To The Moon

C3.ai will report their Q4 earnings on May 31st after the close. The consensus EPS Estimate is -$0.17 (+19.0% Y/Y) and the consensus Revenue Estimate is $71.34M (-1.4% Y/Y). C3.ai rose more than 33% with high volume of 107 million shares on Monday on the back of new Nvidia announcements. SoundHound AI gained more than 9%, while Nvidia parred back some of its gains to close up 2.99%. C3.ai appears to be over bought C3.ai has broken above its previous swing high of $34.68 in early April, as it starts to make new 52-week highs. It has gained more than 112% since May 15 this year. C3.ai Weekly It's weekly chart is impressive, as it has made 3 huge candles, which implies a parabolic rise. A parabolic rise is never healthy, as eventually the stock will have to give back its gains. A simple

The S&P 500 is back into a bull market, after closing strongly above 4200 points last Friday. This bull market started October 13, 2022 and now it has closed more than 20% off the lows of the last bear market. In fact the S&P 500 together with the Nasdaq Composite has been so strong this year, that many investors have missed out on this rally, that has been going on for 8 months. How is it possible if all the media has been painting recession in 2023, and interest rates keep rising, but a bull market can be born? One key point is the market tends to move 6 to 9 months ahead of the economy, as it is always factoring future earnings potential.  Long term trend is bullish, 50 daily moving average (MA) above 100 MA, which is above 150 MA which is above 200 MA. However 200 MA is st

When facing paper losses, an investor has to ask why is the stock price down from when he purchased it. Are revenues and earnings declining for the past few years, or is the decline due to temporary macroeconomic conditions? What is the intrinsic value of the stock? Has the investor over paid for the stock? Is the business a still a good quality business, with a strong economic moat that its competitors struggle to break into? For example, if you look at Apple's annual filing Form 10-K, it mentions that Apple's competitors often sell electronic products are very thin margins, and sometimes those competitors are loss making selling these electronics, in an attempt to undercut Apple's premium pricing. Eventually when the market conditions turn, good quality businesses will eventually recover

Considering that Nvidia is now at all time highs, and reaching close to 1 trillion market cap. The stock is now way much higher than its November 2021 high of $346.47. Due to the gap up on earnings and drifting too far away from the 50 daily moving average, it is likely possible that the stock should work its price action downwards, but give it some time for this to play out. One trade idea is to sell a cash secured put of strike price $320, with contract expiration on third Friday of July. This will allow you to collect around $525 per contract. However you have to be prepared to own a hundred shares at $32,000 if the strike price is reached and the option is assigned. $NVIDIA Corp(NVDA)$ 

Tesla jumped 4.85% on Monday's trading session on almost no news. Looking at the technical analysis of the price action, the stock has filled the gap down after earnings on Apr 20, 2023, where traders have bought into the stock and filled the gap. Beware the bull trap A bull trap happens when the market maker traps those who went long, it will make the price action look bullish and then the price will drop, trapping in the bulls. As TSLA approaches the 200 daily moving average, this has been a huge resistance zone in 2023. Also the long term trend shows lower highs and lower lows, and until the market changes its opinion of Tesla's earnings in 2023 and 2024, it will remain in a down trend and test the January 2023 low of $101.80 again. Likewise the Ichimoku Cloud shows a huge red cloud of

The latest news on raising the US debt ceiling is that President Biden and Speaker of the House of Representatives Kevin McCarthy remain optimistic that they are getting close to working out an agreement to raise the debt ceiling, in which they will speak again on Monday as President Biden returns to Washington after his trip to Japan. The two leaders held a phone call on Sunday and both sides were positive on their call. The S&P 500 gained 1.65% last week, reached a high of 4,212.91 points on last Friday but closed slightly down at 4,191.99 points. Surprisingly, the VIX (Volatility Index) remains under 20, indicating that the markets are still in a neutral region. The VIX was between 25 to 30 in mid March but has dipped to below 20 since then. It is likely that as the debt ceiling im

Grab Holdings ( $Grab Holdings(GRAB)$ ) plunged 15% on Thursday's session after reporting their Q1 2023 results. Consumers on its super-app who use it for ride hailing and food delivery are spending less on Grab's mobile app. Gross merchandise value of $4.96B in Q1 increased 3% Y/Y, slowing from the 11% Y/Y pace in Q4 and trailing the $5.22B Bloomberg consensus estimate. To illustrate the deceleration, Grab's GMV increased 24% for the full-year 2022. The quarter's increase in GMV was driven by continued growth in its Mobility business, which was offset by softer Deliveries demand, with both Chinese New Year and Ramadan falling in Q1. Incentives declined to 7.9% of GMV in Q1 2023 compared with 8.25% in the preceding quarter and 11.6% in t

The hedge fund giant founded by Ray Dalio, Bridgewater Associates in its latest 13F filling for the first quarter of 2023 added 1.36M shares of Grab.  Grab is a major ride-hailing and food delivery player in South East Asia, which benefited from the high mobile internet penetration in the region. The Covid19 pandemic helped to boost its delivery platform as lockdowns meant that restaurants were not open to diners, instead relying on deliveries to generate income. Grab current has around 71% market share in ride hailing, and 54% in food delivery.  Mobility Is their only profitable segment Grab Q4 & Full Year 2022 Segment Adjusted EBITDA In its last financial results reporting, its segment adjusted EBITDA revealed that its mobility segment grew 43.1% Y/Y, while its delive

The bull trap pattern is starting for form, trapping liquidity once again for those who decided to go in long after Palantir reported their Q1 2023 earnings. Similar to a quarter ago after Palantir stock made a high of $10.31 on Feb 16, 2023, the stock began to sell down.  As the stock gapped up from close of $7.74 after to earnings to $9.22 at the start of trade on May 9, 2023, there is some inefficiency in the price action, where the price might make an attempt to close the gap. Current short interest is 7.22%, while forward PE is around 46 times forward earnings estimate. If options is your thing, might look at buying put at strike $9 expiring on June 16, 2023. Alternately if you already own 100 shares of PLTR, might consider selling covered call at strike of $10, collecting prem

Palantir Technologies just reported its second consecutive quarter of Positive GAAP net income after reporting earnings on May 8 after the close. The stock popped after earnings and gained more than 20% in after hours trading. Summarising their Q1 2023 highlights, Palantir recorded: * GAAP net income of $17 million -> representing second consecutive quarter of positive GAAP net income * GAAP income from operations of $4 million, representing a margin of 1%, up 1,000 basis points year-over-year -> representing first quarter of positive GAAP operating income * GAAP earnings per share (“EPS”) of $0.01 * Adjusted EPS of $0.05 * Total revenue grew 18% year-over-year to $525 million * US revenue grew 23% year-over-year to $337 million PLTR Q1 2023 earnings presentation Interestingly, sto