Yahoo Finanza Three Under-the-Radar Momentum Plays
Momentum in big tech stocks peaked in September, with mixed price action across most household names into year’s end. However, momentum traders are still doing their best to buy high and sell even higher as we enter 2021, lifting lesser-known equities into the stratosphere. These issues could offer more consistent profits in the first quarter than last year’s winners, who are now vulnerable to capital gains tax selling pressure.
Broad-based ‘momentum markets’ are quite rare, unfolding when lots of fresh capital enters the markets, as it did after the U.S. government issued stimulus checks in the second quarter of 2020. More often, these vertical buying impulses recede into a selection of lower-capitalized issues that attract far less attention, at least until a blow-off phase often triggered by sudden media or Wall Street interest.
Let’s look at three of these under-the-radar momentum plays.
GreenPower Motor Company
Vancouver-based GreenPower Motor Company Inc. (GP) manufactures, distributes, and sells all-electric commercial vehicles that include transit, school, and charter buses. The stock is riding high on Tesla Inc.’s (TSLA) coattails, with investor EV sentiment hitting all-time highs. The stock closed 2020 at 29.01 after opening the year at 1.55 and is trading within three points of November’s all-time high at 32.50 in January’s first session.
Bit Digital
As the name suggests, Bit Digital Inc. (BTBT) is engaged in the bitcoin mining business, changing its name from Golden Bull Ltd. in September. The cryptocurrency is on fire these days, lifting more than 400% in 2020. It’s replaced gold as a hedge against central bank scheming and political fears that include the rise of extremism in U.S. politics. Neither of those issues is likely to dissipate in 2021.
Silvergate Capital
Silvergate Capital Corp. (SI) offers banking products and services in the United States and overseas. Momentum traders have taken note because the company also provides cash management services for ‘digital currency-related businesses’ through the Silvergate Exchange Network. The stock caught fire in October after spending most of 2020 trading in the mid-teens, lifting to 74.31 at the end of December.
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Disclosure: the author held no positions in aforementioned securities at the time of publication.
This article was originally posted on FX Empire
