Hottest Stocks in CW 49/20

The "Fear of Missing Out" – FOMO for short – leads traders to buy stocks whose price has already risen significantly. This trading motive was particularly evident last week with the US company CrowdStrike. The reason for the increased trader interest are the latest quarterly figures of this IT security specialist. Gerid Otte (LionFolio) summarises the most important findings: "Sales growth continues to show no signs of weakness and was 86 per cent YoY. The free cash flow also shows the – by now usual – jump compared to the previous year. The worries that growth could slow down have now been blown away again for the time being, and so the price has reached a new all-time high." In Otte's wikifolio Wachstumsstarke Disruptoren, CrowdStrike has been included for some time with a weighting of around five percent. In light of the strong quarterly figures, his conclusion is hardly surprising: "Of course, I will stay on board."

The "buying the dip" trading motive is evident when traders buy falling stocks in the hope of a bottoming out – in other words, the imminent turnaround. This is precisely what happened last week with one of the most mysterious companies in the world. We're talking about Palantir. The US data specialist went public last autumn and has been dividing opinions ever since. Although Palantir is still making losses, its customers include numerous Western intelligence services.

Taking profits is probably the most beautiful part of trading. Last week, the community did this in particular with the Bitcoin Group stock. The price of Germany's largest crypto trading platform has risen dramatically in recent weeks. The company can above all thank the ongoing Bitcoin rally for this. The current stagnation of the cryptocurrency just below its all-time high is likely to have prompted traders to take profits.

A good captain is the last to leave a sinking ship. Good investors, on the other hand, behave completely differently. They minimize losses and dump "sinking" stocks. This is what recently happened at the German machine manufacturer Manz. The stock closed down around five percent for the week. However, with the price close to its all-time high, it looks more like a correction than a sustained imbalance. The price setback also caught Christoph Klar (SystematiCK) and his wikifolio Trendfollowing Deutschland last week. "Today (4 December) my initial stop loss on Manz broke intraday, so I also sold without hesitation. The stock was then able to close almost at its daily high during the course of the day, but you have to accept that," comments the trader.

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