Bulls and Bears Both Want a Pullback: How I’m Playing It With 19 Stocks

After the huge rally over the past two weeks, both bulls and bears are hoping for some pullbacks. Bears just want to escape the pain of being on the wrong side of the move, while bulls are hoping for better entry points so they can put more capital to work.

They are getting their wish as there finally is some selling on Thursday morning, but when will dip buyers start to show up?

The bearish view is that this entire rally was unjustified and that the market is ignoring significant economic issues that are sure to arise even after the Iran situation is normalized.

The bullish view is that a new major uptrend is starting, driven by a renewed embrace of the AI theme, positive economic ramifications of removing Iran as a threat to world peace, and an economy that is stronger than expected.

The price action suggests the bullish view is taking hold, but that doesn't relieve us of the need for vigilance, and a quick reaction should conditions shift.

Managing Existing Positions

My game plan right now is to manage existing positions. There are a number that I want to add on pullbacks or when the chart develops some better support. With many earnings reports coming up, there is a need for a strategy.

The Magnificent Seven

I am currently holding Alphabet (GOOGL) , Meta Platforms (META) , and Nvidia (NVDA) .

I wrote about increasing my Alphabet position on Tuesday morning. That worked out well, but there is slight weakness on Thursday morning after the run. I believe Google has a good chance of a positive earnings response and is likely to run up into the report.

Meta and Nvidia have somewhat similar technical setups and are extended as they look ahead to earnings. I don't have full positions so my inclination is to hold rather than reduce. I'll look for entries on deeper pullbacks.

AI Infrastructure Names

Amprius Technologies (AMPX) , LightPath Technologies (LPTH) , Syntec Optics Holdings (OPTX) , and Viavi Solutions (VIAV) are suppliers for various data center components benefiting from AI infrastructure spending. They have made parabolic moves and are pulling back slightly. I think all of them have good potential for more upside and I'm watching for entries.

Individual Names

Alto Neuroscience (ANRO) had a beautiful breakout and is now consolidating. I reduced slightly and am looking for remounts.

Cullinan Therapeutics (CGEM) is a biotechnology name with a great setup and big price targets. There is some data likely coming soon which will cause a move. A dip would likely be an opportunity.

ClearPoint Neuro Corp. (CLPT) has been acting a bit better on potential changes at the FDA. I'm holding it but not doing anything for now.

Core Scientific (CORZ) and TeraWulf (WULF) are data center plays. Both have had good runs and I have reduced into the strength. I want to see them come down and find some new support before I remount.

Delcath Systems (DCTH) has had a great run. This is an under-the-radar cancer play and I think it is starting to get more attention. I'm holding my core position and will add on pullbacks near the 200-day moving average.

GigaCloud Technology (GCT) has a high level base and is showing signs of a breakout.

Hims & Hers Health (HIMS) languished for a while but finally turned up nicely on peptide news. This will be an interesting one on earnings as it adjusts to the shift in the GLP-1 market.

Harrow, Inc. ( (HROW) ) fell hard due to overly promotional management that failed to live up to its lofty promises. The company is still seeing tremendous growth, though and the stock has bounced back to resistance. I think management is changing its approach and will now start to under-promise and over-deliver. I'm a buyer on pullback to fill the gaps on the chart.

Roku (ROKU) has had a great run during the rally and is likely to react to Netflix (NFLX) earnings out Thursday night. This one still has plenty of potential upside but it's a tough chase at this point. I'm watching for some consolidation.

TG Therapeutics (TGTX) has a great chart and I added to it today. It has completed enrollment in a study of its key drug for people with relapsing forms of multiple sclerosis.

Xeris Biopharma (XERS) is holding steady but lackluster as it waits for its next earnings report. News of the first dosing for its Levo drug will likely be a major catalyst and could occur in the next few months.

This is turning into a stock picker's market and that is my focus.

At the time of publication, Rev Shark was long GOOGL, META, NVDA, AMPX, LPTH, OPTX, VIAV, ANRO, CGEM, CLPT, CORZ, WULF, DCTH, GCT, HIMS, HROW, ROKU, TGTX and XERS.