3/28/2021 Markets at all time highs, previous post highlights changes to BEPC, REGI, PTON, and XLE. 16 stocks added to my watchlist.

Hi everyone, welcome back. Markets went higher this week again, and momentum is still pointed up. However, futures are down a bit, so perhaps we will be red tomorrow (Monday).

Either way, since we are still in an uptrend, I’m going to hold my positions. Earlier this week, I added a stop loss to BEPC, removed my second buy order on REGI, bought a half sized position in PTON at 103.23 and sold my XLE puts for a 44% loss. You can read more about that from the previous post written on 3/25/2021.

There are 16 stocks that look good for going long on, with a large amount being beaten down Chinese stocks. The 16 stocks are listed below, with my favorite charts listed earlier. I will go through 4 charts that I like.

MTCH, NTES, YY, TWTR, BILI, VIAC, BIDU, PRLD, JD, WB, BABA, SQ, TME, VIPS, IQ, FREQ.

MTCH daily chart below.

Price is currently too high if we use the ideal wider stop loss (near 125). However an entry now with a stop loss at 131 (~7 dollars down) – just below the Friday low of 132 – should be good enough. Our profit exit remains at 155, which is a risk to reward of roughly 1 to 2.5 ($7 risk, $17 reward).

NTES daily chart below.

An entry now is decent, but the hold period will likely be longer than my usual swing trade length of 8.5 days.

YY daily chart below.

This one is at a good buy level right now. It’s going to need to not go below the most recent low from Friday (~$92) or I think the chance it continues lower increases drastically. For these kinds of trades, I like going in with a half sized position because I’ll either get stopped out or it’ll hit my profit exit really quickly. Another way to play this would be to use a wider stop (~$86) with a profit exit near $116. Both these trades have a risk to reward ratio of roughly 1 to 2.

TWTR daily chart below. I really like this trade here because most of the recent pullbacks stopped here, but ideally we would be buying near 56. Maybe selling weekly cash secured puts that would result in a cost basis near 56 is a good idea.

Entry now at 61 would have a risk to reward of roughly 1 to 3 (stop loss either at 57 or 58 and we sell at 70). Entry near 56 with a stop loss at 51 also has a risk to reward of 1 to 3. If it drops quickly to 56, we will use a wider stop loss to account for the increased volatility.

I am currently not in any of these positions, and won’t be able to enter all 16 of the stocks I listed in this blog post. I still have a lot of money tied up in ORCL (35% of my account), MRO (15% of my account), and PTON (10% of my account) as well as smaller positions in my Roth IRA. That means I have roughly 30% of my account in cash, which is no where near enough for 16 positions.

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