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DigitalOcean ($DOCN) | Cloud Computing Powerhouse - AWS for SMBsNYSE:DOCN DigitalOcean remains the only pure cloud computing company for small-to-medium-sized businesses (SMBs), offering a robust solution similar to AWS, but with a specific focus on cost-effectiveness and ease of use for smaller enterprises. The introduction of GPU droplets further strengthens its position in the market, catering to the growing need for AI and machine learning workloads. Despite struggles with corporate governance, the company’s technology is top-tier, making NYSE:DOCN an attractive acquisition target for larger tech players. The stock has doubled in volume recently, indicating bullish momentum is building, and we believe this sets up for a breakout. This is a long-term hold for those looking for high growth in the cloud sector. GPU droplets could accelerate this growth, positioning DigitalOcean as a critical player in a market poised for massive expansion. It is not too late to enter as we are just beginning to breakout. Should macro-driven events pull down the market, especially SMBs, we will be adding at key levels. Our entries: $24.50, $31.50, $35, Breakout over $39 Targets: $50, $70, $80 DigitalOcean is not just a small player in the cloud space; it has a specific niche that positions it for explosive growth. As SMBs increasingly adopt cloud technologies, and with GPU droplets creating a new revenue stream, DigitalOcean is set to rise. While near-term volatility exists, the long-term growth story remains intact. Investors should look at this as a multi-year play, with opportunities to accumulate during any market weakness.
NYSE:DOCN
by PennyBois
$JMIA | First on the Scene, Aiming for 5x-10x BaggerNYSE:JMIA Jumia, often referred to as the "Amazon of Africa," presents a unique opportunity for long-term investors to tap into the rapidly expanding e-commerce landscape in Africa. Our analyst, Shay Boloor, was one of the first analysts to recognize its potential, and while the company has faced challenges, the long-term thesis remains intact. We have been scaling into position between $3.50 and $4.50 as well as adding Jan 2026 $5 Calls. Trading under $5, this is a steal for investors willing to endure the volatility that comes with small caps in an emerging market. For those with patience, the reward could be substantial, with the potential for a 5-10x return over the next five years. Key Strengths and the Opportunity: Capital Strength: Jumia has raised $200 million in capital, significantly reducing solvency risk, which now stands at near zero. This financial cushion provides the company with the flexibility needed to continue its strategic growth. Long-Term Play: The stock might take time to reflect its true value as the narrative shift, much like we saw with companies like Snowflake and Unity Software, unfolds. Jumia's expansion will need time, but the thesis remains unchanged. Small Position Allocation: Due to the inherent volatility of small caps, Jumia is a small position. However, it offers massive upside potential for those who can ride out the short-term fluctuations. Market Context and Timing: We are currently in a phase of seasonal market weakness, where investors shift focus toward large-cap, defensive stocks. This shift makes small caps like Jumia more volatile and higher-risk in the near term. However, for the long-term investor, this is the moment to accumulate a position while others stay on the sidelines. Range to Watch: $5.40 to $14: This initial range represents the next key resistance levels as Jumia works its way up. $14 to $21: Liquidity zone where price can move quickly. Above $21: Should the stock break above this level, expect significant movement with liquidity zones extending to $27, $33, and potentially $40+. This stock has remained a high-conviction play. Although Jumia remains a volatile stock, it is well-positioned to capture long-term growth in the African market, making it an excellent buy-and-hold for patient investors looking to capitalize on the next big e-commerce wave. This is a prime opportunity to snag the bottom for the next run-up.
NYSE:JMIA
by PennyBois
US2000 Selloff | Small Caps Looking FrailLot's going on in this picture, my apologies for all the noise. Consistent with the overall market and recently published indexes, I am looking for more downside in US Domestic small-cap stocks. If you thought or if you were influenced that this inflation bubble economy would persist forever, I advise you consider a different source of information. "Do your own research" does NOT mean, go find something that agrees with your preferences. Rather, #DYOR as the kids say, is an opportunity for individuals and teams alike to look deep within themselves and ask if they have what it takes to achieve: honesty, humility, and truth.
