Power Plays Weekly Roundup
January 31, 2025

By Scott Redler

The market impressed this week, digesting a large number of key earnings reports and economic numbers.

And we are looking to close the week strong, with nice relative strength in tech, though it would be nice to see small caps pick up.

Going forward, we'll have to be on guard for surprise news out of the White House -- especially as it relates to tarifs -- but otherwise, it's hard to argue with the momentum.

The QQQ's have filled the "DeepSeek Gap" even without key names like Nvidia (NVDA) and Broadcom (AVGO), which shows that money is rotating instead of just fleeing the market.

This is why it's better to focus on finding opportunities than assuming disaster.

Still, I'd keep an eye on TLT because the market does not want higher rates. The firmer TLT is, the better.

Before we get to our ideas, I want to discuss the quantity of ideas I issue.

This week, we had 3 new ideas even though Power Plays is "officially" a one idea per week service.

This is for three reasons.

The first is that I like to overdeliver because I appreciate you working with me. Over the long run, we'll probably average about 1.5 new ideas per week.

Second, we do have the odd week (like last week) with no new ideas.

And finally, sometimes there are just extra opportunities that I want to jump on. And I'd rather not hold back.

Now let's go through our names:

Nio (NIO): I added this speculative EV name on Thursday on the belief it could follow Tesla (TSLA) higher. It's down so far, but the overall pattern remains intact so I still like it.

Tesla (TSLA): its earnings report was far from special, but Elon Musk said all the right things, and painted a picture of a very bright future. And of course, he has an important connection to the White House. I believe Thursday's gap pivot at the $384 level will hold, setting the stage for a nice rally.

SPDR S&P Biotech ETF (XBI): biotech has underperformed for years, but I expect XBI to grind up to take the bears by surprise. It may not deliver fireworks, but it looks good nonetheless.

Doordash (DASH): we are down to our last 1/3 here. It's been one of the best swing names in the market, so the momentum has been great. I would not chase it up here.

-Scott

Scott Redler Positions Disclosure as of 2025-01-24 at 10.31.18 AM