Its time to do an update on the hot stocks I'm watching and the stocks I own into August 2020. August is an average month for the stock market, normally up 0.60%. Dating back to 1928, September is the worst month for the S&P 500. The S&P has an average decline of 1% in September so keep that in mind as you're investing/trading.
#1 - Eastman Kodak (KODK) -
KODK rallied from $4-$60 in the last few sessions on titanic volume. Today alone, KODK was halted 20 times due to the volatility in the stock. I don't believe Kodak is worth anything north of $15 but when you have high demand and low supply due to positive news, you can easily see this type of move. KODK is likely done for now but I will be watching resistance between $41-$42 as well as between $47-$48, both levels failed Wednesday afternoon. On the downside, if $19-$22 is retested, you could easily see a large bounce.
#2 - Kandi Technologies Group, Inc. (KNDI) - KNDI is the new hot stock after the company
released news just hours before the close. Shares are gapping higher in after market trading, up another 40%. KNDI will have resistance around $14, $14.90, and then a large area between $16-$18 and then the record high is up at $22.53.
#3 -
Grayscale Bitcoin Trust (GBTC) - GBTC, a stock I own, tracks Bitcoin and is up 51% in 2020.
Bitcoin broke through a downtrend and is now facing some minor resistance between 11,000-12,000. After consolidating for two days, Bitcoin is trying to resume the uptrend into next week. The key level to watch on Bitcoin is 14,000 and $17.40 on GBTC. This is my 3rd largest position, below TSLA and BYND.
#4 - Tesla (TSLA) - I recently sold 1/3 of my
TSLA at $1,635, paid the taxes, and now I'm hoping to reload in the mid $1,300's. Battery day is on September 22nd so I only have a very narrow window to get back in. Otherwise, Tesla stock is likely heading for $2,000 into 2021 and its my largest portfolio position.
#5 -
Beyond Meat (BYND) - Beyond Meat (
BYND) reports earnings Tuesday, August 4th. The stock is currently forming a base between $120-$126 heading into the numbers. The 200 day moving average is down around $104 so if something were to go wrong, this is likely the area of big support. I have a feeling Beyond Meat will report a surprise profit which could easily send shares back into the $140's. This one is difficult to predict but I love BYND long term and its my 2nd largest position, only below Tesla.
#6 - Virgin Galactic (SPCE) -
SPCE rallied from $15-$27 in one month but is now seeing a correction. The interior cabin was nice and all but we want to hear that they are done with test flights, have all of their certifications, and are ready to take Sir Richard Branson on the first flight. I strongly believe that this stock will rip in 2021 and the only risk is another plane explosion. The potential long term gain is worth the headline risk which could sink the stock 50% in one day.
#7 - Nikola (NKLA) - I started buying Nikola (NKLA) stock last week and have an order to buy more shares at $28. I'm still expecting some selling pressure due to the insider lock up of shares and warrants. My
NKLA price target for 2021 is $42 per share and I will take a fresh look at the company and stock when it gets there. While I'm still on the fence on Nikola long term, I see a rebound once this wave of selling ends.
#8 - Hyliion (SHLL > HYLN) - No new news to report since we are still about two months away from the IPO. There should be strong support between $17-$19 and it will be interesting to see what happens after the public offering. Based on the technology, I feel like this stock is a bargain right now.
#9 - Vital Farms (VITL) & Li Auto (LI) - These IPO's will begin trading on Friday. I will likely buy VITL right when it opens and I may even hold half for a few days. I'm undecided on LI but may buy right when it opens. Both should see volatility for sure!
#10 - BigCommerce (BIGC) -
BIGC competes with Shopify (SHOP), a company that reported blow-out earnings today. BIGC will go public next week and likely see some nice upside on IPO day. I plan to buy BIGC right when it opens and may hold half for a few days.