OANDA:US2000USDShort
by ChiefMacro
Russell may rock n’ roll on rate cut and soft landing hopesRussell 2000 futures sit on uptrend support, making Friday’s close important following Jerome Powell’s speech at Jackson Hole. To get excited about US small caps, you need a soft economic landing and lower borrowing costs given many of its constituents are unprofitable and reliant on capital markets. Given Powell will discuss rate cuts and flag confidence in the Fed’s ability to stick a soft landing, it comes across as recipe for upside. With the uptrend nearby, traders could initiate longs around these levels or even a touch lower with a stop loss below the level for protection. Should the price break 2186.4, there’s little in the way of visible resistance until the record highs. If the trade works in your favour, consider raising you stop to entry level or higher, providing a free hit on upside. Good luck! DS
CME_MINI:RTY1!Long
by FOREXcom
Was that it for $IWM? Do we correct before the real run?While I do think that IWM is the place to be over QQQ , I think this run has gotten a little ahead of itself. I noticed something interesting today on the chart, if you look at it on the 6hr or 4hr, you'll noticed we tried to break above resistance on the 9am candle, and rejected hard back below it. This leads me to believe that the next move from here is actually down, not up. If we zoom out, the chart looks extremely similar to how it did before the covid crash. We formed a high, went down and v bottomed up into what looked like a breakout (Feb 2020), but instead formed a double top and then rolled over hard. Now we've pretty much made the same move, we formed a high in 2021, corrected, v bottomed in Oct 2023 and now we're at the exact level where a double top could take place from the high that was formed in Jan 2022 before price broke down. So will we have another covid style crash that brings price back to $150 or lower? TBD, but I have that feeling...
AMEX:IWMShort
by benjihyam
1
Small Caps Dead?AVUV from Avantis has outperformed the S&P since its opening in 2020. It recently dipped below the S&P for a brief moment before skyrocketing back above it. AVUV is not strictly a small cap fund because screens for value, profitability and momentum exposure. The recent surge in small caps has shown that diversified exposure to equities factors not present in the S&P 500 can be beneficial for those investing with long time horizons. Choosing funds with higher expected returns like AVUV might be difficult when the Mag 7 is driving the market, but you'll be very happy with your portfolio at times like this.
AMEX:AVUVLong
by Mere_Cat
1
Navigating Frothy US Equities with S&P SpreadsNavigating frothiness in US equities requires both caution and tact. With the S&P 500 nearing its all-time high amid flashing recession signals, investors must be vigilant with volatility during upcoming earnings season, driven by outsized expectations. This paper explores the persistent recession indicators and forces at play during upcoming earnings. The paper posits a spread trade using CME’s Micro E-Mini futures (Long S&P 500 and Short Russell 2000) to maintain upside potential with reduced downside risk. RECESSION RISKS PERSIST AS RATES REMAIN HIGH On Friday, the PCE Price Index (Fed’s preferred gauge) showed inflation cooling to 2.6% in May, in line with expectations. Price pressures are slowly abating. Numbers aside, the broader economic landscape presents a complex picture. Signals from the job market point to unemployment claimants at a record high for the past two and a half year with job openings shrinking drastically. Personal earnings were higher than anticipated in May (0.5% vs 0.4%), but spending was below expectations. Consumers are being more cautious. Mint Finance covered these nuances in a previous paper . Housing is flashing weakness as new housing starts hit a four-year low in May. Soaring prices and steep mortgage rates are weighing on demand. The Fed’s policy path remains unconfirmed. However, consensus point to a rate cut as early as September. Even if that happens, rates are expected to decline gradually. Source: CME FedWatch Despite risk of recession, the S&P 500 has had an exemplary showing this year, trading near their all-time high. YTD performance of 15% in 2024 has been far higher than the 74-year average of 4%. Yet, the performance has been increasingly top-heavy. Nvidia, Apple, and the rest of the tech titans have contributed much of the gains in the broad S&P500 index as it is market cap weighted. The index is heavily reliant on and sensitive to the performance of these mega-caps. The equal-weighted S&P 500 index is up only by 4% in sharp contrast. The spread between the S&P 500 and its equal-weighted counterpart is near its highest point since 2008. The spreads between the S&P 500 and both the Russell 2000 and S&P Midcap indexes have reached multi-decade highs. Outperformance was re-affirmed after the recent earnings season. Mega-caps crushed EPS and revenue expectations and reported phenomenal guidance while other stocks, especially utility and energy sector reported revenue and EPS figures below