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November 22, 2024

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In Stocks

AppLovin’s 1,303% Rise: The Hidden Power of the SCTR Report

5 Mins Read

How do you find the next big stock before it gains the investing public’s attention?

It’s tricky, but there are only two ways to spot a so-called “hot stock” before the social buzz. One is to scour financial reports and forum chatter to see what Wall Street insiders might be looking at before the general public catches. Another is to use various scans to trace the smart money’s tracks before the news gets out.

Alternatively, you could do both.

(As far as the latter—scanning for stocks exhibiting technical strength—perhaps it’s something you should be doing daily, as you have plenty of tools to scan every sector and stock on the market rapidly.)

Tuesday’s Scan After the Close

On Tuesday, I did an after-market scan to prepare for the following day’s trading session. Pulling up the StockCharts Sample Scan Library from the Charts & Tools menu, I ran a scan for New 52-week Highs and categorized the Symbols by the StockChartsTechnicalRank (SCTR) score.

FIGURE 1. NEW 52-WEEK HIGHS SCAN RESULTS. AppLovin is at the top when sorted by SCTR scores.Image source: StockCharts.com. For educational purposes.

The mobile marketing tech company AppLovin (APP) had the highest SCTR score and a new 52-week high. I realized that APP was also on the SCTR Top 10 report, which is visible on the SCTR Reports Dashboard panel.

FIGURE 2. SCTR REPORT TOP 10 LIST. APP been on this list for a while but its move to the top position is worth noting.Image source: StockCharts.com. For educational purposes.

If you’ve been following the SCTR Reports from time to time, you might have noticed that APP has been occupying the top 10 list for quite some time. APP, though not the most popular stock (perhaps until now), has been abuzz among institutional and tech investors for quite some time. It makes you wonder what other scans APP might have shown up on.

In the Symbol Summary tool, here’s what came up Tuesday afternoon.

FIGURE 3. LIST OF SCANS ON SYMBOL SUMMARY THAT INCLUDED APP. It’s time to do a deeper dive.Image source: StockCharts.com. For educational purposes.

At the least, APP’s appearance on several scans tells you it’s time to do a deeper top-down dive on the stock. Let’s start with a weekly chart to get a big-picture view of APP’s price history.

FIGURE 4. WEEKLY CHART OF APP. The stock price had a parabolic upside move.Chart source: StockCharts.com. For educational purposes.

That’s a jaw-dropping 1,303% jump (see percent line measurement in the chart). And it begs two questions: Were there early signs to get into the stock when APP was just at $30, and is it now just a FOMO trade, or is there still room for growth?

Starting with the first question, the earliest technical indication was in May 2023 (see blue dotted vertical line) when two things coincided (green circles highlight each event):

  • The Chaikin Money Flow (CMF) broke through the zero line, indicating that buyers controlled the market.
  • The SCTR line shot up to around 99, well above the bullish 90 line.

At this point, you’re probably wondering if there’s still room for APP valuations to grow or if it’s now just a FOMO trade. Here, we’ll shift to a daily chart of APP to take a closer look.

FIGURE 5. DAILY CHART OF APP. There are multiple levels of support for the looming pullback.Chart source: StockCharts.com. For educational purposes.

APP’s runaway gap followed a stellar earnings report. The divergence between the CMF and the On Balance Volume (OBV) lines shows a potential decrease in institutional buying (represented by the CMF) versus retail FOMO (using OBV as a proxy). The Relative Strength Index (RSI) is clearly in overbought territory, but APP’s price action also shows how the RSI can sustain extreme levels for an extended period of time.

In the daily chart, three indicators show potential convergence at support levels. The Ichimoku Cloud provides a dynamic support range that shifts with price action, aligning with the quadrant lines, especially the third quadrant just below the 50% retracement. Keep in mind that the second and third quadrants typically signal bullish levels during a pullback. Lastly, notice the Bollinger Bands, where the middle band also falls within the third quadrant.

If APP starts pulling back, as it seems likely, and you’re bullish on the stock, watch these levels closely. How the price reacts at these points can guide you in making a more informed decision about when to take action.

At the Close

The steps to spotting a potential breakout stock like AppLovin highlight the importance of analysis using differentiated tools to uncover hidden opportunities. From initial scans to spot technical strength to deep dives using SCTR rankings and Symbol Summary insights, the journey of discovery relies on methodical steps. Whether you’re looking to catch the next big move or planning entry points during a pullback, the takeaway is clear: consistent, multi-layered scanning and analysis is the key to finding market gems early on.

