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The recent selloff has created a window for traders who can ride a “Red to Green” concept, but not investors that depend on a steady grind higher with minimal position management post-entry. I’ll use Palantir Technologies Inc. (PLTR) to illustrate things, explains Larry Cheung, founder of Letters from Larry.

Due to the fluid nature of markets, inside Discord where I share execution, we saw an opportunistic structure:

We started a Palantir stock position at $152. I perceive this to be in between the Bear and Base DCF case. Structurally it saw a bullish hammer on the daily chart. It saw $159 in the Wednesday evening after-hours session – or +$7/share within a day.

Palantir Technologies Inc. (PLTR) Stock Chart

Data by YCharts

Now this is where I must introduce perspective. The entries that I give are objective. They’re based on structure - on DCF. However, the process to sell/exit - that is subjective.

In a previous email note, I gave an example of how to manage via mechanical or discretionary frameworks. At the end of the day though, the exit is subjective because that is directly linked to a person’s personal goals.

So, while I gave a $170 year-end target on Palantir Technologies this week, that means that’s my broader form of thinking and that’s what I would like to see. If you are happy with capturing 50% of the intended forecasted move (from $152-$170) in around 24 hours, which I’ve budgeted months to take place, then by all means, capture it and wait for my next idea.

About the Author

Larry Cheung, CFA is the founder of a leading Substack publication named Letters of Larry: U.S. and China Investment Strategy. He is also a Youtube creator with over 100,000+ followers and has a research focus on US and China macroeconomics, financial markets, and company-specific fundamental analysis.

As a chartered financial analyst, he is passionate about helping his followers grow their wealth through long-term investing and thoughtful tactical trading. He can be found as @LarryCheungCFA on Twitter, Instagram, Youtube, and Substack.

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