Stocks gave some back this week, but when I look beneath the surface, I really like what I see from market internals.
Quantum stocks are red hot again.
Space & exploration names are perking up.
The new nuclears are having a monster week.
Heavily shorted stocks are squeezing.
And let’s not forget the cryptos. How about those new highs in Bitcoin!?
Speculative growth and technology continue to lead and have been doing it consistently since the April lows.
Participation is broadening, and a growing list of risk-on stocks are assuming new leadership roles.
It’s all very bullish, and we want to stay overweight offense as long as this is the environment.
So today, we updated our Speculative Growth Leadership Scan that we shared earlier in the month.
The top-performing stocks have been coming from this list all year. And after flipping through these charts, it doesn’t look like that’s changing.
Let’s dive in and talk about some of our favorite speculative growth names to buy right now.
Our first setup is a $4.9B company engaged in the development and delivery of quantum computing systems, software, and services. Here’s D-Wave Quantum, Inc. $QBTS:
After a couple of months spent digesting last year's gains, QBTS just printed a breakaway gap above a key polarity level. This decisive move marks the completion of its IPO base.
On relative terms, the stock is also resolving from a multi-year base and making all-time highs. We like to see this type of action from the relative trend as it is a reliable confirmation signal for the breakout.
As long as we’re above 13, we want to be long with a target of 34. I like the idea of buying this one on any weakness we get next week.
D-Wave Quantum also has a double-leveraged fund, $QBTX, which is up around 300% on the month.
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