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"Hesai Group" - "Nio" - " Xpeng" Hot Stocks In A Bad Market

Read my May 17 th blog about "Hesai". Back then it was $5.00 per share. Now this. Today it jumped 50%. What has happened. Here is the news. My focus back then was buying Calls on five dollar stocks. Now this. Last week Nio was the fourth most actively traded stock on the NYSE. It closed at $4.47 up .23 on the week. Here Tuesday is how it traded on the day. (I am showing a five day chart). Now this. "Xpeng". Now back to "Nio". Is it to late to get into it now? Not really, here is it's three year chart. What's really dangerous are the Call options on it that expire this Friday. I would have more faith in these ones. They expire in January. China is on fire when it comes to E.V. sales.
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Rethinking Setting Up A Deere Position One Week Out

A rough opening this morning.
A news release which I thought wasn't all that bad. Rising sales during a period of covid!
A further morning decline in a market which was holding it's own in the first hour of trading.
What to do? Why not buy a Call with one week to go? Here is what they cost at 10:13 a.m. and here is what the five day chart looks like as of 10:30 a.m.
But wait. The markets sometimes turn south in the afternoon and more importantly the trading volumes on Friday afternoons often dry up. Look at how the markets (the DJI is selling off). Might it drop more on the day? Why is there now a rush to play the upside? There isn't but look at Walmart and Netflix. They both have a similiar story.
We will soon be going into a Friday afternoon, which is not a period of time when the markets tend to rally. My interest in looking for a rebound is now waning. Here is how these Calls closed out the day. The problem now is that this particular series is now to far "out-of-the-money" to consider.
Here is the closing one day chart.
Fridays in general are not good times to be looking for reversals. These markets as of late are wicked. Deere lost $51.31 on the day. (This chart doesn't show the lower gap opening which was a big chunk of the loss on the day). Walmart also lost over $25.00 in one day a few days back. It's a market where everyone has lost money. Clear skies will be slow in coming back.

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