Nutanix $NTNX to be Added to the @TradeIdeas HOLLY Hot List

May 3, 2018

The S&P 500 once again flirted with it’s 200-day moving average today, then rallied hard off the bottom on impressive volume, once again frustrating Bears.

But all of this is irrelevant noise to our non-emotional Artificially Intelligent friend, HOLLY. She just looks for edges backed by statistics and finds trades that make sense. She’s emotionally impervious to wild price action, news headlines, and social media loudmouths. She simply follows her plan and executes.

In recent days, HOLLY has gotten involved once again in recent IPO Nutanix, ticker $NTNX. The stock came public almost one year ago and traded around $15 on it’s first day of trading. Not around $52, it’s safe to say this stock has some momentum. And with a current market cap around $6 billion and average daily trading volume near 4.5 million shares, there is plenty of liquidity for everyone.

Since middle of March, NTNX has formed a high base and with HOLLY once again nibbling into long trades, that gives me confidence to wade in with her.

We’ll be buying NTNX at tomorrow’s (Friday) opening print and we’ll hold this name long in the portfolio until we experience a 20% pullback from highs. As always, size your position accordingly if you plan to follow us into this trade with our wide stop level.

HOLLY Hot List portfolio update

Our three biggest winners of the past 5 trading days have been TDOC + 6%, GDS + 8%, and HFC + 9%. HFC continues to etch new all-time highs, now putting our gains since our April 10 entry past +20%. A pullback after such a strong run is inevitable, but I’m liking the way this stock is playing out. This one has the potential to be a monster.

Meanwhile, NCLH continues to struggle and is closing in our stop price which currently set at 48.94. And curiously, our three banks (KEY, FITB, FFBC) have struggled of late. Not what stock market bulls want to see, so I’m keeping a close eye on developments there.

Prices and values as of the close of trading on May 3, 2018


If you’d like to learn how HOLLY, the Artificially Intelligent Virtual Analyst, can improve your trading and investing results, please visit Trade Ideas.

Good luck out there!

~ Sean McLaughlin (@chicagosean)