Before I talk about Upstart, let’s talk about the overall market today. All indexes, as you see, had very nice gains again today. But once again, volume was absent, which is a concern. The market has been more stable than I anticipated and that’s because of the tremendous amount of cash on the sidelines. The 6 trillion dollars in money market mutual funds. Thus far many have been fooled, including myself. Historically, the seasonality we are currently in creates selling. Presidential elections create uncertainty. Institutions have been hesitant but they are picking away. That is the reason for the low volume. But why does the rally continue? They (institutions) are not sellers. The market remains in a fragile upward trend until the election is decided.
Upstart
Upstart my number pick I recommended back in July has now doubled, closing above 53 dollars a share. The stock broke out of a technical base powered by upside volume. The stock traded over 20 million shares. More than double its average daily volume of approximately 8 million. The Wall Street analyst who moved off his sell position stated the following metrics for his reasoning, “improving credit quality metrics and lower interest rates, to name a few. You would have thought he read my report to Seeking Alpha that was rejected because of grammatical errors. (LOL but seriously!) Anyway, the move was powerful! There is very little resistance between $48 and $70-$72. IF MARKET CONDITIONS REMAIN FAVORABLE, it should hit that level in a short period of time. Expect more analysts to change their tune on Upstart after their earnings call in early November. The large short position will help power this stock forward.