Disclaimer: This blog is for educational purposes only and should not be construed as financial advice. The ideas and strategies should never be used without first assessing your own personal and financial situation, or without consulting a financial professional.

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In World news

At least 42 killed as gunmen open fire on vehicles carrying Shiites in northwest Pakistan

3 Mins Read

Gunmen opened fire on vehicles carrying Shiite Muslims in Pakistan’s restive northwest on Thursday, killing at least 42 people, including six women, and wounding 20 others in one of the region’s deadliest such attacks in recent years, police said.

The attack happened in Kurram, a district in Khyber Pakhtunkhwa province where sectarian clashes between majority Sunni Muslims and minority Shiites have killed dozens of people in recent months.

No one immediately claimed responsibility for the latest attack. It came a week after authorities reopened a key highway in the region that had been closed for weeks following deadly clashes.

Local police official Azmat Ali said several vehicles were traveling in a convoy from the city of Parachinar to Peshawar, the capital of Khyber Pakhtunkhwa, when gunmen opened fire. He said at least 10 passengers were in critical condition at a hospital.

Aftab Alam, a provincial minister, said 42 people were killed in the attack, and that officers were investigating to determine who was behind it.

Interior Minister Mohsin Naqvi called the shootings a “terrorist attack.” Prime Minister Shehbaz Sharif and President Asif Ali Zardari condemned the attack, and Sharif said those behind the killing of innocent civilians will not go unpunished.

Kurram resident Mir Hussain, 35, said he saw four gunmen emerge from a vehicle and open fire on buses and cars.

“I think other people were also firing at the convoy of vehicles from nearby open farm field,” he said. “The firing continued for about 40 minutes.” He said he hid until the attackers fled.

“I heard cries of women, and people were shouting for the help,” he said.

Ibne Ali Bangash, a relative of one of the victims, described the convoy attack as the saddest day in Kurram’s history.

“More than 40 people from our community have been martyred,” he said. “It’s a shameful matter for the government.”

Baqir Haideri, a local Shiite leader, denounced the assault and said the death toll was likely to rise. He accused local authorities of not providing adequate security for the convoy of more than 100 vehicles despite fears of possible attacks by militants who had recently threatened to target Shiites in Kurram.

Shop owners in Parachinar announced a strike on Friday to protest the attack.

Shiite Muslims make up about 15% of the 240 million population of Sunni-majority Pakistan, which has a history of sectarian animosity between the communities.

Although the two groups generally live together peacefully, tensions have existed for decades in some areas, especially in parts of Kurram, where Shiites are the majority.

Dozens of people from both sides have been killed since July when a land dispute erupted in Kurram that later turned into general sectarian violence.

Pakistan is tackling violence in the northwest and southwest, where militants and separatists often target police, troops and civilians. Violence in the northwest has been blamed on the Pakistani Taliban, a militant group that is separate from Afghanistan’s Taliban but linked to them. Violence in southwestern Balochistan province has been blamed on members of the outlawed Baloch Liberation Army.

This post appeared first on cnn.com

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In Business

Target stock falls 21% as big discounting effort falls short

2 Mins Read

Target reported earnings Wednesday that came in far below Wall Street’s expectations, something the big-box retailer attributed to slower than expected demand.

The company announced profits that fell short of forecasts by 20%, its widest miss in two years. Revenues, meanwhile, came in under expectations for the first time in more than a year.

Target’s stock, as a result, fell more than 21% Wednesday.

The discouraging results came despite a heavily touted campaign to discount thousands of items, as well as a pushed-up holiday sale.

On a call with reporters, Target CEO Brian Cornell blamed the dismal quarter on “lingering softness in discretionary categories,” as well as costs associated with preparing for the short-lived port strike in October.

Target Chief Operating Officer Michael Fiddelke added that it was “disappointing that a deceleration in discretionary demand combined with some cost pressures have caused us to take our guidance back down after raising it last quarter.”

The company lowered its profit and sales goals for the year, though Fiddelke said Target feels confident in its long-term outlook.

Broader stock trading did not immediately react, however, as Wall Street awaits earnings from chipmaker Nvidia, which has helped power the market higher throughout the year. Yet, combined with other indicators like slower holiday hiring, it could be a signal that sales for the all-important final calendar quarter could be softer than hoped.

Target’s report comes a day after rival Walmart reported earnings and revenues that beat expectations.

Yet, even Walmart noted that customers were still holding back in many cases for compelling deals, especially as the cost of food has risen.

“We’re expecting this holiday period to be very consistent with that,” Walmart Chief Financial Officer John David Rainey told CNBC. “They’re focused on price and value.”


This post appeared first on NBC NEWS

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