Monthly Recap: January 2021

Wrapping up the first month of 2021, Trading Solutions called out one multi bagger that turned out to gain over 400% in a matter of days. Bionano Genomics (BNGO) was first alerted at $1.60 and quickly rose to $7 before consolidating, gearing up for the next leg up. Another stock that we nailed on point was NIO. With NIO day happening on January 9th, investor enthusiasm was heavily seen through social media and we predicted that NIO stock would react positive to the annual event. We took advantage and gained approximately 25% before taking some off the table. Overall a positive month and we look forward to finding the next multi bagger next month.

Weekly Watchlists:

Top 3 stocks for January 4th-8th: BBBY, NIO, RIOT

With NIO day on January 9th, there will be lots of investor and trader enthusiasm heading into this trading week. I’m expecting NIO to reach my pt 1 50, pt 2 54.5, and possibly continue to ATH before NIO day actually happens. I currently have a swing position and plan to sell half 1-2 days before the event happens.

SGBX is a pure technical play. Looking for an entry near the 5.8-6 level and looking for a break above 6.7. Possible $1 gap up after that break. Currently don’t have a position.

BNGO- Lots of momentum and hype that is pushing BNGO to the upside.

Not sure how sustainable this price action and volume can last for but $3 and $2.5 are potential support levels. If both fail expect more room to the downside.

BBBY- My highest conviction trade for this week. From all the data and research I’ve extracted from social media and google trends, I’m expecting a beat on Q3 earnings that are happening Thursday morning. I want to reiterate that BBBY is one of the most shorted stocks on the market and a short squeeze will be inevitable if they beat. The beauty of this trade is the risk-reward. The maximum downside would be back down to $15.5 while the upside could be easily retesting 20.5 and beyond.

RIOT- One of many bitcoin stocks that will be running off the momentum of BTC on its massive move over the weekend. The key level of support that will indicate strength would be 17. If it breaks expect a flush down to 15.5.

January 4th-8th recap

BBBY- Unfortunately Bed Bath Beyond missed on both top and bottom line and dropped 10 % in stock price due their earnings. Therefore we didn’t see the short squeeze that would have been inevitable if they beat even slightly.

NIO- Pretty good read with my projections about what would happen with NIO’s price action last week. Pt 2 (54.5) proved to be quite a resistance area for 2-3 days before NIO was able to breakout and break previous ATH.

RIOT- With the momentum that BTC experienced throughout the past week all bitcoin miners experienced similar price action and all rose significantly. RIOT respectively gained 52% in the past week.

Top 3 stocks for January 11th-15th: IPOE, SBE, Crypto Sector

IPOE- Chamath had just announced last week that Social Capital will be merging with SoFi through the ticker IPOE. Over the past couple of days, the admins and I have compiled information evaluating the company. Down below are some of our key findings:

• With a base valuation of 8.65b(now 17b), we believe SoFi can still double from here. The vast industries that SoFi not only covers, but is a leader in shows the diverse portfolio of one of the biggest industries in the 21st century(Fintech)

• As Chamath stated, SoFi is a "one-stop-shop." SoFi is on the top tier of user-friendly tech along with Robinhood and Lemonade

• Sofi’s mission is to help people reach financial independence to realize their ambitions (Target consumers millennials and gen Z)

Although the fintech industry is a really crowded field, we believe with SoFi’s consumer-friendly platform and “one-stop-shop” business model they’ll be able to retain their customers and attract new consumers with this structure. Something that isn’t far fetched that can potentially happen as soon as tomorrow is ARK starting a position in IPOE. SoFi fits the mold of ARKF’s fund description and Catie Wood has invested in the 2 of the last 3 spacs Chamath has led which include Virgin Galactic and Opendoor. Overall, the short and long term seems fairly favorable for the stock price of IPOE (SoFi). If we do see ARK initiating a position in IPOE expect a 15-20% run-up similar to the other spacs they’ve invested in.

