Stocks in Play - January 2nd 2025

TLDR Stocks in Play: TSLA, SYNA, GME

Welcome to today's Stocks in Play report. I hope everyone had a relax and recharge over the Holidays and New Year. I took a planned break from Trading and of course the Newsletter. I did however monitor the market and news to see if I missed out in any way. My conclusion was that I absolutely did not. I will repeat this break from the markets next year with even more conviction. I am adamant that finding time to switch off when the market switches off is very important long term.

That being said WE’RE BACK BABY! I’m treating the next two days as a soft relaunch of my routine and feel for the market to kick off 2025. With the real new year beginning on Monday. A lot of catalysts coming up, FED meetings, New Administration in the US and a big earnings period just around the corner!

1) Tesla Inc. (TSLA) (Rating: B, Single-Day)

Industry Group: Motor Vehicles, Market Cap: $1.3T, Float: 2.77b, Short Interest: 2.9%, Days to Cover: 0.8, Exchange: NASDAQ

Catalyst: The events that took place yesterday in the US are disturbing however I am seeing a lot of headlines and mentions about the Cybertruck explosion. I also think the photo is somewhat iconic outside Trump Hotel. They will release their Q4 deliveries at some point today. Also the Cybertruck is now eligble for the $7,500 EV Credit. If the delivery numbers are remotely positive (Above 500k) I think it could be a good SIP play today. Expect Tesla and Elon Musk to dominate headlines today. The stock also had a dirty close at the lows on Tuesday, this would be a perfect scam close to screw sellers.

2) Synaptics Inc. (SYNA) (Rating: B, Single-Day)

Industry Group: Semiconductors, Market Cap: $3b, Float: 38m, Short Interest: 11.5%, Days to Cover: 9.8, Exchange: NASDAQ

Catalyst: SYNA disclosed collaboration with GOOG to advance Edge AI for IoT. From my understanding this is an integration of Google’s machine learning system into Synaptic’s hardware. High Short interest and days to cover, with a low float. I am unsure as to how big a catalyst this is. My guess is not that important but likely enough to move the stock. This is a turnaround play and beaten down almost 75% off it’s 2021 high.

Honorable Mention to: GME - I realize this will be a complete AVOID for many people and that is understandable. However I am of the belief that Roaring Kitty is going to ramp up his Tweets and Memes over the next few weeks in order to try to squeeze Gamestop hard. This is a difficult one to trade but certainly worth watching. If there is any comparison to 2021 it may also mark the top in the meme stocks and hot air story stocks.

Market Awareness

As mentioned above the next two days are all about settling in for me and preparing for 2025 to really kick off from Monday onward. Obviously over Christmas we had some selling and a potential top in the most recent leg of the bull market that began in January 2023. This would be the end of the 3rd clear leg. How does this affect me trading SIPs? Intraday it doesn’t. Unless VIX is elevated and market is selling then I proceed as normal. With these pullbacks you will see big volatility in both directions. It does however make me cautious about any swings in the near term. If we look at the chart below you can see the break of the current leg but the bull market is very much intact. It would be great for 2025 to see a scary pullback right into the weekly channel lows. T2108 (Stocks above 40ma) has been flirting with sub 20 levels but I don’t think we’re there yet and it could be a choppy few weeks or months.

Top Pick Watchlists:

• Top Picks - November 2024

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

  • SHORT: TGT

• Top Picks - December 2024 

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

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.}