The Big 3: PLTR, CRWD, NET

to trading 360. I'm Marley Kayden. It's time for the big three. We've got three stocks for you and three charts. Rick Duquette will be taking us through those. Here to take us through his picks today. Tim Bowen chief technical trainer at stocks to trade.com. Great to have you both on. Happy Friday to you Tim. Always great to have you with us. Would love to kick things off how we always do a big picture thought on the markets. The earnings we've gotten this week. The data retail sales a little weaker than expected this morning. Yeah. You know nice to see. I was actually kind of surprised. I expected to see you know here we are. You know looking at the S&P. We're red. On the day when that number first came across I was kind of like whoa here we go. But really you know we like something that I do as a as a short term trader. And, you know, I use this quote to myself about 100 times a day. And it is, you know, we don't anticipate we react. And I think this is a good example of that. You know, like I said, when that number came across, I was kind of like, here we go, getting ready for some stops, you know? ET cetera. And then market actually kind of perked up a little bit. And yeah, we are down here. But I think it's encouraging. And I think that that is kind of overweighed. You know, as we see some of this poor economic data, I think it's overweighed by the earnings. You know, I've got a tweet here up, you know, S&P 500 profit margins hit highest level ever recorded. And it looks like, you know, there's a chart. It's from barchart.com. And I mean it looks like a lot of the charts I bring you guys every week. It's kind of like those profit margins have been grinding up and up and up. You know, the big dip in during, you know, Covid, obviously, but it's been was uptrending. And then here we are, you know, kind of that parabolic leg. So I think that when you look at the disconnect between the economy and the market, you know, obviously Schwab is a trading channel. I am a trader. You know, we like as much as I don't like to say, oh, you know, bad economic data and, you know, people still not where they want to be from a trading perspective. You know, Mali, Rick, you've heard me say this almost every week. It's a target rich environment. When we look at these tech stocks strong earnings. There's still a lot of trades out there. And I think there's an absolutely a lot of opportunity out there. And you know this is a theme I've used you know since I started joining you guys about a year ago is just, you know, the market, if you over the last couple of years is just completely disconnected from reality trade, the price action. You know, that's, that's what Rick's the expert on is interpreting the price action, looking for opportunity. And you can hide under the bed worried about the economic numbers. Or you can get in the market and maybe offset some of that bad stuff that's happening, happening in the economy by placing some of these trades and some of these, you know, big earnings winners and technology stocks, etc. there's opportunity out there if you're willing to go get it. All right. So we'll let some of the long term investors have to hide under the bed and come out when they feel good about things. But when we're trading, you've got some big names here in your big three today. So let's talk about Palantir. I know you've been a long time fan of Palantir. They're a volatile name. They are a divisive name. I had a guest tell me last week that Palantir is the most overrated AI stock. So I would love to get your thoughts on that, Tim, since I know you're a long term bull on this name and how you're looking at it for opportunity right now. Yeah, you know, I mean, I mean, morally, I mean, I know you talked to a lot of people every day, but, you know, this is that, you know, I'm unabashedly admit that I am a major Alex Karp fanboy. Okay, big man crush. You know, Steve Jobs was one before that. Elon Musk, Alex Karp as well. Now, I think the problem with Alex, like you mentioned, that is he doesn't pull any punches, man. He he's kind of like me. He just kind of says what he thinks. And because of that, you know, a lot of people don't like that. And they kind of look at the guy, you know, again, kind of reminds me of Steve Jobs. I mean, obviously Elon too. I mean, these are guys that, you know, they air their opinions out there. But I mean, you look at whether it be Apple or Tesla, you know, and then you proceed into Palantir, I think a lot of people just get twisted up. They hate the company because of some of the stuff that maybe some of the executives or the CEO say, and they overlook the fact that, in my opinion, they have some of the greatest technology out there, their ontology layer. You know, one thing that I really like about Alex Karp, he's a big open model guy. You know, I've shared my opinions, even though I am an anthropic and an open AI user, I don't like a lot of stuff that they have been doing to close these models off and reuse people's data. So I think that the big reaction to Palantir, this big