The Big 3: APPS, SNOW, NET

get your podcasts. Welcome back to trading 360. I'm Marley Kayden. It's time for the big three. We've got three stocks for you. Rick Duquette taking us through three charts for you here to take us through the picks today. Tim Bowen Chief Technical trainer@stockstotrade.com. Great to have you on Tim. We got some jobs. Data this morning didn't come in at all in line with expectations, but it doesn't seem to stop the earnings train from carrying the markets higher. So how are you looking at the price action we're seeing this week. Well obviously price action very bullish. You know I do want to say this. I always appreciate coming on after Patrick Love his read on the market. Love his mentality approach to it. I mean it's really I know sometimes my opening statements can get a little long. You know I really agree with him across the board. Just a just a great read and, you know, kind of, you know, the corny joke I use is, and I've used this many times is, you know, the market over this really since 2020 for the election. It's just kind of that bad hair don't care market. You know, we just look at the overall trend and sure, we were sideways for a lot of the summer. Got the big breakout, you know, really just recently. But to me the trend has been intact. I mean, sideways doesn't change the trend. I just look at all of the things to be bullish about. You know again jobs number not great. Market up big. Okay. Trade that price action as you mentioned. Take advantage of that. And for right now, when you look at all that's going on in the technology world, which is, you know, 99% of the stocks I trade and 99% of the stocks I bring, you know, as trading ideas. You know, you look at, you know, the announcement by Tesla of that tariff facility. I mean, it's like, it's like literally the future is is upon us. Some of the stuff I talk about all the time just came across that, you know, Nvidia and and Baba endorsing Quinn on their DGX Sparc local models. I mean, there's just so much opportunity out there. And at this point, until the trend breaks, I continue to be still very bullish. And there's so many great trading opportunities out there. As long as you respect the trends and respect the charts, which Rick is the master at. All right. So let's get to your first pick then. I have to confess, Tim, you threw me for a little bit of a loop before my coffee. When I was reading through this, I was sure you had a typo. I saw the ticker apps and I thought, oh, we met app. Love it. I type in apps you didn't. Then I felt like I was doing overlooked stocks because I have to confess, I don't know anything about digital turbine. I do now, but they are not at all the company I thought they would be either based on their name. So first, I guess, tell me how you found them, because they really flew under the radar for me. For a company that's up 200% in the last 52 weeks. Yeah. So this is a, you know, an all the ideas today are a little bit different in that, you know, kind of looking at bigger picture. And what caught my eye on apps was, you know, the breakout, but it's particularly the five year chart. Now I remember this stock was a darling back during the Covid market. Went on a massive run back then. And then really basically from, you know, 2023 to 2026 was just kind of sideways, didn't do a whole lot. And then we finally got that big breakout. And, you know, this is one of those ones where again, using the bigger picture theme, we're, you know, what I'm looking for here is not saying it's going to go all the way back to 100 like it did back in the Covid market. Be smart, but just a low priced stock that's, you know, in this tech sector that is finally broken out of those doldrums. And I think that that's going to attract a lot of buyers from a technical standpoint to continue to kind of not, again, not match that move from the Covid market, but maybe replicate that type of spike over the coming days and weeks, etc. All right, so let's dive into Digital Turbine and tell me what you see in their technical setup. You can see some of the breakout here that Tim was just talking about, right? So the first thing that I would probably call attention to would be to backtrack a little bit. 828 was a notable old high that we saw here. And to illustrate the idea that old resistance can become new support, that high water mark then became what was a pretty consistent floor. So that's where we seem to have formed our base area from this point here. We did have a gap up here on earnings. It began at 973. It opened up around 12, but we did make a slight intraday low beyond that near 1176. So that's why I have that area highlighted. Meanwhile the old highs came in at 1360. We seem pretty comfortably above those still at this point. The new highs we established today 1534 stand out as the next area to be. So now we can also see when we assess our moving average picture. In this case, our five day EMA is lining up fairly closely with our short term trend line and white here that comes in near 1247. If we were to test that area, that could be a potential breakdown point. 21 day EMA and teal comes in near 1023. A good bit away at this point here, but it will start to catch up in the coming days as price kind of recalibrates itself. With this moving average, RSI is remaining in the overbought area 7430, typically a sign of strength in a trending market. To see this entry above that threshold. Finally, our volume profile study shows that we have a small node here at these elevated levels between about 1270 to 1360, a bit of a gulf in our trading activity. And then a more significant node here between about 8 to 10 or so. All right. Right now digital turbine at 1421 it is down about 4/10 of a percent so far today. But as you highlighted there, Tim, a pretty affordable stock on this one at just $14 even with those moves to the upside. I love what you said here about software because you've got a second software pick coming up here for pick two. But you you said software at this point seems to be like a Mark Twain play. The rumors of my death have been greatly exaggerated. I love that as we're in the sort of wake of the massacre, SaaS apocalypse or whatever you'd like to call it. And, and we're now looking at how everything shook out. So how are you looking at snowflake in that broader conversation? Yeah. You know, again, you know, listen, there was a lot of, you know, it kind of reminds me of when we were together back last fall when, you know, the AI bubble. And I'm like, I don't see a bubble. You know, I, I always like to say, you know, a bubble is a bull market that you're not participating in. Everyone calls it a bubble as they go higher and higher. And you go back to last fall and these AI stocks and a lot like you said that with the SaaS apocalypse, okay, so with snow, you know, really going again, that five year chart, you know, going back to big runs back 20, 2021, the previous breakout level was