Three Stocks: Trump Media, First Solar, and Bitcoin

Trump Media

Shares of Trump Media and Technology Group (DJT) had their best trading day since March 25 following the attempted assassination of former President Trump.

Shares of the social media company surged after news of the failed attempt on former President Trump’s life over the weekend.  In addition, a U.S. District Judge dismissed the classified documents case against former President early on Monday morning.

The latest news has been seen to bolster the former President’s polling slightly, leading to investors buying shares of Trump Media as a potential proxy for the elections in November.

Shares had been trading around long-term technical support from their 200-day moving average for the last two weeks as volume had died down to some of its lowest levels in months.

That changed today with the stock seeing record volume on the move above its 50-day trendline.

Technical traders will want to eye that same 50-day moving average as a potential line of resistance as shares failed to close above it today.

That said, investors should expect that the week’s activities from the Republican National Convention will continue to fuel prices higher with a chance that the conclusion of the Convention may start a “sell the news” pullback.

Bitcoin

Bitcoin (BTC) spent its third day in a row moving higher notching gains of +10% along the way.

Just last week the cryptocurrency had broken through its key 200-day moving average as investors continued to sell, implying that risk premium in the market was on the decline.

But last week’s better-than-expected Consumer Price Index data has revived the “risk-on” trade as investors expect the Fed to start lowering interest rates as soon as September.

While not a stock, Bitcoin has been long associated with the “risk-on” trade as it represents a speculative investment in the market.

Today’s rally moved Bitcoin right to its 50-day moving average.  That trendline has been in a bearish trend since rolling over in the beginning of July.

Investors may want to pause for a day or two to make sure that the same 50-day moving average doesn’t shudder the current rally.  Bitcoin saw a similar rally in April that resulted in a short-term top as the technical pressure from its 50-day.

On the bullish side, a move above that 50-day – currently sitting at $64,000 – would clear the way for Bitcoin to continue its short-term move toward a price target of $67,500.

First Solar

Shares of First Solar (FSLR) dropped more than 8% today as the stock finished the day with heavier that average volume.

Investors focused selling on First Solar and other alternative energy companies on Monday as the Republican National Convention got underway.  Recent polls, while still showing a tight race, have started to favor Donald Trump’s campaign for reelection over President Biden.

investors feel that a Trump presidency is becoming more likely, which will be more focused on fossil fuels and less on green energy.

First Solar is one of the world’s largest solar manufacturers with a market capitalization of nearly $24 billion.

Monday’s selling takes the stock below $225 just a little over a week after the company found support at the same price.

Over the short-term, investors should be careful as the stock approaches it’s $200 price level.  This round-numbered support is where the stock made a breakout after its last earnings report.  In that report, the company beat earning per share and revenue estimates, sparking a 52% rally in just one month.

Last quarter, First Solar generated 44% year-over-year revenue growth, its best since April 2022.  Expectations this quarter are for the company to grow revenue by 31% this quarter and post earnings per share of $2.68.

That rally has since been reversed as the Trump campaign has garnered more strength.

First Solar is set to announce their next earnings results on July 30.