I'm Buying Google as Chart, SpaceX Update Suggest Breakout Move Coming

The market is digesting the news of the continuation of the blockade of the Strait of Hormuz quite well and has come close to recouping most of Tuesday's losses early in the session on Wednesday, with around 68% of stocks in positive territory.

There are only around 150 stocks at new 12-month highs, which is a bit low for a market that has gone straight up to new highs. But it illustrates that there is still a lot of opportunity in stocks that aren't too extended.

President Trump indicated that he doesn't expect a response from Iran for a few days but, once again, investors are anticipating a favorable outcome. If we keep running up at this point, the danger of a sell-the-news reaction to a deal will be significant.

Managing Positions

My focus is on managing positions and to find a balance between keeping accounts close to highs but to stay aggressive with names that have strong momentum. It is going to be particularly interesting when the Magnificent Seven (MAGS) names start to hit.

Three Moves Worth Sharing

A good example of the sort of moves I'm making is that I sold half my position in Atomera (ATOM). I highlighted the name on Monday and it blasted close to 20% higher quickly. I will continue to hold on to half but locked in a gain on the other half. I'll be looking for additional entry points once the stock consolidates a bit.

A new name I started today is Nektar Therapeutics (NKTR) . The stock jumped close to 20% following news on Monday of positive 52-week data from its Phase 2b REZOLVE-AA study for rezpegaldesleukin in patients with severe alopecia areata.

Nektar is targeting a multi-billion-dollar opportunity as a top-tier "biologic" treatment for autoimmune skin conditions. The company priced a secondary offering Tuesday evening at $92. I started a longer term position and will be adding as the stock evolves.

Another name I'm watching is Alphabet (GOOGL) . I discussed the increase in my position recently and I am increasing it again as the chart develops. There is now the makings of a cup-with-handle pattern. When that is combined with the robust news flow from the company about new chips, growth of Gemini, and its position in SpaceX, I think it has a good shot at a breakout move. I'm upping my exposure to the name.

The Game Plan

That is an example of some of the moves I'm making right now. As I said, it is a balancing act of making sure that I protect some good gains but remain aggressive with stocks that still have positive price action. I'm growing a little more concerned about a potential pullback and will be ready if and when that happens.

At the time of publication, DePorre was long ATOM, NKTR and GOOGL.