Mish's Market Minute

3D Printing Rings in the New Year!

 | 

Mish's Market Minute Advantage members bought DDD on November 9th. Then, the service added to the position on Wednesday, January 6th. Furthermore, Mish went on Real Vision on the 5th and told those attendees that she believed the stock would double.

Who could have imagined the stock would double the very next day!

The company exploded Thursday, reaching a high of 25.33 or a 125% percent increase from the prior day close before settling at 22.91 or 104.54% higher.

On Thursday, the company, which manufactures and sells 3D printers along with 3D scanners and materials, rose upon news of its announced $64 million dollar sale of propriety software. Paired with a preview of its Q4 2020 results, the stock went flying up to price levels last seen in early 2015.

Not all trades work out this quick, but what made DDD stand out amongst the crowd?

First, it's in an emerging mega-trend. "The industry is expected to grow at a compound annual growth rate of 26.4 percent between 2020 and 2024," Statista Research Department reported. With 3D printing equipment becoming cheaper, it has also become easier for companies going forward to incorporate 3D printing into their business.

Second, there was a recent bullish phase change where the 50-day moving average crossed over the 200-DMA, resulting in a golden cross.

Phase changes offer great insight into building or declining momentum of securities, giving a great way to navigate what to watch and, more importantly, when to watch it.

On November 9, 2020, DDD had confirmed the phase change to recuperation, Mish's favorite as the risk is minimal. We added after DDD cleared the 200-DMA or entered into an accumulation phase. By the time the golden cross occurred, we were fully locked and loaded. After taking 2 profit targets, we waited until Jan 6th to add back to the position because DDD also cleared back over the 200-week moving average.

The rest is the stuff that makes everyone go "WOW". And the best part is that many others, besides her members, also made money on this stock because of her transparency on the trade.

What happens from here? After 2 more profit targets and a more than 180% triple on the trade from original entry, we wait for some consolidation to add again.

Bottom line, the megatrend of 3D printing went from infancy to toddler to adolescent, all in a day. Now, we will play this one into adulthood.

Watch Mish on RealVison give her insight into the new year!

Whenever you're ready, here are 3 ways I can help you reach your trading goals...

  1. Stay one step ahead of the market with my daily market analysis, Mish's Daily.
  2. Get the foundational building blocks of my trading strategies from my book, Plant Your Money Tree: A Guide to Building Your Wealth, and accompanying bonus training.
  3. Trade with me and take your trading the next level by following my real-time trading ideas as a member of of my premium services.

  • S&P 500 (SPY): New highs. Watching 375.45 to hold as new support
  • Russell 2000 (IWM): New highs
  • Dow (DIA): New highs with 306.66 new support
  • Nasdaq (QQQ): 303.60 support.315.29 to clear and hold
  • KRE (Regional Banks): 59.38 next main resistance level
  • SMH (Semiconductors): Broke 225.00 resistance and cleared new highs
  • IYT (Transportation): 228.04 high to clear
  • IBB (Biotechnology): 148.50 support. 158 resistance
  • XRT (Retail): Doji day. Digesting large yesterdays move up


Mish Schneider

MarketGauge.com

Director of Trading Research and Education

Forrest Crist-Ruiz

MarketGauge.com

Assistant Director of Trading Research and Education

Mish Schneider
About the author: serves as Director of Trading Education at MarketGauge.com. For nearly 20 years, MarketGauge.com has provided financial information and education to thousands of individuals, as well as to large financial institutions and publications such as Barron’s, Fidelity, ILX Systems, Thomson Reuters and Bank of America. In 2017, MarketWatch, owned by Dow Jones, named Mish one of the top 50 financial people to follow on Twitter. In 2018, Mish was the winner of the Top Stock Pick of the year for RealVision. Learn More
Subscribe to Mish's Market Minute to be notified whenever a new post is added to this blog!
comments powered by Disqus