Thursday, October 21 2021

The heat has been scorching in much of the United States. And in a show of independent sympathy, the shares of the nation’s largest corporations have turned out just as hot on Wall Street. Additionally, based on today’s shortest stock price charts, size can also matter a lot when it comes to buying tomorrow’s top winners. Let me explain.

What a difference a handful of trading days can make. Maybe not for some of the more notorious stocks on the market. High short interest, large caps GameStop (NYSE:GME) and AMC (NYSE:AMC) both end the period with losses. But elsewhere? Certainly.

A week ago, Wall Street took off with substantial declines and blameworthy fingers pointed at hawkish testimony from Jay Powell and Federal Reserve regulators. The venerable blue chips Dow jones lost 3.38% in five days. An equally slippery performance was achieved by large caps, broad base S&P 500.

Today however, and looking at the main clues built on Apples (NASDAQ:AAPL) large or that of Microsoft (NASDAQ:MSFT) have a two trillion dollar breakthrough, investors wouldn’t be wrong to ask, what was the problem? Apparently it wasn’t. At least not after a big real, real deal has come into the picture.

After months of negotiations, the Biden administration’s infrastructure deal saw a significant breakthrough this week. There is an agreement in principle worth $ 973 billion over five years. Today and just a week later, strong rallies in large cap stocks allowed the Dow and S&P 500 to recoup all of the losses from the previous period before Friday’s close.

  • Advanced micro-systems (NASDAQ:AMD)
  • Limited sea (NYSE:SE)
  • You’re here (NASDAQ:TSLA)

So what does the location of these large caps have to do with the shortest stocks in the market? AMC and GME are down and it’s the large caps that interest us, right? Not entirely. It also depends on how and where we look at these names. And today we are interested in following the very big, very shorted money in the most shorted stocks in the market based on dollar value and whose price charts are ready to buy!

Shortest stocks to buy: Advanced Micro Devices (AMD)


Source: Charts by TradingView

The first of our top-selling and top-selling dollar stocks to buy are Advanced Micro Devices stocks. AMD stock has around $ 6.80 billion in shares sold short. The amount is higher than most of the mid-cap companies listed on the stock exchange despite the chip giant’s astonishing turnaround in recent years.

Today, and if the AMD stock price chart is any indicator, these bears are going to wake up abruptly.

Technically, the monthly view reveals a confirmed bullish hammer low. With the candlestick also spoiling a cleavage break in a bearish head and shoulder pattern and sporting a well-positioned stochastic, this shorter action has the ammo to hit historic highs with this pattern-breaking entry.

A preferred way to protect and serve the trading accounts of investors in this shorter stock is to buy December’s bullish $ 90 / $ 105 buy spread instead of AMD stocks.

Sea Limited (SE)

Sea Limited (SE) double-bottom corrector with high handle in progress
Source: Charts by TradingView

Sea Limited is the next highest and shortest dollar share purchase to buy. Unlike AMD, investors may not have heard of SE shares. But the Singapore-based ecommerce game has been on the radar of growth traders due to things like year-over-year sales growth of nearly 150%.

Thanks to SE’s commercial success, stocks have swelled by around 700% in the year since the March Covid-19 low of 2020. Today, Sea Limited maintains a fairly substantial valuation of around 150 billion. of dollars. But the gains do not appear to be over. And that’s bad news for the roughly $ 5 billion in equity bets against SE.

Technically, this most bypassed stock has created a classic and confirmed corrective basis for double bottom or W from its 38% Fibonacci level linked to Covid. With the initial buy decision from the Middle Pivot and the stocks now trading in a high grip pattern, SE stock is a buy right now.

Here I would go for a bullish buy spread of $ 300 / $ 320 in September given the size of the setup and the upside potential without fear of getting ahead of ourselves.

Shortest stocks to buy: Tesla (TSLA)

Tesla (TSLA) double bottom with possible confirmation of nearby pivot
Source: Charts by TradingView

The last of our shortest dollar inventory to buy is this type of shorts mothership. It’s Tesla. The EV giant has been at the top of this short-interest coin list for over a few years. And like their predecessors, today’s bets of $ 25 billion against Tesla should be worrisome.

Technically and similar to SE, TSLA stock takes the form of a high level bullish double bottom. Stocks have yet to confirm the base’s second low pivot, let alone the classic mid-pivot buying decision of the model. But I like what I see.

With the June monthly indoor candlestick capable of ending next week and stochastics on the verge of signaling a bullish cross, TSLA looks compelling. Additionally, if the stocks confirm the pivot low, investors will have the opportunity to buy one of the most important growth stocks on the market at a technically advantageous discount.

To better prepare for an electrifying rally with less hassle of being a crash test dummy in the event that this most bypassed stock takes a U-turn, I would suggest the December $ 750 / $ 900 as a well placed vehicle capable of withstanding. everything counts.

As of the publication date, Chris Tyler holds (directly or indirectly) positions in Advanced Micro Devices (AMD) and its derivatives. The opinions expressed in this article are those of the author, subject to the publication guidelines of InvestorPlace.com.

Chris Tyler is a former ground-based derivatives market maker on the US and Pacific stock exchanges. For additional market information and related thoughts, follow Chris on Twitter. @Options_CAT and StockTwits.



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