Power Plays Weekly Roundup + Trimming UBER

September 9, 2022

By Scott Redler

Uber (UBER) has been acting great, but this market has shown us time and time again that it is prudent to take gains into strength. So let's take off 1/3 of UBER off for Power Plays here. The chart looks good but I want to play things a little bit safe.

Look at our recent winner Occidental Petroleum (OXY). It shot all the way up to $77.13 and then it broke $65 less than two weeks later. We're seeing round trips like that all the time in 2022, and I doubt that changes any time soon.

The market's had a pretty nice bounce from extreme oversold levels. And we had a very positive reaction to yesterday's ECB rate hike, which pushed down the USD. That is constructive for equities.

I have been trimming my own holdings today, including selling my $QQQ long from earlier in the week.

SPY has very big resistance at $405 to $406, so I believe it makes sense to be a little careful in the near term.

A little digestion would be nice here, because that could open up the opportunity to add some new names to our plate.

Let's go over our existing ones:

Uber (UBER): Like I said, UBER looks good and could be a real leader in the near-term if the market stays firm. There could be more upside from here, but taking a little off makes sense just because of how many stocks give back gains after popping.

Pinterest (PINS): PINS has been outperforming and is surging today. It could see the $26 to $27 area in short order - maybe as early as next week. That's where I'd think about trimming, but I would not be surprised to see it be the #1 performing social media name into year-end.

Global X Uranium ETF (URA): the news flow regarding nuclear energy has been positive as of late given all the power shortages we are seeing worldwide, which is keeping some reactors online longer-than-anticipated. URA can be a little streaky, making fast gains before pulling back. But it could be one of the best ETFs into year-end. So I still like it.

Have a great weekend!


Scott Redler Positions Disclosure