Box Inc $BOX to be Added to @TradeIdeas HOLLY Hot List

May 7, 2018

This provider of cloud content management software came public in January of 2015. It promptly traded lower from Day 1 and hasn’t seen higher prices — until today.

HOLLY saw something early last week when she signaled a trade on April 30th, getting subscribers long at $23.14. HOLLY had a false start in $BOX back in March, but the beauty of machine-driven artificial intelligence is, she doesn’t bring any baggage along with her into new trade opportunities, un-emotionally tackling each edge in isolation, unaffected by past outcomes. This allowed her to stick with this name and if you got long at her last signal, your patience is being rewarded.

Even though the move began a week ago, it feels like this stock may just be getting started. Today marks it’s first official blue skies launch into new all times, and I couldn’t be more excited about an opportunity like this. The stock sees average daily volume north of 3 million shares and has a market cap now exceeding $3 Billion. And it has a short float of more than 7% of outstanding shares — every single one of whom is now underwater in their trades and may soon need to scramble to cover their short positions (that are exposed to theoretically unlimited risk), effectively adding tinder to a momentum fire. There’s so much to like about this situation if you’re a long swing trader.

As the tweet above mentioned, I’ll be adding this stock to the HOLLY Hot List at tomorrow’s opening print, hoping for a big move, but trailing the stock with a generous 20% stop loss for when momentum exhausts itself.

HOLLY Hot List Portfolio Update:

The market’s rise in the last two trading days has offered us the ability to raise several trailing stop loss levels in our positions (read: new High Prices!). The biggest leaders of the past 5 trading days have been $NTNX, $GDS, & $HFC (all of which set new high prices levels for us). The most notable laggard has been $NCLH which is sadly closing in our stop loss level.

Prices as of the close of trading on May 7, 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)