I don't prefer getting long stocks that aren't breaking through to some kind of major new high or an all-time high. But every so often the stars align to play for the end of a major downtrend with some clearly defined levels of support to lean against.
We're finding that right now in the recently maligned Marijuana stocks space.
The fine gentlemen at All Star Charts have released with latest Quarterly Playbook with themes to be aware of for the next three months, as well as trade ideas within sectors and individual stocks that are setting up. Head over here for a deep dive and great read.
One idea that stood out to me is an e-commerce company focused on pet supplies and medications. No.... not pets.com. LOL
Well, since we're all stuck at home for the foreseeable future, we might as well spend some money on making "home" the best we can make it. Those long dormant "some day" projects that have been rattling around our brains all seem to be taking on a smidge more importance these days.
Americans seem to be getting back to work -- at home, ON the home. The chart of Home Depot $HD share price certainly bares this out as we're currently hanging out at levels above the pre-coronavirus selloff:
In the most recent ASC Monthly Conference Call, JC was bullish on Slack Technologies, $WORK. So, it's time to get to work on today's pullback and take advantage of the opportunity to participate at better prices.
Bullish internet stocks continues to be a theme that interests me. Regardless of your political affiliation or taste for conspiracy theories, the effects of the pandemic are still being felt and life doesn't appear to be getting back to "normal" any time soon.
This means many people still need ways to find ways to shop and entertain themselves at home.
In the latest monthly conference call for All Star Charts subscribers, JC highlighted some stocks in the internet sector that should continue to benefit in this tape. Does the story help? Sure, but more importantly the charts are telling the real story.
If you believe the longer-term uptrend is still in tact, then you have to love opportunities to buy on the dip during market pullbacks.
And the best place to look for these dips is in the strongest sectors that have been leading us higher since the depths of March. The software sector is in my sights today.
In a recent post on Chinese Internet stocks, the team laid out the bullish case for why many of these names look set up to run. Since publishing this post, many of the names discussed have indeed begun breaking out higher.
And one of the names with a pretty impressive base is looking like it's about ready to join it's friends.