GE Aerospace
Boring General Electric (GE) (Aerospace) shares are in the spotlight today with the stock ripping more than 4% higher.
I joke when I say “boring” because this stock is outtrading the Nasdaq 100 and a lot of its strongest performers. Shares are 50%+ higher year-to-date. This stock has performed so well over the last year that it is preparing to break out to new all-time highs.
You have to go back to 2000 to see share prices this high, and it all comes back to the massive restructuring the company has made. Over the last two years, GE has spun the company’s segments into separately traded companies.
The move focuses on the core strengths of each company, and GE Aerospace has places to go after
Watch for shares to cross $160, which will officially mark the new all-time highs for shares, as this will garner more attention from longer-term investors.
Meta Platforms
Meta (META) shares have been preparing for a bullish breakout for the last month. Now, it’s time.
Shares of the social platform and AI company are making a move above the $525 and their top Bollinger Band. I’ll explain both.
First, a move above $525 is simply a break above the recent trading range. This range has been bound by $475 on the low end and $525 at the top. A simple breakout like this gets the attention of algorithms and technical traders alike, which should bring more volume on the buy side.
The top Bollinger Band is a more interesting break. Breaks above this level will spark what I refer to as a “volatility rally.” These rallies, especially ahead of earnings, generate the fear of missing out and “buy the rumor” moves.
Remember, META absolutely crushed expectations last quarter, and we didn’t see analysts’ targets for the stock move much higher ahead of the April 24 earnings date.
I’m targeting a move to $550 over the intermediate-term outlook.
Trump Media & Technology Group
If you haven’t seen Barry Diller’s comments on CNBC from Thursday, look it up.
Shares of Trump Media (DJT) are tumbling 10% today as the stock rips through its 20- and 50-day moving averages on the same day.
From a technical perspective, this is a double mark against the stock as it suggests that the next five to ten days will see accelerated selling and an increase in negative momentum.
The stock is heading towards a $40 price, which should provide some support from round numbers, but faces additional fundamental pressures.
One pressure is the “MEME” status. As many have pointed out, the stock trades with an unusually high valuation compared to the company’s posted revenue. This is the signature of many MEME stocks such as Bed Bath & Beyond (formerly), Gamestop (GME), and AMC Entertainment (AMC).
Shares of DJT may find support at $40 but would still remain “too hot to own” from the technical and fundamental perspective.
For what it’s worth, the options market has prices some extreme downside targets into the future for DJT stock. As of today, the January $40 puts are trading for $27.55. This means that the maximum profit if DJT went to $0 by January 17, 2025 would only be roughly $13 per contract or less than 50%.
That’s a sign that the market’s equivalent of “The House” is expecting very bad things for Trump Media & Technology Group.
About the Author
Chris Johnson (“CJ”), a seasoned equity and options analyst with nearly 30 years of experience, is celebrated for his quantitative expertise in quantifying investors’ sentiment to navigate Wall Street with a deeply rooted technical and contrarian trading style.