I have a few central themes for 2025. Yesterday we discussed one of them: vanity stocks. Today we discuss another one: Electric Vehicles and Rivian (NASDAQ:RIVN).
The ‘vanity’ trade is based on the diet drugs, and we have a few drug stocks we like. News today was that Biden administration is looking to expand coverage for the drugs through Medicare. That could be reversed by Trump of course, but I do not think it will be.
The Electric Vehicle theme is not so popular given the tariffs and that President-elect Trump is threatening to remove the $7500 tax credit for consumers buying an EV.
But the used car market in electric vehicles has picked up.
Today, it was announced that Rivian (RIVN) wins preliminary approval for $6.6 Billion US loan. Federal Funds would support construction of a Georgia plant, plans that were halted earlier in the year to save money.
Again, who knows what will happen next year, but for now, the stock ran up over 2% Tuesday after over a 10% move higher on Monday.
Let’s look at the weekly chart.
Yesterday, I introduced you to the weekly exponential moving average.
It was about Nu-Skin and how the price needed to clear that EMA after nearly 2 years trading below it.
Rivian looks a bit different.
Whereas NUS has the EMA well distanced from the 50-WMA (blue), the chart of Rivian is a bit different.
Please watch the podcast I did with Geoff Bysshe yesterday as we cover this extensively and tell you some great insider secrets!
Rivian first must clear the EMA. Ideally, we would like to see this clear on a weekly close.
Then, with the 50-WMA so close, we would like to see that clear as well. Note that in this chart I also show you the Leadership indicator. Rivian could outperform the benchmark. That too would be healthy for the stocks’ price.
Bottom line is that RIVN established a big base around $10.
Now, if the stock closes above 11.50, we think that is a great start.
Twitter: @marketminute
The author may have a position in mentioned securities at the time of publication. Any opinions expressed herein are solely those of the author and do not represent the views or opinions of any other person or entity.