Back on Sep 16, Mike Paulenoff told MPTrader members that Sonos (SONO), the under-the-radar, work-at-home speaker company, had triggered initial buy signals.
Mike explained that the stock, which was trading at 14.35/36 at the time, had climbed above its up-turning 10 and 17 DMAs, in route to a challenge of the "flattish" 50 DMA, now at 14.75.
He wrote: "The recent low at 12.40 on 9/04 represents an exact 50% retracement of the major upleg from the March low at 6.58 to the July high at 17.83, and as such, the sharp upturn from 12.40 to 14.36 during the past week or so, is a technical signal that a correction within an otherwise bull phase is complete."
SONO went on to reach a high of 16.10 this past week, up 12% from Mike's Sep 16 alert, and on Wednesday Sep 30, Mike wrote:
"SONO has popped above its flattening 50 DMA (14.56) today, extending the rally off of the 9/04 corrective low at 12.40. The longer SONO remains above 14.56, the more likely it accelerates towards 17.00 next, in route to a full-fledged test of the 7/23 high at 17.83."
See the SONO chart below.
From a macro perspective, with Covid again rearing its ugly head in a very public way, directly impacting the Trump Administration, SONO could also benefit from another round of stay-at-home spending and "Covid stocks" generally attract another wave of investor interest.
Join Mike and his MPTrader community as they monitor SONO in the days and weeks ahead.
This past Monday September 19, Mike Paulenoff alerted MPTrader members to an emerging setup in Raytheon Technologies (RTX), noting:
One of the recurring themes I read about that threads through coverage of the Russian-Ukraine conflict is that the vast amount of materiel sent to Ukraine from NATO countries to help Zelensky and his army fight Russia is older equipment and weaponry that sooner than later will have to be replaced by the donating countries.
On the afternoon of September 12, the day before the consequential August CPI report was released, Mike Paulenoff alerted MPTrader members to a key inflection point in the QQQ, writing:
The QQQ is strong ... heading towards a confrontation with its key resistance zone from 312.80 to 316.15 where my work expects QQQ behavior to inform us about the true underlying dominant trend-- to the upside in an extension of the June-August advance, or to the downside in extension and completion of the Aug-Sep.
On August 8, Mike Paulenoff was asked for chart analysis on CHPT by an MPTrader member.
Before the opening bell, Mike responded with the following chart-based commentary:
CHPT (ChargePoint Holdings)is getting a lift from the so-calledInflation Reduction Actmostly because of the feel-good reaction to the $7,500 electric vehicle tax credit (if you can afford to buy an EV in the first place) as well as earmarked funds supposedly heading for building out charging station infrastructure.
On Friday morning August 26, Jay Powell delivered a very brief, but considerably more hawkish-than-expected Jackson Hole speech that for all intents and purposes ended and reversed the 19% recovery rally advance in the SP.
That afternoon, with AAPL down 3% to 164.65, Mike Paulenoff posted a heads-up alert about AAPL to MPTrader members that called for continued downside in the most widely-followed name in the averages, writing:
AAPL has pressed beneath its prior pullback low at 166.
Mike Paulenoff called this past weeks sell-off in AAPL ... and the market in general.
On Thursday Aug 18, with AAPL at 173.84, Mike told his MPTrader members: I am in the camp expecting the latter downside scenario, notwithstanding The Streets newfound love affair with the company.
The next day, he wrote: AAPL is pressing on key initial support at 171.60/90, which if violated will point to 168-166 next [and] put downward pressure on SPX, SPY, ES.
He updated his downside target to 164.80-162.