estimates according to FactSet report . Rallies in mega-cap stocks are being driven by idiosyncratic tailwinds, such as advancements in AI. Meanwhile, slowing consumer spending in the US is raising concerns for the broader market. RISK OF SHARP CORRECTION WARRANTS SPREAD POSITION According to FactSet , Q1 earnings season was positive. Only 19% of firms reported earnings below expectations. Actual average EPS YoY growth for the index was 5.9% (above 3.4% expected as of March 31). Frothiness in the equity market is palpable. Consistent outperformance by mega caps is baked into investor expectations. Strong earnings are already factored into prices, as evidenced by the S&P 500's P/E ratio of 28.38x (far higher than the 10-year average of 20x translating to a 42% above average earnings expectations). Average P/E ratio in the best performing tech sector is even higher at 37.47x. Even minor shortfalls in guidance or revenue/earnings can lead to significant corrections in such a climate. The FactSet reports that 31.8% of firms which beat earnings EPS estimates by up to +5% saw average price decline of -0.9%. Source: FactSet Research In fact, overall, positive earnings only drove a 0.9% increase in price (1% 10Y historical average) while a negative earnings report led to 2.8% drop (-2.3% 10Y historical average). Source: FactSet Research Market frothiness elevates risk of a sharp price correction in single names during Q2 earnings. Analysts are concerned as expectations for Q2 EPS YoY growth have been lowered from 9% on 31/March to 8.8% as of 22/June. Despite this, mega-caps remain in solid position. Robust demand for AI, buoyant advertising revenue, globalized revenue streams, and substantial market dominance have positioned them to continue growing at a disproportionate rate. In case the upcoming Q2 results pan out similarly to Q1 in favor of mega-caps, the S&P 500 will continue to outperform the broader market indices. HYPOTHETICAL TRADE SETUP The S&P 500, with its high concentration of mega-cap stocks, is likely to perform better than broader market indices in the coming earnings season. However, recession signals are also flashing. The S&P 500 does not perform well during recessions. Over the last four recessions, it has declined an average of -14%. Comparatively the spread between S&P 500/Russell 2000 spread has increased 1.7%. The S&P 500/Russell 2000 spread has also outperformed during the six-month preceding recessions. Given the S&P 500-Russell 2000 spread's historical outperformance during recessions, a spread position presents less downside risk compared to an outright long position in the S&P 500. This strategy also maintains a bullish outlook on the top-heavy S&P 500's potential to outperform in the upcoming season. Moreover, the spread trade preserves the upside potential in the ongoing rally, as its performance has been comparable to an outright long position in the S&P 500. A view on the spread between the S&P 500 and Russell 2000 can be expressed using CME Micro E-Mini Equity futures. At 1/10th the size of the full-size E-mini futures, the Micro contracts allow for smaller trades with more granular exposure. A long position in the Micro E-Mini S&P 500 futures expiring in September (MESU2024) can be offset by a short position on 2 x Micro E-Mini Russell 2000 futures expiring in September (M2KU24). This position is highly margin-efficient as CME offers margin credit for this spread. Hypothetical trade set up in summary requires entry at 2.69x, with a target at 2.78x coupled with stop loss at 2.6x. The simulated payoffs are described below. MARKET DATA CME Real-time Market Data helps identify trading set-ups and express market views better. If you have futures in your trading portfolio, you can check out on CME Group data plans available that suit your trading needs www.tradingview.com DISCLAIMER This case study is for educational purposes only and does not constitute investment recommendations or advice. Nor are they used to promote any specific products, or services. Trading or investment ideas cited here are for illustration only, as an integral part of a case study to demonstrate the fundamental concepts in risk management or trading under the market scenarios being discussed. Please read the FULL DISCLAIMER the link to which is provided in our profile description.
CME_MINI:MESU2024Long
by mintdotfinance
4
#HEG ltd Cup & handle pattern 20-30% upmove dega kya?HEG ltd cmp 1882, market cap 7264 cr, company is leading manufacturer and exporter of graphite electrodes. PE vs ROCE ratio is better as compared to another leading player graphite India. My concern is the fall in Operating margin trend. Holding% Dec'23 promoter 55.77( 59.62 Mar'21), FII 6.85(9.43 Mar'21), DII 8.85(7.41 Mar'21). Infact some new mutual fund players entered in feb'24 also so Mar'24 DII numbers should be up. Technically the chart is making cup n handle kind of pattern on weekly time frame and breakout above 1931 can bring fast movement. Upside levels can be 1)2335 2) 2470 3) 2575 4) 2763(imp level) 5) 3108. Once 2763 is crossed I will bring sl of remaining qty at 2470 and try to ride the trend till 3661/4557.
