Watchlist Week of May 23rd, 2022

SPX Corporation (Short Idea)

SPX Corporation (SPXC) is a $2.2 billion infrastructure equipment company for the heating and air industry.

Here’s how the chart is setting up…

TradingView Chart
Daily Chart of SPX Corporation (SPXC) — Source: TradingView

And here’s how the stock is setting up with my Stock Surge Indicator (SSI)…

  • Surge score: 38/100
  • % Above 52-wk low: 13%
  • Sales growth: +7%
  • Return on Equity: 12%
  • Triple momentum: yes (short)

SPXC has been falling all year. The stock has stair-stepped its way down in a series of lower lows and lower highs.

Resistance can be found at the red 50-day moving average where I have highlighted sell zones on the chart above. 

Consider shorting SPXC here with a stop above the $50 level.

Alarm.com Holdings, Inc. (Short Idea)

Alarm.com Holdings, Inc. (ALRM) is a $3.1 billion technology company that makes smart devices and systems for residential and commercial properties.

Here’s how the chart is setting up…

TradingView Chart
Daily Chart of Alarm.com Holdings, Inc. (ALRM) — Source: TradingView

And here’s how the stock is setting up with my SSI…

  • Surge score: 38/100
  • % Above 52-wk low: 12%
  • Sales growth: +19%
  • Return on Equity: 19%
  • Triple momentum: yes (short)

You’ll notice the chart for ALRM looks almost identical to SPXC…

Both are following the same pattern of lower lows and lower highs and finding resistance at the 50-day.

I suggest using last week’s rally as an opportunity to sell ALRM short with a buy stop around the $65 mark. 

If the trade works properly, the stock should make new lows in a week or two, which is where I would begin taking profits.

Advanced Micro Devices, Inc. (Short Idea)

Advanced Micro Devices, Inc. (AMD) is the $153 billion semiconductor company best known for its computing and graphics processors.

Here’s how the chart is setting up…

TradingView Chart
Daily Chart of Advanced Micro Devices, Inc. (AMD) — Source: TradingView

And here’s how the stock is setting up with my SSI…

  • Surge score: 59/100
  • % Above 52-wk low: 16%
  • Sales growth: +71%
  • Return on Equity: 52%
  • Triple momentum: yes (short)

The fundamentals for AMD actually look good. But as always, the market knows best…

And the market has been selling AMD en masse for the last six months.

Last week, the stock tested its 50-day moving average (red line) without success. 

The stock appears to be rolling over, giving investors a low-risk opportunity to play the short side.

Consider selling AMD short here with a stop above last week’s high at $104.25. 

Ross’s Watchlist
  • SPX Corporation (SPXC) Short Idea
  • Alarm.com Holdings, Inc. (ALRM) Short Idea
  • Advanced Micro Devices, Inc. (AMD) Short Idea
Price Surges
  • Keppel REIT (KREVF) +73.53%
  • Deckers Outdoor Corporation (DECK) +13.74%
  • Eve Holding, Inc. (EVEX) +13.41%
Volume Surges
  • Immix Biopharma Inc (IMMX) 68.0 million shares
  • Adv Micro Devices (AMD) 40.6 million shares
  • Apple Inc (AAPL) 35.4 million shares
Revenue Surges
  • Digital Turbine, Inc. (APPS) +337.57%
  • Cleveland-Cliffs Inc. (CLF) +264.76%
  • MGM Resorts International (MGM) +140.47%
Insider Buys
  • Asana, Inc. (ASAN) $149.3 million
  • Netflix, Inc. (NFLX) $5.7 million
  • EverQuote, Inc. (EVER) $3.0 million