SBE- Chargepoint had just announced that their merger will take place on February 11th. Overall, the push for clean energy from the Biden Administration and the funding for clean energy in the stimulus package will continue pushing clean energy stocks higher. Technical Wise SBE is trading inside a price channel with the EMA 5 just crossing above the EMA 13. Only technical trade for this week.

Crypto Sector- Quite bullish still and believe the crypto sector will continue pushing higher with additional stimulus mostly likely happening after Biden comes into office. With the dollar weakening and the potential for inflation, cryptocurrency will continue to rise in value. Another reason why I believe crypto will continue to hit ATH is the demand to own crypto. Many people are FOMOing and want to own a “piece of the pie”. The law of supply and demand indicates that crypto will continue to rise in value if investors are willing to continue dumping money in despite the price. And since cryptocurrency has no intrinsic value it will continue rising if demand remains the same.

Top stocks for January 18th-22nd: IPOE and CLSK

IPOE- It’s back on the watchlist this week as we believe the market hasn’t priced in the full potential of SoFi. This trade for the admins and I are betting for short/long term gains and will take advantage of the pop in stock price closer to the merger. Another short term catalyst that I brought up last week was the potential of ARK invest starting a position in IPOE for their ARKF ETF. We believe “it’s not if but when” ARK will start investing in IPOE. With ARK’s influence in the stock market watch for some extreme short-term gains if you have a position in IPOE.

CLSK- On Thursday, CLSK got hit with a short report from Culper Research claiming Cleanspark has “fabricated key elements of its business, including purported customers and contracts” and is also “rife with undisclosed related party transactions.”(Culper Research). After skimming through the report, the more and more I look into their bearish reasoning it seems false and unjustifiable. Many of Cleanspark’s most recent contracts with the US Embassy, US Marines, and Walmart were not included in the report. Another argument that tried to make was the contract with the International Land Alliance, claiming that the project has not started yet or doesn’t exist. The evidence used to support this claim were two photos from a deserted field claiming that there are no Clean Spark microgrids to be seen. In my opinion, much of their information inside the short report was all bull s***. Looking at Culper Research’s past short reports, out of the 8 stocks they shorted all 8 were unsuccessful and continued trending up. Their most recent attack was on Blink Charging (BLNK) at $9. Look how that turned out… Overall, I’m still extremely bullish on CLSK and believe this will be a short term bump before trending back up. (Buying opportunity if we continue to see the share price drop below $30)

Top stocks for January 25th-29th: AUPH, TSLA, SGBX, CLSK

AUPH- Friday AH (after hours) Aurinia Pharmaceuticals received FDA approval on its leading drug, voclospoprin. Voclosporin is the only oral therapy that has the capability to treat Lupus Nephriti (LN) a deadly disease that occurs inside your kidneys. Not knowing what the price will be tomorrow at pre-market, resistance areas are at 22 and 36. If the price premarket is above the $22 level expect it to head straight to 36 (no resistance up until that price) when trading opens at 6:30 pst.

TSLA- Reports earnings on Wednesday with the rest of the high flying stocks (AAPL, FB, LRCX). I’m expecting a beat on earnings but am more curious about the outlook of 2021. These are the following topics I want to be brought up during the call and answered by Elon Musk and his team.

• Their progress on the 4680 battery cells

• Updates on the potential refresh of the Model S and Model X

• Updates on the Gigapress they just received in Fremont and Texas

• 2021 estimates for the number of cars delivered (Personally I’m expecting 750-800k)

Three projections for the stock price after their earnings call. 1. Tesla breaks ATHs once again. 2. Tesla trades sideways with the price fluctuating 1-2%. 3. Tesla sells off and hits 815 (lowest 775).

SGBX- Pure technical play. Looking for a continuation with the bullish engulfing from Friday’s trading. Looking for a break of 8.7 and continuing to 52-week highs of 9.75.

CLSK- Looks like we have found a bottom at the 26 levels. Looking for confirmation above 30 and hopefully regain momentum after the horrible short report that was published last week on CLSK.