bounce this week was a lot of the reaction to the fact that Palantir is kind of taking a contrarian input there. And, you know, I'm a huge fan of the US military. I just look at what Palantir has allowed us to do to keep the world safe and keep our US service members safe and give them the data they need. And in my opinion, never changed all through the summer. I know the stock summer and spring, the stock was a mess, but I think we're back on the right trend. And I think that right around here, if you've avoided that, you know, kind of summer lull, I think this is a great buy. And I think come fall, I'll probably come on and be like, hey, Mali, Rick, look at Palantir at all time highs. You won't even have to. Because if that happens, you know, I always give credit where credit is due. So I will make sure that you get it. But Rick, let's look at this chart. I mean, as Tim just highlighted, it was a mess through a lot of the spring and the summer. Now we've got a very steep uptrend for Palantir. So what are you seeing in the technicals. Yes. Lost almost half its value from the highs to the lows here. But now we find ourselves up 66% from those lows that we saw near 106.37. A notable gap to the upside on earnings that was established here gave us a relative low point here. Since earnings of 143. We also have significant low areas to watch out for potentially based on this area here, lows and then subsequent highs and then a repeated set of highs here. Those come in around 166 and 162. Meanwhile to the upside, 180 is where we've topped out a few times recently. If we were to break to the upside there, 187 stands out because that was also a high point after a gap to the downside that was retested earlier and never quite broken. Since we have made our gap up, we have been trading within an upward channel type shape between our two white lines. Going across these lows. Duplicate it, put it across the highs. It fits pretty nicely here. Certainly not an ironclad boundaries that you know won't break, but just an idea of where to look for potential support or resistance based on the price trajectory. So our moving averages here, five day EMA is the only one that's really anywhere close to our current price activity that comes in near 173 40. That would also represent a breach of our channel that we just described. So be on the lookout. If that does start to happen, we can see RSI now, a bit of a zigzagging pattern here in and out of the overbought area, just a tad above that 70 threshold right now. That is what the bulls would want to see, what would be for it to remain there and start making new highs. The bears would want to see a break below that 70 threshold, and for price to break below its own boundaries as well. Volume profile shows that we had a node here centered around 155 or so. Another node here around 180 roughly. All right. Right now we are looking at Palantir down a little bit on the session. We're down about 1.25% right now at 17681. Let's jump over now to your next pick. CrowdStrike having a really good year so far. We're up close to 90% in this name. That had had some really negative headlines tied to it over the last two years. So what's your outlook for CrowdStrike, Tim? Really, you know, I'll keep this one quick. I got a little wordy in the in the opening statement. A lot to be excited about. You know, it's really just kind of goes back to the big three from last week. You know, I know I use this quote a lot, but you look at this as one of the ideas last week. I know it's red today, but you know, 2% still near the highs. But nice trend over the last week. It's kind of one of those ideas that, you know, I say it all the time. If it does no wrong, you stay long. Look at that beautiful chart there. Now one thing I do want to mention, I'll keep this the breakdown of CrowdStrike quick because I said it last week, I almost you'll notice the mustache is back. Magnum Pi Day is this Sunday for the Detroit Tigers. I almost wore the full get up with the flower shirt, the hat. I do have the Pepsi Rolex, but I do want to say this Marlin. Rick, I don't know if you're Cubs or White Sox fans, but the Tigers are taking on the White Sox at the Magnum Pi Day. So I'm hoping they pull it out and we bring it home for Magnum. So I am a Cubs fan, so I will I will root for your Tigers on Magnum Pi Day. But do not tempt us with any more costumes, because I was promised an astronaut for space X, and I don't forget any of this stuff. And you said you were going to dress like a bull at one point, and I haven't seen any of these outfits, so one better show up soon. Magnum Pi was going to be a little too over the top, but next year I will do it. Okay. All right, we'll allow it. Let's walk through this one though. CrowdStrike we've seen a nice move to the upside. Are you seeing some sustained momentum here in the technicals. First of all South Side or Sox. But anyway for the chart we can see a channel type shape here. Lows here and here. Give us another channel. This one's very wide and very widely spread out. Though we can see here that it does line