After a very strong bounce over the past seven trading sessions, stocks are set to take a rest. Some are pulling back, and some are consolidating. I'm watching patiently to see how charts develop from here.
One of the best things about the recent bounce is that it helps very clear technical levels to develop. I have raised some cash into this recent rally, and now I am looking to put it back to work as charts develop.
In the last week of 2021, I wrote about ten stocks that I plan on actively trading in 2021. The ten stocks are Urban-Gro (UGRO) , Xeris (XERS) , Alto Ingredients (ALTO) , IonQ (IONQ) , Humacyte (HUMA) , AirSculpt Technologies (AIRS) , Trio-Tech (TRT) , Elys Game Technology (ELYS) , Ondas Holdings (ONDS) , Li-Cycle Holdings (LICY) .
Now is a good time to look at each of these stocks and develop a game plan for trading them as they develop.
UGRO has earnings due on March 29. This stock still looks like a tremendous value, but it trades very thinly and is in the cannabis sector, which has been out of favor. I'll be looking for opportunities to add after earnings.
XERS posted a solid report, and the chart is developing well. The key for this company is some contract news with big pharma. There is no way to time if and when that may occur. I'll add on weakness as the chart develops
ALTO had a fantastic earnings report and continues to transition its business; however, the recent surge in commodity prices has added an element of uncertainty. I'm holding and waiting for some clarity as to the impact of corn and natural gas on the company
IONQ is an early-stage play and has been acting well on promising developments in the quantum computing area. There is an unlock of shares coming up, and that may create short term pressure
HUMA is another early-stage play that continues to roll out positive news, but it is a longer-term play that is not likely to move much in the short term.
AIRS is a cosmetic surgery play that is seeing good growth but doesn't look like it is going to move much in the near term.
TRT is a play on semiconductor testing related to EVs. Supply chain issues are a problem here, and a plant in China has been restricted due to COVID issues. It is still is promising but too thin and uncertain currently
ELYS is a gambling play and is doing everything right and has good news flow, but the stocks are unable to gain price momentum. I am holding and will buy on weakness, but it may take a while for it to perform
ONDS posted a very good earnings report and moved sharply, but this is a long-term play on railroads and drones and trades thinly. I expect to see some opportunities to reload this position on pullbacks.
LICY is a play on battery recycling. It came under pressure for valuation reasons but has positive news flow and is holding support around $8. I am watching for further news development to move the stock
Of the 10 names, my favorites right now are ONDS, UGRO, and XERS, but all of them have the potential for positive news developments to drive them higher.
(Please note that due to factors including low market capitalization and/or insufficient public float, we consider UGRO, TRT, and ELYS to be small-cap stocks. You should be aware that such stocks are subject to more risk than stocks of larger companies, including greater volatility, lower liquidity and less publicly available information, and that postings such as this one can have an effect on their stock prices.)
