By Nathan Bear, Trade of the Day, 2024-06-27
The tech sector has been all over the place after the Nasdaq made yearly highs last week.
Is a sell-off coming or is this just a pause before the next leg higher?
You can tune into CNBC and get a number of opinions from the talking heads.
But my goal isn't to debate… it's to find high probability trades that have a chance at delivering outsized returns.
To do that I use my proprietary AI scanner S.A.M.
You see, while the market might be choppy now, there are plenty of individual stocks with some awesome setups.
Here are 3 that I found from the help of S.A.M. :
CAVA Group (CAVA)
Now, this isn't the first time I've written about CAVA, the Mediterranean restaurant chain which offers customizable, healthy fast-casual dining.
In fact, I've had my eyes on it for a couple weeks now.
And if you look at the chart above, you'll see it's been just hanging around the last few trading sessions.
But the reason why I still like it is because it has multiple squeezes setting up.
According to SAM, it has a daily squeeze, and A+ setups on the 130-minute chart and the 30-minute chart.
The Squeeze indicator is essential in determining the right time to trade, as it signals the end of a consolidation phase and the potential start of a new price movement.
I already have some call options in the symbol, and will likely look to add.
Netapp Inc (NTAP)
NetApp (NTAP) provides data storage and management solutions that help businesses efficiently store, access, and protect their data across different environments, including on-premises and in the cloud.
If you take a look at the chart above you'll see that it's also experiencing a nice pause/consolidation.
And according to S.A.M. It has multiple A+ setups, which include the 195-minute, 130-minute, and 78-minute.
I'm in this one small right now, but will likely look to add.
Tesla (TSLA)
The EV maker has not had a great year but the stock is starting to pick up momentum. And with Elon winning back his pay package, it could be a catalyst to push the stock price higher.
At the time of this writing TSLA had a 5-minute squeeze, with positive momentum on the 15 minute, 30 minute, 1 hour, and 2 hour charts.
According to S.A.M, we have A+ setups on the 5 minute and 10 minute charts.
I'm not in this one yet, but something I'm watching to take a long in.
If I do, it will be with options. And given how expensive TSLA options are, I will probably buy something OTM for a potential “lotto” play.
The post 3 Stocks I Like in This Choppy Market appeared first on Trade of the Day.