NSE:HEGLong
by ssudhirsharma11
3
SOUN a small cap AI stock ready for a VWAP reversal LONGSOUN on the 15 minute chart as fallen again to the anchored mean VWAP. Each previous time this has occurred in the past month, price has bounced into the second or third upper VWAP band line for a bullish momentum move. The mean VWAP is where big players like to pick up and drop off shares. Liquidity is at the highest. Teh Relative Trend Indicator will show best entries where the trend is negative but the returns to the chop zone to climb out of it and go positive. This indicator can function with alerts and notifications. SOUN uses AI and voice control of it to make apps more user friendly and potent. A similiar stock is DuoLingo ( DUOL) which also adds language translation into the functionality. Those on a budget in their trading love the price. Those not on a budget make love the volatility and the quick profits it can bring if traded properly.
NASDAQ:SOUNLong
by AwesomeAvani
1
MACRO MONDAY 33 ~ U.S. NFIB Business Optimism Index MACRO MONDAY 33 ~ NFIB National Federation of Independent Business Index (NFIB) Released Tuesday 13th Feb 2024 Think of the NFIB small business index as a sentiment index, a sort of mood meter for small businesses. The higher the index, the more optimistic small businesses will be about spending more, expanding and increasing or maintaining employees. The NFIB is the nation’s largest small business advocacy group, with more than 600,000 members from all 50 states. Members are typically small to medium-sized enterprises (SMEs). These small businesses account for roughly 50% of the nation's private workforce and contribute to 44% of all U.S. economic activity making them an extremely important cohort to monitor and survey for economic purposes. The NFIB Index data The NFIB Small Business Optimism Index (chart data) is a composite of ten seasonally adjusted components calculated based on the answers of around 620 of the NFIB members. The survey questions cover various aspects of business sentiment, such as hiring plans, sales expectations, capital expenditure plans, and overall economic outlook. The Index figure is derived from all the survey responses, weighted and aggregated to produce a composite score that reflects the sentiment and economic outlook of small business owners. Baseline Level (100): The baseline level of 100 is often considered the neutral point on the NFIB Index. An index value of 100 indicates that small business owners are neither optimistic nor pessimistic about economic conditions. Values above 100 indicate optimism, while values below 100 indicate pessimism. On the chart below I note the relevance of the sub 91.5 level as a breach of this level has historically preceded or coincided with recessions (grey areas). The Chart The chart is fairly straightforward in that the green zone illustrates the optimistic zone (>100), the pessimistic zone is orange (<100) and the recession zone is red (<91.5). At present we are moving out of recessionary territory into the pessimism zone which is an improvement but we are a long way from the neutral level of 100. Expectations for Tuesdays release is a slight move higher towards 92.4. If we do move to 92.4 it will be the highest level recorded since June 2022. NFIB Negative Divergences Here is a supplemental chart that illustrates how the NFIB small business sentiment index has presented clear negative divergences against the S&P 500 during the last three recessions. In addition to the negative divergences, thereafter the following trigger events marked the beginning of thee significant drawdown events of each recession; 1⃣ The NFIB index breached below the 100 level in Oct 2000 prior to the Dot. Com Crash 2⃣ The NFIB index breached below the 91.5 index level in April 2008 prior to the GFC capitulation event 3⃣ The NFIB index breached both the 100 (Mar 2020) and 91.5 (Apr 2020) index level during the COVID Crash. In summary the negative divergences signaled the initial warning signs of recessions, thereafter losing key levels such as the 100 level and 91.5 level signaled the main draw down event initiation. Not all negative divergences resulted in a recession or poor price action and not all recessions came about after a breach of the 100 level however, both in combination add weight to the probability (but no guarantee's). This chart should not be viewed in isolation but should be added to our other charts to help gauge the likelihood of negative and positive outcomes. At present the small cap 2000 index is significantly under performing other stock indices which are breaking past all time highs. The small cap 2000 TVC:RUT adds weight to the struggling smaller businesses in the U.S. when combined with the under performing pessimistic reading of the NFIB small business index. A significantly positive reading on the NFIB could be a leading signal that small caps could start to perform again, catching up with the other indices. A negative reading might suggest the small caps 2000 will continue to lag and struggle. Lets see how we fair on Tuesday for the release of January 2024's survey results PUKA Lets see how we fair on Tuesday for the release of January 2024's survey results PUKA
ECONOMICS:USBOI
by PukaCharts
The rise of the AI cryptocurrenciesThere's a cryptocurrency related to AI called PAAL AI that has surged 2000X from its low last year. I know, it surprised me too! Afterward, I examined some of their partners. One of the most affordable in terms of market capitalization, at just $1.7 million, is VUZZ AI. While I'm uncertain if it will follow the same trajectory, I believe it's worth noting. On February 8th, 2024, they announced that VuzzMind joined the Google Cloud Partner Advantage Program, which is quite impressive!
VLong
by TopgOptions