right there about 278. Obviously, we're way above that. But you look at this stock over the last couple of weeks trending nicely. I really like that they're going hard into the a genetic AI. You know again I know this is my thing that I talk about every week, but I use my agent daily. And you know, they've kind of got a clogged code type product. And I just use these products daily. Love them daily, love this chart. And, you know, kind of a mix of, you know, something like apps, like you said, very low priced speculative snowflake is one of those stocks a little bit higher priced, a little bit lower risk profile, but similar ideas. All right. Rick. So as we look over snowflake, a different chart here, more expensive and significant move to the upside as well. Though I can see this channel you've got. So walk me through the technicals here that you're seeing for snowflake. Oftentimes you would begin drawing a trend line after the gap to the upside. It kind of coincidentally seems to match up here with this shorter term trend line. It follows along the lows that we established later. So in this case I just extended it. It is still a duplicate parallel line going across these highs to give us our channel type shape. We do seem to be testing to the upside though. Now just because it's a channel doesn't mean it's going to stop there. We certainly could see further breakout activity here, but this can be a way to gauge where you might start to find a potential boundary to assess some horizontal levels. 331 40 is where we have our highs so far here. Then here around 322, our first green line is where we topped out several sessions in a row, a relative low here near 292 and a repeated floor here near 253. So those are some levels that stand out at a glance on this chart. Next, when we think about the moving average picture we have crossed above our five day EMA once more. Yesterday we had a very brief dip below it, but it recovered quite quickly here. That one comes in near 315 or so right now. So that would be the first of our moving averages to consider. 21 day EMA and teal 288 or so lines up pretty closely with our trend line. RSI remains overbought, but perhaps drifting a bit beyond our green trend line here. The day is still young. We could still easily recover back above that level, but just something to note that being in the overbought level at the same time as a trend line being broken, would be a little bit of a question mark, a little bit of a mixed signal there. But for now, things still remain fairly pointing toward the upside here. Finally, volume profile shows that the most significant node we have anywhere near our current activity 260 to 270. You can see this spike in our blue histogram lining up with those old highs that we saw from about, you know, October or so. And that node is considerably below where we're trading right now. We're at 32379. We are up almost 2% on the session. Two for snowflake today. Now we're staying in software here. We're looking at another software name. This one's got some pretty serious momentum behind it over the last couple of months. We're looking at CrowdStrike a higher on the session today. How are you looking at CrowdStrike Tim. So you know upcoming earnings. You know a couple weeks from now, you know this is a stock that, you know, I've loved for a long time. I still remember funny enough, I walking into I was flying out of LaGuardia the day of the quote unquote hack. It was basically a bug, but it was always, I'll always remember walking into LaGuardia and every single screen in the entire airport was a blue screen of death and like rebooting. And I'm like, okay, I'm about to get on a plane right now. But I remember, you know, that day actually, you know, talking to people, I'm like, listen, stocks selling off. It's, you know, like it's a great company. This is a great dip opportunity. And if you look back to the summer of 2024, where this stock, you know, pulled back to and then took off from, there was it would be a great, you know, multi year hold. But, you know, another momentum play, another kind of not loosely, but kind of SaaS apocalypse play. You know, they're more security. But when I saw that big breakout and with upcoming earnings, I just really think that this has solid potential to continue to trend up into earnings. And then, you know, as long as you're properly positioned, you know, see what earnings plays out could be, get a good gap up out of that as well. If they match a lot of the earnings announcements we've been seeing over the last couple of weeks. All right. So as we look at CrowdStrike we're up near these highs right now also reporting on the same day as Nvidia. And we've been talking about a lot. If the timing of your report matters and who you're reporting alongside, it's important to note it's the same day as Nvidia. What are you seeing in the technical setup and the potential to go even higher from here. Yes. As Tim said, stock trading is very much a what have you done for me lately type of field for the good and the bad. In this case, it's been a very notable recovery. That very disastrous day as a, you know, pretty much forgotten in the eyes of investors at this point, it seems like. So now we can say that we had this boundary line here, not really a super strong trend line. A trend line would ideally connect three or more points here, but a boundary that matches up decently with our recent highs that we saw. So this is kind of what I'm trying to illustrate here, just encompassing the broadest section of price activity that I can, a solid or swift upward move here. Our steep blue trend line has been broken. Even though we are recovering, we have not managed to retest this level here near about 218 or 219. That represented our old high point. Relative lows came in here near 202 yesterday. Another low point here. 174 another low here near 154. So when we next assess our moving average picture five day EMA in dark blue. 20641 is the nearest one to our current activity. Everything seems to be still diverging apart from each other. The faster ones are on top of the slower ones in this case as well. We had a longer term downward sloping trend line on the RSI that does seem to be on the verge of being broken. If we cross above that trend line, if price keeps making new highs, and if we push into the overbought area on the RSI, that would be a pretty interesting bullish setup there to consider for traders. When we also look at our volume profile here. Finally, the most close node to where we are now 185 to 193 stands out. Then another one of very similar size 165 to 174. So those could be some areas where you might see a supportive activity. If we do start to falter after earnings. And we right now are just only about $6 off of those highs that you were highlighting. We're at 21156 with a 2% move to the upside right now. Tim, want to thank you for being with us for big three today. Always great having you out with on a