Where's the Momentum
Last week, we talked about the high likelihood of enterprise software stocks outperforming. This is exactly what happened. Many gained 5-10% last week providing excellent trading opportunities. I specifically highlighted TWLO, which went from 103 to 115.74. I expressed my bullish idea via TWLO Jan10 $105 Calls purchased at 1.28 and TWLO common stock. See the details below.
Now that most software stocks seem extended and the market averages seem to be losing a bit momentum, where should we be looking for new ideas next week?
The JPM Health conferences goes from Sunday to Tuesday this week, which might act as a catalysts for many biotech and medical devices stocks: BPMC, BHVN, PODD, etc.
Also, the new earnings season starts next week with the big banks reporting: GS, JPM, BAC.
Keep an eye on highly-shorted stocks.They have been all the rage lately. See what happened with BYND and LK last week. Some other highly-shorted stocks: CGC, BKE, PETS, DDOG, etc.