Qullamaggie Stream Notes: 23 May 2023
Market outlook, AI and quantum, EP charts and breakout conditions
Kristjan’s positions
AI
APLD
CVNA
DNA (new)
FTCH (new)
IMGN
LI
MNDY (new)
PLTR
QBTS (new)
SOUN
(Last time Kristjan had this many positions was January 2023 or earlier. There were no changes in his positions during the stream.)
Kristjan’s watchlist
IEP
Market outlook
Everyone is still so bearish, talking about debt ceilings, banks, etc. Kristjan calls them “a bunch of whiners”.
The best time to go long is after a bear market, and in the last stages of a great bull market. Right now, Kristjan thinks we are in the early stages of a new bull market, and EPs have been working for the past month (though not breakouts — more on that later).
AI and quantum
The list of AI and quantum computing stocks that Kristjan made in January 2023 (see below) has been starting to pay off over the past few weeks. One by one, they’re starting to run — the market is beginning to wake up to their potential.
When theme stocks go, they go. And when they go, the whole group starts to move.
That said, most stocks in the AI and quantum space are, as Kristjan puts it, a “piece of s**t”. They’re mostly speculative names. However, $IONQ has real revenue and real customers, e.g. Microsoft, Amazon and Google — hopefully it’ll pull back over the next few weeks.
The list
Kristjan has a list of AI and quantum computing stocks, and says everyone should have one. You should do your own research, but this is Kristjan’s list (which he made in January 2023 and has expanded since — it’s all about preparation!):
AI
AITX
AIU
AIXI
AMST
APLD
ARQQ
AUGX
AUUD
BBAI
BFRG
BGRY
BIDU
BLBX
BOTZ
BZFD
CDIO
CXM
DAO
DNA
DPRO
DYAI
EVGN
EXAI
FOXO
GAME
GDVM
GFAI
GRRR
GSIT
HOLO
HYPR
IDAI
INOD
INPX
INTA
IONQ
IOT
IRNT
JG
KRBP
KRKR
LAZR
LIZI
LTRN
LUCY
MARK
MCLD
MCOM
MDGS
META
MMAT
MRAI
MTEK
NFTG
NIR
NOTE
NRDY
OPRA
OTRK
PATH
PEGA
PERF
POAI
PRST
QBTS
QUBT
RCRT
RGTI
RMBS
RSKD
RXRX
SAI
SDGR
SECO
SES
SMCI
SOUN
STAF
SVRE
SYM
VERI
VUZI
WLDS
YEXT
ZDGE
ZH
EP charts
There have been a lot of great EPs in May 2023 in small, mid and large caps. It’s probably been one of the best months since November 2021.
For example, $LMND had a great earnings EP on 4 May 2023 — big volume, good follow-through:
$FUBO had a great earnings EP on 5 May 2023 with big volume and good follow-through:
$EVLV had an EP on 11 May 2023 on an earnings beat:
$ACVA had an earnings EP on 11 May 2023. Even though the numbers were rubbish, the setup worked. The volume was good, and remember: volume always trumps numbers.
$APLD had an EP on 16 May 2023 on news (announced an agreement with its first AI cloud computing customer):
$PLTR — very liquid, had a great EP on 9 May 2023:
Many biotechs had great EPs too — $LEGN on 19 April 2023, for example:
$IMGN, another biotech, had an EP on 3 May 2023:
$ENVB — another biotech that had a great EP, which almost doubled within a few hours from the correct entry point (ORH on 18 May 2023):
$HEPA had a great EP on 22 May 2023 — look at that volume! Kristjan calls it a “picture-perfect EP”.
See the intraday (5-minute) chart below — gapped up, faded, started building higher lows, then took out the ORH (where I added the blue line):
Kristjan says that to trade EPs, you really only need one hour a day: research 20–30 minutes before the market open, and enter within the first 30 minutes after the open.
Breakout conditions
Some stocks, e.g. $CVNA, are starting to shape up:
However, despite the recent rally, very few stocks fuelled it — just mega caps like $NVDA. Breakouts haven’t really been working since November 2021, and small caps are essentially dead.
Breakouts work best in small and mid caps, in an uptrending market. Currently, we’re in a range-bound market (e.g. $SPY has been going sideways for about a year now), in which buying bottoms (not Kristjan’s strength/edge) and EPs work. So Kristjan’s just focusing on what’s working right now: EPs. He doesn’t trust breakouts at the moment, except perhaps in really hot themes.
Because we haven’t had breakout conditions, you need to adapt. But once classic breakouts, HTFs, etc. start working again, they’re going to be money printing machines.
More about Qullamaggie
To learn more about Kristjan Kullamägi, aka Qullamaggie, and the way he trades, visit qullamaggie.com.
All past streams are available on Kristjan’s YouTube channel.
All my Qullamaggie notes are available here.
Hello, You mentioned that "But once classic breakouts, HTFs, etc. start working again,"
What is HTFs breakout ? Thanks!
Thanks for putting the work.
What would the source of the fundamental info he uses be? Any idea?