and bearish sentiment is overblown
Apple (April 8, 2024)
Strong technicals indicate a bottom has been found and a possible price reversal is near
I find it interesting that Apple has not communicated anything about AI or the application of AI in their devices; giving them the benefit of the doubt, I do believe that Apple may have something up their sleeve that they might reveal soon
Affirm Holdings (April 11, 2024)
Technicals indicate a high probability of a price reversal from current level
With rate cuts on the horizon and the US economy remaining robust, this stock could emerge as a winner
Marathon Digital Holdings (April 12, 2024)
Technicals indicate a high probability of a price reversal from current level
After the Bitcoin halving, the amount of Bitcoin available as rewards for miners is cut in half; this makes mining less profitable
However, this will mean many poorly run mining companies will go under, allowing Marathon to gain greater market share
Regardless, the market is forward-looking and has already priced in the decline in earnings due to the halving
The stock is highly correlated with Bitcoin; if you are bullish on Bitcoin in the medium to long term, then Marathon could be a home run winner
Zscaler (April 17, 2024)
Technicals indicate a high probability of a price reversal from current level
Very strong growth ahead and very bullish on the cloud security industry
Rivian Automotive (April 24, 2024)
Technicals indicate a high probability of a price reversal from current level
The sell-off has been overblown; and following the rally of Tesla after their earnings report indicated better-than-expected guidance, Rivian could follow suit
Warner Bros. Discovery (May 1, 2024)
Technicals indicate a high probability of a price reversal from current level
Warner Bros could emerge as a significant winner in the future of the online streaming space; they are also fundamentally undervalued
Adobe (May 2, 2024)
Technicals indicate a high probability of a price reversal from current level
A fundamental winner in the AI and digitization space; the recent pullback allows for a great opportunity to buy the dip
Palantir (May 10, 2024)
Oversold and undeserving bearish sentiment after reporting their Q1 2024 earnings on Monday
Technicals indicate a high probability of a support level at the current area of $20.65, with a possible price reversal potentially following
Coinbase (May 17, 2024)
Fell -9% the previous day because of news that CME is planning to start bitcoin trading; nonetheless,Â
CME can't do 24/7 trading
Coinbase is about the whole environment of the crypto world, not just BTC
Coinbase already has and continues to grow its institutional base
This news highlights the increasing demand from money managers to add exposure to crypto, which is very bullish for Coinbase
Technicals indicate a high probability of a support level at the current area of $200, with a possible price reversal potentially following
Block (May 29, 2024)
Attractive entry point based on technicals
Super Micro Computer (June 7, 2024)
Attractive entry point based on technicals; a clear base has been formed in the 740-770$ range
Advanced Micro Devices (June 18, 2024)
Attractive entry point based on technicals; a clear base has been formed in the 155-156$ range
On Holding AG (July 1, 2024)
Attractive entry point based on technicals; a clear base has been formed in the 38-39$ range
On Holding is poised to be the next consumer apparel household name
Direxion Daily Small Cap Bull 3X Shares ETF (July 5, 2024)
Attractive entry point based on technicals; a clear base has been formed in the 35-36$ range
The divergence between large-cap and small-cap stocks has reached unprecedented levels, and in my opinion, it is inevitable that these levels will slowly begin to revert
I think we will see short-term small-cap outperformance in the summer
Super Micro Computer (2) (July 15, 2024)
Attractive entry point at $910 based on technicals
Marathon Digital Holdings (2) (July 15, 2024)
Attractive entry point at $22 based on technicals
Coinbase (2) (July 15, 2024)
Attractive entry point at $230 based on technicals
Affirm Holdings (2) (July 15, 2024)
Attractive entry point at $30 based on technicals
Hims & Hers Health (July 15, 2024)
Attractive entry point at $22 based on technicals
2024 Performance
Tesla: 11% (Closed)
Apple: 9% (Closed)
Affirm Holdings: 9% (Closed)
Marathon Digital Holdings: 20% (Closed)
Zscaler: 8% (Closed)
Rivian Automotive: 13% (Closed)
Warner Bros. Discovery: 10% (Closed)
Adobe: 10% (Closed)
Palantir: 11% (Closed)
Coinbase: 15% (Closed)
Block: -5% (Closed)
Super Micro Computer: 15% (Closed)
Advanced Micro Devices: 14% (Closed)
On Holding AG: -4% (Closed)
Direxion Daily Small Cap Bull 3X Shares ETF: 25% (Closed)
Super Micro Computer (2): -4% (Closed)
Marathon Digital Holdings (2): 14% (Closed)
Coinbase (2): 13% (Closed)
Affirm Holdings (2): 13% (Closed)
Super Micro Computer (2): -4% (Closed)