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HT Weekend Watchlist- Small Caps on FIRE! (Dec 10, 2023)

Humbled Trader's Weekly Stock Picks & Market Update

Author

Humbled Trader
December 10, 2023

Hello Humbled Traders!

Small cap market has been on fire the past week. Recent short squeeze plays like VVOS and MLGO have woken up many other dormant stocks under $500 mil. However, sentiment in the small-cap land shifts extremely quickly. Sometimes the turnover could last less than a week.

A really good example we saw was MLGO. Even though the short squeeze occurred only on Wednesday, by the next day, the momentum had dried out. New gappers like SVFD and INTS did not hold gains for long. Brand new breakouts on ALT were very short-lived as well.

This is a good reminder that if you choose to participate in small-cap momentum, always be vigilant of subtle details such as short-locate pricing, availability, volume shifts and so much more.

Nonetheless, the rest of December should present us plentiful of opportunities for both longs and shorts.

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Here are just some stocks that the HT Community is looking at next week:

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AAMC $6.66

  • Small cap low float name that’s been accumulating since last week

  • This isn’t a breakout day trade, but potentially a consolidation long play on a day it accumulates enough volume on the day

  • Keep this one on watch. It needs to trade above 6.21 KL with enough volume to become a potential long play.

  • Stock has the potential for a big breakout move to $8+ if the prior conditions are met.

  • Position Disclosure: No Position

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MBI $13.42

  • Big daily breakout with high volume. Heading to test 52 week high resistance around $14

  • Leaning long biased if the stock can continue to hold 12.9-13 area daily KL

  • Position Disclosure: No Position

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ALT $6.48

  • Big rejection off of that 7.4-8 breakout area

  • Leaning short biased if the stock can retest that area again and see the same selling pressure as last week.

  • However, IF the stock actually breaks through and consolidates above 7.4-8, this can turn into another big squeeze play for longs

  • Leaning cautiously short biased at the start of the week, but very open to both sides in case we start trapping shorts.

  • Position Disclosure: No Position

🗞️ Market movers you might’ve missed:

- MicroAlgo Inc. ($MLGO) MicroAlgo Inc. announced plans to establish a practice base to train graduate students for the university
- How we traded: FHOD Breakout Long, Bagholder Short

- Uber Technologies Inc. ($UBER) Uber shares are trading higher after an announcement that the company would join the S&P 500 index.
- How we traded: Gap Up Reversal Long.

- Clearmind Medicine Inc. ($CMND) Clearmind Medicine released positive trial results for cocaine addiction treatment.
- How we traded: Bagholder Short.

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📣 Strong Job Growth in U.S., Yet Interest Rate Cuts Expected

Despite a strong U.S. labor market, traders anticipate the Fed will begin reducing interest rates in May 2024. November saw an addition of 199,000 jobs, exceeding expectations, and the unemployment rate fell to 3.7%. The Fed is expected to maintain the current rate range of 5.25%-5.50% in its next meeting. Rate cuts are projected throughout 2024, aiming to align with the expected cooling of inflation, rather than as a response to labor market conditions.

💡 Market Sentiment: Bullish. The stock market has been optimistic in Q4, reflecting expectations of interest rate reductions.

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Email Disclaimer:
The Watchlist Emails are NOT trade alerts to buy or sell. We are not financial advisers. The above information is for educational and entertainment purposes only. Investing of any kind involves risk. While it is possible to minimize risk, your investments are solely your responsibility. It is imperative that you conduct your own research. We are merely sharing our opinion with no guarantee of gains or losses on investments. You accept our Terms and Conditions.