Not ready to believe this bear market is over?

Yeah, me neither.

But I can’t ignore the facts. The S&P 500 and the Nasdaq are positive on the year. And speculative growth names are raging.

My bearish bias can’t stand it – big base breakouts, new all-time highs, and those quantum stocks!

For the record, I still believe international equities will outperform the U.S. in the coming years, but what does that have to do with this week’s rally? Nothing.

The S&P 500 has taken out its March pivot highs, and a handful of speculative growth stocks are hitting record highs. It’s bananas.

Unfortunately, you and I do not have the luxury of choosing what’s on the menu. If the market is serving bananas…

Let’s join the madness with a handful of stocks fit for this rally. But first… 

ARKK - The Home of Speculative Growth Stocks

I always like to know where I’m wrong so I can cut my losses short. This means tracking critical levels for the stocks I’m trading, plus the overall market. And there’s no better index to track these high-flying markets than Cathie Wood’s ARK Innovation ETF (ARKK).

It’s full of speculative growth A-listers such as Palantir, Roblox, and Shopify, to name just a few. It’s also an excellent way to trade this rally without taking on the company-specific risk of just one ticker.

Regardless of whether you choose to trade ARKK, you must track the 54 level. Here’s why…

Since the ETF acts as a small-cap growth stock index, speculative trades will likely work if ARKK is trading above those former highs at approximately $54 (highlighted with red arrows).

It doesn’t matter that none of the names I’m about to mention belong to the ARKK ETF. Risk-on is risk-on, especially following the steep selloff.

However, Auntie Cathie’s Speculative Sign Post works in both directions.

If her flagship ETF is undercutting $50, the next handful of tickers could spoil in an instant. I’m talking about open-the-kitchen-window-and-turn-on-the-fan toxic!

Something to keep in mind as you position size and manage risk.

So far, ARKK is ripping above $57 and closing in on $58.

Let’s go…

UBER Breaking Out to New Highs

Nothing says bull market like base breakouts to new all-time highs.

Here you have mega-cap in waiting – Uber Technologies Inc. (UBER) – doing just that…

The sky’s the limit!

Buying similar breakouts with no price memory overhead has served my portfolio well over the years.

And if we’re dealing with an authentic speculative growth renaissance, I bet UBER makes that hundred-dollar roll to 110. (A hundred-dollar roll is when a stock continues to rally another ten bucks after hitting one hundred for the first time.)

Perhaps the self-driving car narrative is steering the rally. I don’t know. The car theme is undoubtedly hot, and buyers like UBER. It works for me!

(We’ll revisit the car theme in just a moment.)

Another hot stock that could follow UBER’s lead is ASTS SpaceMobile, Inc. (ASTS), an $8.69 billion cellular network for space.

I don’t know what this company actually does or whether it will be successful, but the stock’s returns are out of this world. (Please excuse the dad jokes.)

It posted a 1,675% gain from May to August of last year and has held onto the bulk of those gains — a key marker for the type of names you want to be buying.

You want stocks that have weathered the bear market the best.

They’ll likely hit new all-time highs first (UBER). Plus, it’s always prudent to practice buying the strongest names regardless of the market environment.

Quantum Stocks Aren’t Dead!

Quantum stocks are among the most resilient names out there….

D-Wave Quantum, Inc. (QBTS) went from one to eleven bucks during the last two months of 2024. It now touts an impressive $3 billion market cap. and is performing its best UBER impersonation…

A decisive close above 11.50 kicks off the next leg higher and arun of new all-time highs.

You’ll also want to keep Quantum Computing, Inc. (QUBT) on your radar. It soared from 75 cents in mid-October to 27 dollars a week before Christmas. Apparently, Santa came early for those lucky traders holding QUBT.

Of course, explosive 1000x rallies aren’t sustainable. QUBT corrected over 80% by the middle of March.

But don’t count this quantum stock out. Quantum Computing shares are rebounding, and if QBTS is any indication of things to come for the broader industry group, QUBT could be on the verge of another mind-bending rally.

(Quantum Computing, Inc. reports earnings this Thursday after the close.)

For all the attention quantum stocks have rightfully attracted, no coverage of the U.S. speculative growth trade is complete without mentioning flying cars…

Even “Flying Car” Stocks Are Ripping!

I never imagined the possibility of flying cars in my lifetime, and it won’t bother me one bit if I don’t live to see it.

Flying-car stocks trading on the NYSE are enough for me.

Check out Joby Aviation, Inc. (JOBY)...

The company began operations in 2009, with the goal of creating commercial passenger vehicles that can take off and land vertically. Hopefully, they make it happen.

Not to be a buzz kill, but I’m not concerned with their success. (Perhaps that’s just my deep-seated bearish bias talking.)

Of course, flying cars would be cool. As a trader, though, JOBY solely represents an interesting name with a potential hype cycle that could send it squeezing 50%-plus in a few weeks. Nothing more.

Approach the rest of your Banana Portfolio with the same attitude, and you might forget all about last month’s bear market by Memorial Day.