Today in Focus: VSXY

I've published my complete sell system as a free, standalone guide.

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Now, on to today's stocks in play.

Market Condition: Highly Speculative Environment

Commentary: Massive day in the markets yesterday. Lot’s of names accelerating in a parabolic fashion. Overnight we got the GOOG $80b Debt news. If GOOG needs to raise that much to fund their AI drive then the other hyperscalers (who aren’t as well equipped as GOOG) will probably need to do similar. This is almost like the FED Printing money for the market. It means the spend continues.

We also had Anthropic IPO filing (no date yet). I think this market can get a lot crazier but I’m following rules and not buying in extended names that I think I can be burned if it turns. Cautious today on new risk. Will follow rules on any trims. I’m still eyeing new sectors that money can rotate into. Rare Earths are looking really good on weekly along with other minerals such as Copper.

Additional note we have a Quantum Computing IPO on Friday. QNT is a genuine Quantum Computing company being spun out of Honeywell. I highly recommend you keep an eye on this one. I scan for upcoming and recent IPOs on StockAnalysis. Very useful for upcoming IPOs and the ability to filter out the SPACs. They also have nice fundamental detail on upcoming companies.

Upcoming Earnings:
After Hours: PANW, ULTA
Before Open: CNGT, MMED, M

In Play

VSXY: Strong Earnings Beat & Guidance Raise, Swing to Profitability

Key Metrics VSXY: Industry Group: N/A, Market Cap: 5.85B, Float: 67.89M, Short Interest: 19.11%, Days to Cover: 5.22, Sales Y/Y TTM: 5.22%, EPS Y/Y TTM: -4.06%, Earnings: Jun 02 BMO, Exchange: NASDAQ

Catalyst:

Victoria Secret (formerly VSCO) ticker change today to VSXY. In this market that alone is probably enough to go long! Beat on Revs (growing 15% YoY), Strong beat on EPS. Flip to GAAP Profitability. Strong improvement in Op Margins. Large Guidance raise and strong Operating Leverage. Very nice weekly chart. High Short interest.

Key Performance Indicator according StockAnalysis.com are Total Comp Sales Growth as is the case with most retailers. 13% YoY vs 5% last year. Nice acceleration.

Current Positions: ANY, DELL, CRWV, CMPS, APPS, SNOW, INOD, NVDA, AKAM, MSFT, IREN, APLD, BAND, TH, AAPL, GFS

Delayed Reaction Watchlist (TradingView Link)

_{Note: This is my methodology for identifying stocks in play. There are many valid approaches to trading catalysts—find the setups, timeframes, and risk parameters that align with your strategy.}