Stocks in Play - January 3rd 2025

TLDR Stocks in Play: TSLA, CRNC

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) Tesla Inc. (TSLA) (Rating: C+, 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: Tesla missed on their delivery numbers yesterday and the stock took a big hit. However they announced this morning that their December sales in China increased 12.8% sequentially from November marking it’s biggest ever annual sales in China. Up 8.8% on the year. While this may not be a major catalyst I believe the stock is IN PLAY. We are now down 5 days in a row (rare) with a gap down yesterday. On a less quiet day then maybe I would be looking at something else but I think this will offer opportunity today. Canaccord Upgrade this morning $400 PT.

2) Cerence Inc. (CRNC) (Rating: B+, Multi-Day)

Industry Group: Packaged Software, Market Cap: $332m,  Float: 40m, Short Interest: 18.3%, Days to Cover: 2.2, Exchange: NASDAQ

Catalyst: On Thursday announced multi-year agreement with JLR (Jaguar Landrover) to develop next gen in car experience. This morning they have announced an expanded collaboration with NVDA to advance capabilities of CaLLM Family of Language Models. Nice story stock example. Chart poisted for a Breakout. High Short Interest. Good single day play and due to the chart if it doesn’t fade today could be a decent multi-day speculative stock.

Market Awareness

Quiet news morning today, expected. Monday we will really kick back in to gear. Yesterday I think we MIGHT have put in a short term bottom. Possibly good for a few days bounce. I’m thinking very short term right now as I still believe we may stairstep down/sideways for weeks or months. But for now I’m just thinking 2 to 3 days ahead all the time. I feel like stocks may have a positive day today barring any macro news. Yesterday we undercut and closed above the previous low set on Dec 20th. Like yesterday I will be cautious if the VIX is ramping.

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

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.}