1. $Datadog(DDOG)$
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• DDOG has been one of the strongest performers over the last two months. After breaking out of a long-standing base in late November, the stock surged from $125 to $170 in just two weeks, all while holding above its daily 10-EMA without a single pullback. This impressive move came on high relative volume, showcasing strong investor demand.
• What sets DDOG apart is that it’s in one of the most resilient market groups—software. The stock has been building a volatility contraction along its daily 10-EMA and 20-EMA, consolidating and holding steady with support on any pullbacks below the 10-EMA. This setup indicates strong demand and suggests it could be ready for another leg higher once the market conditions stabilize.
• While we’re not looking to take a position today, especially ahead of the Fed's rate decision, DDOG is one of the names we’re keeping a close eye on. If the relative strength continues and we see a high-volume breakout in the coming days, it could present an attractive entry opportunity.
2. $Sea Ltd(SE)$
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• SE is another stock we’re closely monitoring right now. The Chinese internet and mobile platform company, which offers online gaming services, has been showing strong relative momentum. It has been holding above its daily 10-EMA and 20-EMA while building a series of higher lows as it consolidates. Over the past few months, SE has climbed from $80 to $120, demonstrating solid strength during this period.
• We’re taking a similar approach to SE as we are with DDOG. While we’re not looking to enter right now, we’re keeping track of its relative strength. If this momentum continues and we see a solid setup form, it could present an opportunity in the near future. For now, we're staying patient and watching how things develop.
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