AI-related Swing Trades and Latest Round of Updates to TTBF and ITBF
In todays blog post, we go over some of the improvements to the site and services and talk about what has been working this earnings season.
We had some great earnings eruptions trading setups on CELH, MAXN, ANF and others this earnings season. Second day moves have been hard to come by, however, but they are not turning over right away either. The earnings eruptions pattern is still a definite go to strategy for us.
High tight flags have also been working great on AI-related stocks, some biotechs and other niche areas of the market since about mid-March. At least the ones that meet all the rules in the high, tight flag course or that are AI-related.
Many of you in the latest survey asked for what has been working best in the current market. Lets go over a safer trade first and then one of the biggest trades over the past couple years in detail so you can learn more about what a great opportunity looks like on a chart in 2023.
Its AI or Bust
A week and a half ago in the Daily Alert service we talked about how Google was poised to move in a bullish pattern on AI-related news. The stock was breaking an intermediate-term downtrend within a longer-term uptrend. It was doing so after unveiling their strategy to deal with and utilize AI in search results.
The stock started to march higher almost immediately afterwards. As an added bonus, Bing has not eaten into the search market share for Google despite having the new ChatGPT technology built-in. At least not yet. Here is a monthly chart of GOOGL over the past 12 years.
Charts courtesy of StockCharts.com
Notice the decade-plus uptrend in the stock followed by the intermediate-term downtrend and consolidation over the past year or so. Notice also that there has been 4 successful tests of the uptrend support line. The price starts to move a few weeks after breaking the downtrend resistance line.
Now here is the formula for making money in the current market. A strong long-term uptrend + a bullish consolidation pattern + new AI-related news for the stock + the stock price reaching a good technical entry point in the consolidation pattern right afterwards = a winning trade in most cases.
In our recent survey results, many of you asked for more blog posts for what is working in the current market. The formula above is definitely working this year.
Another good example of this is a stock featured multiple times this year in the alert service. SMCI.
Trade of the Year So Far
SMCI had formed a pattern resembling a flat base and ascending base within a long-term uptrend. They just reported weaker earnings but raised guidance for next quarter substantially as they reinforced how the trend towards AI was going to increase their business with their close partnership with NVDIA.
The price was surging towards the technical entry point in the pattern after hours. Here is how it looked when featured in our Daily Alert:
Charts courtesy of StockCharts.com
The entry trigger was the open the next morning with a small starter and add if it breaks $119.40. The next morning, it quickly reached the entry point and has soared nearly 90% after breaking out in just over 3 weeks. This is what strong and accelerating growth can do right now in AI-related stocks.
Charts courtesy of StockCharts.com
It continues to easily outperform NVDA even after one of the biggest guidance raises for a large cap in a decade from NVDA last week.
Meanwhile, NVDA is forming an earnings flag after raising revenue guidance by more than 50% last week. Some say its a better valuation now than before the earnings report just released.
We are watching it closely for more good technical entry points in the months ahead. We will be watching it for good swing trading entries for customers.
PERI is another AI-related stock that reached our target sell price several weeks ago for a big profit after breaking out of an ascending base pattern.
Since hitting our target, PERI is pulling back and getting closer to its long-term uptrend support level. Its also testing the 150 and 200 day moving average and could reach another good technical entry point in the weeks ahead.
So AI-related trades are working really well right now overall. Service Now (ticker NOW) is another terrific growth stock that recently reached our entry trigger in the alert service with AI-related news and then quickly surged around 15% higher in just over a week.
Other Areas of the Market Working Really Well Right Now
…………………………………………….. (Crickets chirping)…
Yep, its AI-related and not much else right now. The market herd has a case of AI fever currently. Perhaps a debt ceiling deal will be the cure with a period of consolidation before the next round of consolidation pattern breakouts.
Healthcare stocks were moving earlier this quarter but have fallen by the wayside in favor of other areas of the market. It seems to take some AI magic pixy dust to drive stocks much higher currently. Otherwise, its probably trending lower.
In fact, most sectors are flat to down for the year and even those with gains have narrow leadership. Its more important than ever to be on top of what is working when swing trading or day trading.
Updates to the TTBF and ITBF Services
Many of the improvements voted on will be implemented in the latest round of upgrades to the TTBF and ITBF services. More training videos and improvements based on studying all of the better earnings gaps over the past few years will be included. Thousands of hours have been spent compiling, trading, analyzing and using the data to improve the strategies.
In the meantime, we are offering a special deal for those who want to take advantage of all the great swing trades currently and more long or put option opportunities if the market starts to trend lower again.
Its also a lower priced quarterly subscription for those who want to get started without making a year long commitment.
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