up reasonably well with the high points that we saw. So now our steeper trend line that we had in blue here that was broken recently did not translate into a big breakdown or anything. Rather, we actually have made new highs since then. So we had our old highs here 290 around 218 or so. We are retesting those areas now. We had kind of a sideways chop since then despite we making significant new highs around two 2750 today actually that that was the new intraday high. But so that remains an area to watch out for. If we break lower relative lows come in here near 202. Another notable low point here near 174. Also our five day EMA 220 is about where we are now. We're a little bit below that level. So our 21 EMA 206 or so is our teal line there representing one month. That could also be an area to watch out for. RSI showed a little bit of a bearish divergence here. We did make a higher close just kind of marginally. But RSI made a lower close here. So now we're getting a little bit of a break down below that 70 threshold. So look to see if that materializes into something more pronounced. Finally our volume profile in this case we can see here and here nodes around 190 and 170 are the ones that stand out the most. All right. Right now as we look at CrowdStrike down about 2.7% on the session and we are at 21945. Let's take a look at your last name here. We're talking about Cloudflare. We're not too far off of its 52 week highs that it hit post earnings. I think as I'm just looking at how high it was today, we got within $0.50 of that number. We're a little off of it now at about 319. But how are you looking at Cloudflare. So, you know, every Friday morning and I still appreciate you guys bringing me back every Friday morning. You know, when it comes to the big three ideas, you know, I built up a swing trade AI a couple of years ago that looks for, you know, hot sector, hot theme type stocks. And every Friday morning, I basically talk, have a conversation with the IAI about, you know, what we're looking for for the big three ideas. Last week I had four basically, I deliberated, you know, as the human, I had to get it down to three. Had to argue with the AI a little bit. Net was one of the four and I, you know, opted for CrowdStrike last week worked out pretty well, but net didn't make the cut last week and bummer it didn't. Had a great week. Cloudflare you know, you know everyone knows this company. I mean substantial part of the internet runs on this company. They've been doing a lot of, you know, security around and, you know, and infrastructure around the AI agents and, you know, the build out of AI. And as you mentioned, just a really positive earnings report, very bullish chart, hot type sector stocks that we look for and just a really great opportunity. I think here, you know, when people talk about, you know, a kind of a AI infrastructure play that may not necessarily be in directly in AI, but supports all of these companies that are building out, whether it be agents or apps or supporting AI, etc. All right. So let's look at Cloudflare. Here it is under a little bit of pressure today. We are down a little bit more than 3%. So moving much lower than the broader market is. But what are you seeing in the technical setup? Because I see we had an upward sloping channel, but then we've since got a much steeper one going here. Yeah. So what we would be looking at here, we did have our breakout from this shape. Our more recent shape is this very narrow very steep channel in our white lines here. We hit our highs just yesterday. 33222. From there we've given back a good deal of those gains, but still we remain significantly above our old best close that we saw previously. So we can see that that level was more around 311. So we're holding pretty steady above that point for now. Still, though, the day is quite young. We could see a lot happen from now to the close, but those are areas to keep in mind here 305 as well. And also 290 just highlighting some previous notable highs. So now if we were to look at our moving average in this case again, we have our five day EMA near 315 lining up with our trend line. So that presents a confluence point for a potential supportive area or a breakdown. If you had more of a bearish bias here 21 day EMA and teal comes in near 291 RSI in this case a bit below that 70 threshold. Again, we were just above it yesterday for one day. So if you did have more of a bullish lean look for price to continue making new highs and for RSI to also be making new relative highs in tandem. So now our volume profile in this case shows that around where we had these old high points from late May or so. That's the heavy trading area near about 207. So or 270. Excuse me. So not really too much else to to see in the shorter term based on our year of trading activity here, perhaps a small amount of additional activity around 300 or so. All right. Right now we're at three 2075 for Cloudflare. We are only about $32 off of that high that it hit yesterday. Tim, really appreciate you bringing us those three for your picks today. Tim