EB Daily Market Report - Friday, November 17, 2023
Fall Special
We are within DAYS of our Fall Special, which is our biggest sale of the year. If you like the market guidance, education, and research that we provide our members, next week will begin THE BEST TIME OF THE YEAR to extend your membership with us. Your savings will escalate and your monthly cost will never be better.
Extending your membership also locks in current rates. We have no plans at this time to increase our monthly and annual subscription fees, but extending now will eliminate that potential worry.
Get ready for our best deal of the year!
Holiday Schedule
We will be operating on a modified Thanksgiving holiday schedule next week. Here are the changes for the upcoming week:
- Trading Places LIVE shows: Cancelled Wednesday, November 22 and Thursday, November 23
- Live Trading Room: Cancelled Wednesday, November 22
- Daily Market Report: No DMR on Thursday, November 23 and Friday, November 24 (a brief report will be issued on Friday morning, if warranted - stock market will close at 1pm ET, 3 hours early)
Portfolio Draft
We will have our Portfolio DRAFT, announcing the stocks that will comprise our 3 portfolios - Model, Aggressive, and Income - on Monday, November 20th at 5:30pm ET. We will then "purchase" (for our tracking purposes) all of these stocks at the opening price on Tuesday, November 21st. This is how we will account for our performance.
It is NOT a recommendation for anyone to buy ANY of these stocks. We are not Registered Investment Advisors (RIAs) and, as such, we are not licensed to provide advice/recommendations. We announce these portfolios and track them for educational purposes only. Please consult your own financial advisor before purchasing ANY of the stocks mentioned on Monday. Members may approach these portfolios in whatever manner works best for you. Some stocks will be overbought, so you might consider waiting for pullbacks. Some may simply consider trading these stocks, rather than buying and holding for the entire 90-day period. We add portfolio stocks based on their own individual merit and based on themes that we'll discuss at Monday's event.
Market Update
There's not really much to add to what I've been discussing in recent days and weeks. We've seen key breakouts on our major indices and now they appear to be trending higher. Given the bullish seasonality, the current bullish and improving technical conditions, and most of my sustainability ratios, I see stock prices rising into year end. I think I've been very consistent and convinced about this all year.
The 10-year treasury yield ($TNX) is cooperating as it drops again today. Today's early low touched 4.40%, clearing yield support in the 4.43%-4.44% range from Tuesday and Thursday. The Volatility Index ($VIX) moved below 13.70 for the first time in roughly 7 weeks. MAJOR VIX support resides near the 12.70 level. Another push to a new low would be excellent news for the bulls and a perfect environment for a bull market to flourish.
I want to point out one stock on our Short Squeeze ChartList (SSCL) that really looks interesting right now. PLEASE keep in mind that trading these stocks can be extremely risky, with quick losses very possible. But they also provide a potential opportunity for a MAJOR push to the upside in a relatively short time frame.
TG Therapeutics (TGTX) has a short % of float of 27.01% and recently reported the following stunning quarterly numbers:
- Revenues: $165.8 million (actual) vs. $93.1 million (estimate)
- EPS: $.73 (actual) vs. $.29 (estimate)
These numbers were reported by zacks.com.
TGTX immediately gapped higher on MASSIVE volume on November 1st. The candle body high from early August is 11.88. A close above that is meaningful, but I'd want to see volume accelerate. Today, volume is just moderate after reaching a high of 12.09 earlier. I bought a small position in TGTX at 11.99 earlier today. I will add on strength later today or next week, but I want to see volume accelerate as well. To gauge volume, I'd use maybe a 30-day, 15-minute chart. The volume bars should jump and be quite noticeable:
On Wednesday, TGTX had an unsuccessful attempt at a breakout at this level. I suspect short sellers will defend this level as best they can. You can see that if TGTX can breakout, anyone shorting since the first of August will be underwater and will be forced to make a critical decision. If enough of them begin buying to cover and cut losses, we could see a melt up with no obvious price resistance until nearly 20 bucks. Again, I want to stress this type of trade should ONLY be considered by VERY AGGRESSIVE traders.
This will be interesting to watch as the chart develops. A closing stop beneath 11.88 isn't a bad idea to avoid a big loss.
Happy trading!
Tom