MPWR: High Volatility, High Opportunity
Updated
I don’t know much about MPWR, but I’ve been watching it closely. They have great business and their margins are solid. From April to August, the stock rocketed up 60%, only to drop spectacularly by 35% in a single month, giving up all its YTD gains.
This is a highly volatile stock, so I’m keeping my position small. But the risk-reward here is undeniable, and I’ve taken an entry at $576.
This is a highly volatile stock, so I’m keeping my position small. But the risk-reward here is undeniable, and I’ve taken an entry at $576.
Trade active
Even though we’re sitting near all-time highs in all indexes, and the whole world—including yours truly—is waiting for the Santa rally, I can’t help but scream: "WHAT THE HECK IS GOING ON WITH THE SEMICONDUCTOR STOCKS!??"
This year feels so different from the last. There are so few new long positions that have worked out, and honestly, it’s making me cautious. I’m starting to look at taking profits, even in a market that feels like it should be charging higher...
But hey, it’s still a bull market, and as they say, “Santa always comes… until he doesn’t.” Let’s see how this one plays out. 🎅🎄
Trade closed: target reached
Oh, hello MPWR post—I completely forgot to update you!
Friday, January 10, 2025: MPWR bounced into the $640 area but ended the week trading down to $585, just 15 points above where I originally posted before Christmas. The SOX showed very little strength last week, and MPWR, which held up well for a while, was one of the last to crack. I flipped my position and now have a small short from $637. Over the weekend, I planned my next move and realized I already have a clear plan in place:
If MPWR gaps down today into Friday’s lows and finds support, I’ll cover half.
If the stock shows strength, I may cover the entire position at a higher price.
If we blow through the lows, I’ll hold onto everything.
It’s a simple plan—now it’s all about execution. Let’s wait and see how it plays out.
P.S. If I forget to update you, please don’t take it personally. You’re incredibly volatile, even for someone like me who loves high-priced stocks. I’ll be waiting for you to build a solid base before considering my next move.
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