We’re in an environment where it feels like you can throw a dart and hit big. Everyone’s a Soros. Everyone’s a Peter Lynch.
Risk appetite is alive and well. We’re all making money.
Nowhere is that more evident than in speculative growth. Within the speculative space, the Quantum theme has been one of the strongest pockets of leadership all year.
Whether these companies are the future of computing or just the latest batch of “overhyped science projects” is yet to be determined.
But right now, the flows are real, and the relative strength is undeniable.
Quantum has been the single best basket of stocks to be in off the April lows. Period.
We’ve been tracking these names closely, and it’s paid off. Just recently, we hit our best trade of the year with Rigetti Computing $RGTI.
The leaders — RGTI, IONQ, QUBT, QBTS — have all exploded higher, in some cases posting multi-hundred-percent runs. But the reality is, these trades are now extended. We have no edge up here.
So I’m booking these wins and moving on to new setups.
While digging through the charts this morning, I found some similar stocks on my stalklist that look primed for a big move.
These are what I call the “Forgotten Quantums”…
They are just now completing massive bases and flashing fresh reversal signals. They look a lot like the quantum leaders did a few months ago.
I think the move is to take some profits from those trades and redeploy them in the following two names.
First up is a British Quantum stock completing a fresh trend reversal. This one ticks a few of our favorite themes including quantum, cybersecurity, and space.
Here’s the $875M Arqit Quantum $ARQQ:
Arqit Quantum has been carving out a multi-year bearish to bullish reversal pattern. Price is finally reclaiming key resistance near 41.50, which is the neckline, or breakout level of the pattern.
This resolution marks a clear shift in the primary trend as price is not only piercing through the upper bounds of its range, but also the VWAP from the IPO. This means the average investor is now in the green for the first time in 3 years and buyers are back in full control.
As long as ARQQ sticks the landing above that level, the bias is higher toward the next retracement.
I’m long above 41.50, with a primary trend target of 120.
By the way, ARQQ carries a 40% short interest… meaning 4 of every 10 shares are held short. So if that target sounds extreme, trust me, it isn’t.
Last but not least is an auto parts quantum stock. This one has quantum in the name, but they make EV batteries. But like I said, we’re trading the pattern here, not the business model. Here’s QuantumScape Corp $QS:
QuantumScape is putting the finishing touches on a deep reversal base after an aggressive parabolic advance.
QS is pressing against its all-time high anchored VWAP, a level that stopped a rally attempt back in 2021. If the stock can reclaim this level, it’ll signal that buyers are back in control over the most important timeframe.
In addition, the stock has a 13% short interest, which could lead to a squeeze sooner rather than later.
We are buyers of QS above 13.50, targeting 32. You can use a clean break above 16 as confirmation. Over longer timeframes, our target is near the former all-time highs at 133.
