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Sunday, September 13, 2020
{ Watchlist } 3 Setups Wall Street Would Pay to See
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Banks and hedge funds on Wall Street have the deepest pockets you'll see anywhere in the world.
They already have unlimited resources at their disposal— in-house teams of analysts, state-of-the-art technology, mind blowingly expensive algorithms...
10x Genomics is a life science technology company, which develops and sells instruments, consumables, and software for analyzing biological systems globally
Shares reached new all-time highs above $122 on Friday 9/11/2020, gaining over 8% on the day
Announced an upsizing public offering of 4 million shares at $110, which indicates strong institutional demand. At the current levels, the institutional ownership is 85%
TXG has shown incredible relative strength during the overall market weakness
Technically, TXG has been in a very clear uptrend since March lows. Currently, the momentum to the upside is accelerating, creating a potential for an explosive move higher
The stock looks amazing to ride long on dips and breakout areas
DKNG: DraftKings, Inc.
Shares are on the move again, gaining ~20% over the past 5 sessions
At current levels, DKNG, being one of the hottest stocks of the pandemic, is less than 2 points and ~4% away from all-time highs
Sizeable 8% short interest — one of the key things I love about potential breakout momentum plays
Virtually no reaction in stock despite the overall equity selloff
There are multiple positive catalysts for the company to look forward to. As sports are coming back to life, we will see all Major Leagues get the attention of action-hungry fans
DKNG is a sympathy play to PENN, another recent high flyer that just recently broke all-time highs which points to the strength of the sector
Sell-side seems to agree with the bulls: Evercore recently upgraded its price target to $60, citing easing regulatory environment
The chart is offering a great risk-reward setup: if bulls are able to close this one above $45, I believe the stock could go as high as $65 in the next few months
FRTA: Forterra Inc.
Stock has been a spectacular performer during the pandemic— up over 400% from March lows
Demonstrated superb relative strength with no reaction to the recent market downturn
Maintains "squeezable" 12% short interest
At the end of July, stock blew the earnings numbers out of the gate, exceeding the expectations by 400%
On Thursday, the 10th of September, the company announced a partial favorable decision in its arbitration proceeding— clearing the way for part of a 2015 earnout dispute, potentially worth up to $100 million
Stock is having a second go at breaking out of all-time high 15 area— third time's the charm, but could it come second?
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