Stocks in Play - January 28th 2025

TLDR Stocks in Play: RCL, AI Stocks

Welcome to today's Stocks in Play report. Below are the key stocks to watch, along with brief x-ray and analysis.

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1) AI Stocks (Rating: B+, Single Day)

Catalyst: Today I will be focusing on some of the AI Stocks from my top picks lists. Many were hammered yesterday right down to previous key levels. These stocks will be active today there is no doubt about that. Focus: NVDA, CRDO, ALAB, MRVL, AVGO, CEG

There was an opportunity for the brave to take these late in the day yesterday. However I think there will be ample opportunity in them today also intraday. I am expecting retests of key levels and bounce. Watching VIX, if this spikes I step aside and the selling potentially continues. I am not looking to short these names here but others may do well doing it.

Honorable Mention to: RCL - Solid beat on EPS, slight miss on Revs but strong guide and bullish commentary from management. Growing Revs and EPS. WAVE season bookings are off to a record start, with booked load factors in line with prior years and at higher rates. Solid non AI Name for today.

Market Awareness

Yesterday was a real market moment. I’d be surprised if we aren’t able to look back in a few weeks or months and see a real reason for the sell off rather than simply a Chinese company making some AI efficiency breakthroughs. I think it is related to Tariffs (See Trump Comments) or some other not yet fully explained narrative. Regardless we follow price. Yesterday the entire AI Trade rerated in one day. Bounces on these extremely oversold stocks seem to be fading somewhat pre market. A drop like yesterday usually doesn’t happen in isolation and then we carry on to new highs. While I am cautious here there is still plenty of opportunity in this volatility. Hitting singles and out performing red market days is what I am looking to do here. Traders should relish this reset.

The AI Stocks are certainly ACTIVE as SIPs there is no doubt about that. Opportunity for day trades with bounces and fades in these names today. We have the FED tomorrow and big earnings in the Mag7 names kicking off also. Positive results in a few of those names could erase this drop easily.

After Hours I’m Watching: SBUX, QRVO, NXT (Earnings)

Tomorrow Morning I’m Watching: VFC, ASML, DHR, TEVA, EAT (Earnings)

Top Pick Watchlists:

• Top Picks - November 2024

  • LONG: ALAB, HNST, SNOW, ESTC, RKLB, SMTC, URBN, PLTR, GAP, TSLA, SE, RDDT

• Top Picks - December 2024 

  • LONG: CRDO, MRVL, OKTA, FIVE, RBRK, AVGO

• Top Picks - January 2025 

  • LONG: CEG, FUBO, BLK, GE

Sources & Services I Use in my Trading:

• Finviz - Short Interest, Float, Articles, Fundamentals (Free)

• Benzinga Pro - News Source + News Squawk + Earnings Data (Paid)

• Tradingview - Charting & Scanning (Paid)

• Koyfin - Fundamental Data (Paid)

• EarningsWhispers - Earnings Calendar (Free)

• Tradersync - Trade Journal (Paid)

_{PS: There are many ways to trade stocks in play. It does not have to be the one that keeps going straight up and sometimes it doesn’t even have to be day one of the catalyst. Everyone must find a setup, timeframe and method that works for them. This list is supposed to educate on the criteria I use and the methods in which I find Stocks in Play. Yours may differ and that is completely okay.}