There’s one hot sector which is so speculative that it makes AI investing look like the most prudent and conservative decision since T-Bills, and the name of it is………
Let’s assume this thing has legs, though. Two example charts are below, and as a chartist, I like one more than the other.
The first one is the fittingly-named Quantum Computing Inc, whose symbol is QUBT.
The second is D-Wave Systems, symbol QBTS.
These two stocks have plenty in common:
- Leading figures in a very small, very hot sector;
- Massively higher volume the past few months compared to all prior history;
- Price gains of many hundreds of percent this year
There’s an important distinction, however. QUBT seems to be bumping up against an important resistance level (the red dashed line) and is beneath, albeit slightly, its lifetime high. QBTS, on the other hand, is at lifetime highs, has managed to clear its resistance (whose color I’ve changed to green) which it successfully tested as support recently. In other words, the horizontal has morphed from resistance to support, and it seems to be at the cusp of pushing past a weaker resistance level right now.
Simply stated, as a chartist, I like QBTS a lot more than QUBT.
