From the desk of Steve Strazza @Sstrazza.
Welcome to our “Under The Hood” column for the week ending December 04, 2020.
What we do is analyze the most popular stocks during the week and find opportunities to either join in and ride these momentum names higher, or fade the crowd and bet against them.
We use a variety of sources to generate the list of most popular names. There are so many new data sources available that all we need to do is organize and curate them in a way that shows us exactly what we want: A list of stocks that are seeing an unusual increase in investor interest.
Whether we’re measuring increasing interest based on large institutional purchases, unusual options activity, or simply our proprietary lists of trending tickers… there is a lot of overlap.
The bottom line is there are a million ways to skin this cat. Relying on our entire arsenal of data makes us confident that we’re producing the best list each week and gives us more optionality in terms of finding the most favorable trade setups for our clients.
As the market continues to grind higher, we continue to find plenty of new setups with which to express our bullish thesis on stocks.
Let’s dive right in and check out the latest.
Click table to enlarge view.
We'll start with an update on the Southeast e-commerce giant, Sea Ltd $SE. We outlined a trade setup for the stock in our August 22nd edition of Under The Hood.
In the chart above, you can see price accelerating to the upside after breaking out of a continuation pattern and closing the week with an 8% move to fresh all-time highs. SE is also breaking back toward fresh record highs relative to the overall market.
It's already well on its way to our target of 235. We think it gets there sooner rather than later as we expect it to reassert its leadership after this recent breakout.
Here's another update on a stock we covered back in August. This is the Cloud-based e-mail provider, Hubspot $HUBS. Price recently achieved our price target just above 380.
After a constructive rally followed by some consolidation, HUBS is giving us another opportunity on the long side.
With record highs on both absolute and relative terms, and a well-defined level to trade against, we want to be long HUBS if we’re above 381 with a 3-6 month target at 570.
Now let's take a look at some of this week's new names.
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