Welcome to Hot Stocks.
This section highlights our selection of 'Hot Stocks'. Stocks are chosen for their technical clarity or fundamental catalysts. Each trade idea follows a specific trade type / playbook (eg momentum, pullback in trend, earnings play,). These are specified to the left of each chart and are linked to the respective section on our education page. Clicking the link will take you to a detailed description of the exact conditions and tactics best suited to the trade.
Not every chart recommends a specific trade at the time of posting and we leave it up to each reader to trade as they see fit based on our guidelines. New additions will always be posted at the top of the page. When older posts lose relevance they will either be posted again at the top of the page with an update, or will be deleted.
General Update - 3rd January
Select stocks look set to rally in the first part of the year. Industrials like BA and GE, commodity stocks like FCX should all go on to make new highs above the December highs.
Weaker sectors likely just bear flag or make weak bounces and Tech stocks like NVDA are a sell on the bounce. COST is a sell as per the attached chart.
General Electric - 21st December
GE was the best performing stock from our recommendations on Tuesday and should follow through on Wednesday. Longs can target a new high to around 89 over the coming weeks.
Turnaround Tuesday - 20th December
Stocks looks ready to make a bottom and Turnaround Tuesday should present some buying opportunities. Supports can be bought, especially in relatively strong stocks.
Those now re-testing the 200dma show both relative strength and support. We have used CNI as an example, and a scan shows V, GE, BDX and others in similar positions.
General Update - 16th December
The majority of stocks topped this week and should be making their first leg down with a bottom expected early next week around the 19th December. We can look to buy for a xmas rally but this may only get to lower highs and another top around new year. New charts will be uploaded next week.
GOOGL - 19th September
Trade Type = No Trade Yet (Bigger Picture View due to high clarity)
General Update - 29th August
Stocks have dropped sharply and are now at inflection points. AAPL and BAC are examples of set-ups that should work if there is any chance of a recovery. If they fail, this could be a very powerful move down.
Inflection Points - 23rd August
Markets have moved swiftly to downside inflection points. If the recovery rally is to continue, stocks like AAPL and AMZN need to hold key levels such as 166 and 130 respectively.
General Update 15th August
We strongly believe markets are due to turn lower this week, but we do not want to be reckless and call too many shorts before we can be confident stocks are turning. Once we see some evidence of a top and we can define risk, we will post more short set-ups.
Note: most stocks have hit our upside targets. See NFLX, COST, MSFT etc... this doesn't make them a short but does help support the idea that markets could trun here.
BSX 12th August
Markets are at an inflection and while we think they should turn down, we have yet to see evidence of this.
BSX is a good example of what we are looking for to support our view - when bullish set-ups fail after working for so long, it signals a change in character and direction.
AAPL 25th July
Trade Type: Earnings - Wait for Clear Signal
Earnings Season
18th July
While there are often clues to a stock's direction before an earnings report, the risk is too high for us to recommend trades on the day of the release. Either we try to get in early in the lead-in action, or react after the release with a clear plan and defined risk.
Earnings season kicks off properly this week and we will cover some of the banks this week.
BAC and GS report today. BAC looks bullish but would need to clear $33 for clarity. When trades set up, we will publish analysis / charts.
DBC - 12th July
Trade Direction: No Trade / Directional signal very close
BA UPDATE- 29th June
Trade Direction: Wait
Trade Type: Breakout
COST - 27th June
Trade Direction: Long
Trade Type: Breakout
AAPL - 21st June
Trade Direction: Long
Trade Type: Buying for a Bounce / Major Bottom
Update - 14th June
Trade Direction: Short / Long
AMZN is a good and fairly clear example of the position of many stocks - testing support and near the end of the sequence starting at last week's high, but not quite complete and still vulnerable to another flush.
Stronger stocks and energy names are testing their 200dmas, but since these are being sold to cover margin calls elsewhere, these stocks also need time to set up. CB and NEM look decent going forward.
Update - 13th June
Trade Direction: Short / Long
Short trades in Tech (and others) have travelled further than expected but are now close to reversing higher again. We suggest to close partial positions into weakness and Monday's gap down.
Long trades are setting up, but not quite there at Monday's open. Tuesday look more likely for a bottom - we will update as trades set up.
Update - 9th June
Trade Direction: Short
Short-term short trades in Tech names such as AMZN and GOOGL are setting up slowly. GOOGL has its 50dma at around 2400 and declining, so either one last spike higher or several more sessions consolidating and it will be tested.
Note: there should be a later proportional rally so shorts can be reversed back to longs after an approx. 50% retrace. We will update once the decline starts taking shape.
Bank of America (BAC)
27th May
Trade Direction: Long
Trade Type: Breakout