Market Chat and Introduction to Six Figure Slide Trading
Wednesday, June 21, 2023
4:30 pm ET / 1:30 pm PT
Listen in as Option Hotline Chief Options Strategist, Keith Harwood, talks today's markets with guest panelist Jake Davis at this live market chat webinar. Jake will introduce us to the Six Figure Slide trading program and Keith will compare with his Option Trend Trader program.
Listen in and get your questions answered live by Keith and Jake! Save your seat today as all attendees will receive a free giveaway!
Artificial intelligence (AI) stocks are exploding, as hoped.
For one, according to Grand View Research, the global AI boom could grow from about $137 billion in 2022 to more than $1.81 trillion by 2030.
Two, according to Marketing AI Institute, “Artificial intelligence will, on average, boost rates of profitability by 38% and provide an economic boost of $14 trillion in additional gross value by 2035, according to research by Accenture.
Three, investors can’t get enough of the ChatGPT craze. In fact, according to Economist,” Since ChatGPT was launched in November, a new mini-industry has mushroomed that has defied the broader slump in tech. Not a week goes by without someone unveiling a “generative” artificial intelligence (AI) underpinned by “foundation” models – the large and complex algorithms that give ChatGPT and other AIs like it their intelligence.
Four, the U.S. Chamber of Commerce just said, “virtually every business and government agency" will use AI, noting that it will have a "profound" impact on society, the economy, and national security,” as quoted by Seeking Alpha.
So, it comes as no surprise that some of the AI stocks we’ve spoken about are moving.
Nvidia (NVDA)
Nvidia is a no-brainer in the AI space.
AI has been a strong catalyst for NVDA, too. CEO Jensen Huang told analysts that activity around Nvidia’s AI infrastructure “has gone through the roof” since the public debut of Open AI’s ChatGPT, as noted by MarketWatch.com.
For many years, I have observed a similar trading pattern for most newly issued stocks. I have been particularly sensitive to the trading activity of these new issues because I was in charge of trading these stocks when I first entered the investment business over 23 years ago. Although nothing in the investment business is for certain, and most techniques, following a period during which they work exceptionally well, undergo a period of erosion and disinterest, this method seems to have successfully withstood the rigors of various market environments and of time. Whether the climate for public offerings is hot or cold, this technique on balance seems to work, although of course, the degree of success seems to be influenced somewhat by the overall market.
Typically, once a new issue begins to trade, I look for the following characteristics regardless of the price at which the public offering is completed. Often, price will either advance or at least move sideways for a few days. The reason for this price movement is that the selling syndicate that initially offered the shares to the public for sale supports the price of the stock for a period of time. If the original offering is priced conservatively, the syndicate’s price support activity is not as critical. However, if the underwriter attempts to raise the maximum amount for the selling company, it may stretch the market to the point where prospective buyers believe it to be too expensive; price then declines. In any case, the syndicate usually is able to muster enough buying to support the offering price.
The first profit opportunity we will review is in CABA, or Cabaletta Bio Inc. CABA is a clinical stage biotechnology company. It is focused on the discovery and development of engineered T cell therapies for patients with B cell-mediated autoimmune diseases.
The monthly chart shows that CABA has been above the moving average line since October. After a fivemonth pause, an upside breakout appears to be imminent.
The daily chart shows that CABA rocketed from below 1 in October to almost 13 in February. The next targets are 15 and 18.
We recommend buying CABA stock at the current price level.
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