Sofi appears to be breaking out

The stock market just gave us the green light on Sofi. I have seen this type of movie play out too many times. I'm no technical analysis expert and I don't know most of what the terms mean, but I can intuitively see patterns from seeing this type of movie play out so many times.

1. The stock market often times appears to treat individual stocks with a herd mindset. When a stock finally breaks out, everyone jumps on. You have seen this play out so many times. Hims, Robinhood, and even Apple's reversal fro m$170 to $230 which has no business trading at such valuation. It seems like a stock stays beaten down, until the stock market collectively decides “ok it's this stocks turn to have it's moment of glory”. I saw this happen last year with lyft, with google, with draftkings, with carvana, and this year with apple. And many more examples I cant remember off the top of my head.
2. Momentum and trend reversal is very real. This is the type of stock where you try to time the bottom, you miss the bottom and think it will fall again, and then it ends up never looking back. Again, I don't know much about technical analysis, but Sofi seems to have broke out of its slump. It has been setting off higher highs and lower lows.
3. Sofi has a odd price movement that 100% mimics and reacts to rate cut news. Go and see what happened to the stock when the market was expecting 5 rate cuts for 2024. Well, it seems like we have booked 1 rate cut for the year, and sofi rocketed up this last week. Momentum is a real phenomenon and usually when a stock breaks out, it doesn't end there. The story around sofi and other small cap stock have shifted.
4. To expand on point #3. The stock market follows themes. Every once in a while we get a shift in theme. Right now, the theme has shifted that there will be a rotation into small caps. and therefore the narrative around sofi has shifted. In the short term, market doesn't care about fundamentals or p/e ratios or any of that. Right now, Sofi is a beaten down stock and the narrative has shifted. Its a “relatively undervalued” stock that has taken a beat down and of course the market makers will run it up, and the WSB'ers will follow.
5. The market makers like to run up an under the radar stock and bring in all the WSB'ers. More options buying/selling. More profits. You see this theme over and over and over again. Rivian was at $20 last year. Then it crashed and burned. Then they pulled it back out of the grave and now everyone is talking about rivian again, when nothing fundamental has changed.

This stock may run up to $7.5 or $8 ahead of earnings in 2 weeks. And may result in $9 or $10 with a surprise beat or guidance raise. They already raised full year guidance last earnings call, but somehow the market didn't like that they lowered guidance for this specific quarter. Makes no sense.

Disclosure: I used to own sofi, until I sold for a $15k loss two months ago due to opportunity cost. I always knew it would bounce back, and with dumb luck I more than made up for it. However, I may consider buying call options tomorrow, since the wash out period has ended and I can claim the loss on my taxes for the previous loss, and I can re-enter the stock again.