As Tesla, Mag 7 Stocks Run Wild, I've Got My Eyes on This China Play
Here's a name that's pulling back but could claw ahead as technical conditions shift.
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Breadth is running slightly positive on Monday morning, but strength in the Magnificent Seven MAGS and the data center and AI sectors are helping drive the indexes higher.
The Fed interest rate decision isn't until Wednesday afternoon, so there is still plenty of time for investors to position for that move. At this point, there is more concern about not being long enough rather than being caught by a sell-the-news reversal.
Tesla TSLA is crushing shorts and driving the Magnificent Seven higher, following news of a $1 billion insider buy by Elon Musk. This was not anticipated, and trapped shorts that were trying to fade last week's big move in the stock.
Pockets of momentum are narrower today, with most of the "hot" money focused on data centers after Nvidia NVDA announced a large deal with CoreWeave CRWV for excess capacity.
I continue to look for some new buys, but while the overall market action is good, few great technical setups that I want to pursue right now exist.
One name that caught my attention is UP Fintech Holding Ltd (TIGR), which is pulling back to key support levels after strong earnings.
TIGR is a leading online brokerage firm that primarily provides brokerage and financial services to Chinese investors. The company operates a proprietary platform called Tiger Trade (also known as Tiger Brokers), which allows trading of equities, options, warrants, futures contracts, and other financial instruments across multiple global markets. It conducts business in the United States, Hong Kong, Singapore, New Zealand, and the Cayman Islands. Users can access the platform via mobile apps, websites, and desktop terminals.
TIGR was founded in 2014 and is headquartered in Singapore, and employs between 500 and 1,000 people. TIGR generates the majority of its revenue from primarily mainland China, Hong Kong, and Taiwan. In the first quarter of this year, approximately 60% of its net asset inflows ($3.2 billion) came from Greater China, reflecting its dominance as the primary market. Other regions like Singapore and Southeast Asia (30%) and the U.S., Australia and New Zealand (10%) contribute significantly less.
In its most recent quarter, TIGR saw revenue jump 59% to $138.7 million from $87.4 million. It generated earnings per share of $0.24 vs. $0.03 in the same quarter in the prior year. It is estimated that earnings per share will increase 77% in 2025 to $0.75 and another 9% in 2026. It is currently trading with a trailing price-to-earnings ratio of 15.
Technically, the stock has pulled back to support near its 50-day simple moving average after jumping on better-than-expected second-quarter earnings.
I have established a position around the $11.30 area and will look to aggressively trade it as technical conditions develop. I view the 50-day simple moving average around $10.83 as key support.
I continue to look for new buys, but the action is cooling off a bit as I write.
At the time of publication, DePorre was long NVDA, CRWV, TIGR.
