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🤝 Is The Trend Your Friend?
Supermicro is becoming supermassive. Plus, the S&P and Dow hit new all-time highs.
Brooks Dyroff
January 22, 2024
Happy Monday Zingers! “The trend is your friend” strikes again. After a massive day on Friday, Super Micro Computer continued moving higher by more than 3% today, now up nearly $100 a share in less than a week. Don’t worry, though. $SCMI investors didn’t bogart all the fun. The Dow and S&P 500 hit new all-time highs — again.
Now, you may feel timid about buying stocks at a new peak. But it’s worth noting that, historically, buying at all-time highs has actually worked out. It’s been good for more than an 11% 1-year return on average, according to RBC Capital Markets.
Today’s Price Action:
$SPY: +.21%
$QQQ: +.13%
$DIA: +.39%
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TODAY’S MOST VOLATILE STOCKS
ONE TOP MOVER
Briefly: Look, I don’t like to get involved in politics. But I do like to get involved in profitable trades in the market.
What Happened: $DWAC shot up nearly 90% as investors rushed to the stock amid former President Donald Trump’s success in Iowa and early polls.
Back Up: Digital World is a SPAC set to merge with the former president's Trump Media & Technology Group.
Why Now: Florida Governor Ron DeSantis just dropped out of the presidential race and endorsed Trump. The latest Morning Consult poll now shows Trump with approximately 69% of support in the Republican primary.
Why It Matters: $DWAC’s stock is now up more than 150% in the last week of trading.
What Next: Read more here.
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FIVE MOVERS
United Airlines shares took off after hours following the company’s stronger-than-expected earnings report, despite the recent Boeing fiasco.
Dianthus Therapeutics stock closed up more than 30% in Monday’s sessions after the company announced a PIPE deal worth $230 million.
UiPath stock moved higher in today’s session as traders bought the dip shares following a recent pullback.
Upstart stock finished the day up more than 10% amid daily strength in “meme stocks” like Carvana, SoFi and more.
Alibaba and other Chinese names moved lower in today’s session as investors remain uncertain of China’s economic future.
ONE TRADE IDEA FOR TOMORROW
Briefly: Tesla is set to report its Q4 earnings after the close on Wednesday.
The Expectations: The street is expecting fourth-quarter revenue of about $25 billion, up about $1 billion from the previous quarter.
The Bull Take: "It's all about the margins. While I expect a slight improvement quarter over quarter, I believe the outlook for margins in 2024 will be for stabilization, not expansion," said Deepwater Asset Management’s Gene Munster.
The Bear Take: Morgan Stanley’s Adam Jonas is a Tesla bull, but he’s not too bullish on Tesla’s report. Jonas lowered the price target on Tesla shares from $380 to $345, saying the global market for electric vehicles is unfavorable.
What Next: To read the full earnings preview, click here.
PRESENTED BY MARKET MASTERS
Market Masters breaks trading down into basic building blocks (like Legos) and tells you how to assemble them for success.
Think of them like a school, but for the real-world. We make learning the full stack of trading skills a fun, collaborative process.
Not only is live voice trading included, but you'll also get 1000+ hours of content, daily classes, trading view indicators, and more.
With a 4.93/5 positive feedback rating, it's no wonder thousands of customers have trusted Market Masters.