If you moved to cash this month, you’ve got a lot of company.
Investors piled almost $118 billion into cash the week of the midterms. That’s the most they’ve moved into money market funds in one week since May.
I get why. Stocks sold off hard after the midterms.
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Sooner or later that cash goes somewhere. But gold and silver are well off their highs, and so is crypto. And government bonds don’t look attractive to me either.
There’s one stock I want to put my own money into…
The company behind it just reported revenue up 571% from a year ago. It expects next year’s revenue to be about 4x this year’s.
Gold can’t grow like that, and neither can a bond.
The stock is down more than 30% in a month.
It also moves fast when buyers show up. It gained 15% in one day this week.
I want to own it when they come back.
But only at the right price…
Here’s my game plan.
The stock I want to own is Nebius Group N.V. (NASDAQ: NBIS).
Nebius rents out the computing power that AI companies run on. On Thursday morning it reported revenue up 571% from a year earlier.
It also told investors it expects next year’s revenue to be about 4x this year’s.
That growth is why I want to own it.
The stock got hit anyway. Nebius said this year’s revenue will come in at the low end of its forecast. Some of the computing capacity it was counting on won’t be ready until the first half of 2027, though the contracts for that capacity are still in place. It also plans to spend more this year than it had told investors.
Nebius opened Thursday more than 22% below Wednesday’s close.
Even after a bounce into the close, Nebius is down about 32% from where it was a month ago.
So the stock I want is a lot cheaper than it was.
But a lower price isn’t a reason for me to buy at the open. A lot of my biggest losses have come from guessing what a stock will do at the open instead of waiting for it to show me.
So I wait, and I watch two price areas.
The lower area is $120 to $125. That’s where Nebius stopped falling last week.
It closed in that area on November 5, the worst day of the selloff. The next day it dipped back into it and buyers stepped in.
Thursday’s open put Nebius just under that area. By the close it had climbed back above it, up 7% from the open. Now I need to see it hold.
The higher area is $135 to $140. Nebius fell out of that area last week and it’s had trouble staying above it since.
Nebius got over that area twice this week and lost it both times.
- Monday it gained 9% and closed just above the area.
- Tuesday it fell 5% and closed back under it.
- Wednesday it gained 15% and closed well above it.
- Thursday it fell 17% and closed back under it.
So one day over $140 isn’t enough for me. I want to see Nebius get back above that area and stay there.
If it holds the lower area and gets back over the higher one, that’s the reversal I’ve been waiting for. I’d start with a small position and I’d know my exit before I buy.
I’d only add once Nebius does what I expected. I want my full size in a trade that’s already working.
If it can’t hold $120 to $125, I don’t have a bottom. I’m not interested in adding to a stock that’s still falling, no matter how fast the revenue is growing.
Today I’m watching whether Nebius can hold that lower area.
Stay sharp,
Jack Kellogg
*Past performance does not indicate future results