Markets pulled back late last week, finally, after a long bull run. Going into this week, I expect more of the same before a possible couple of final good week until we see the major summer cool off. This isn't the best time to be getting into new positions and traders should be more defensive going forward. With most everything close to all time highs, my strategy of buying on support won't provide a lot of entries for the time being. Pulling back through the next couple of months will though.
Tesla is now offering drivers an FSD subscription, charging $199 a month instead of a flat $10,000 fee. That could open a big, steady revenue stream for the EV giant. In China, Tesla also introduced the Standard Range Model Y and it is a huge hit. In days of being released, it was fully booked until October. I still like $TSLA up to $900-$1200.
Last week was another good week of trading, although some positions that I have are a little behind. Next week should provide some catch up. If you feel the need to get into new positions, make them small for now. We will have a better opportunity in a couple months.
Positions Carried Over From Last Week
$NAIL -8.8% (Ongoing Swing Trade)
$BIDU -36% (Calls)
$COIN -8.6% (Shares)
$TASK -2% (Shares)
$RIG -30% (Calls)
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The $DG Alert put triggered late Friday. I will be looking for an entry and posting if I make it when the markets are open this week.
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New Alerts Added
I'm adjusting the ROKU alert down to the 180 MA and will be waiting on a pull back. Still most analysts that I see are bullish on ROKU, but seeing how we are likely to pull back market wide I can be more patient. Once it does hit my entry zone, I'm interested in $400 EOY calls.
I really like $UPS for two major reasons. One, there is a major increase in demand around the world. Two, going into the holiday season should naturally see the major shipping providers to see an increase in revenue. I like $210 monthly calls here, but prefer to buy at support and have an alert set.
$EBON is probably the stock I feel most confident in a long term put. For those of you that don't know, they are a Chinese manufacturer of Cryptocurrency mining equipment, such as ASIC Bitcoin hardware. I've personally been to their factory near Shanghai, and was shocked at how dirty it was. Being a computer/asic chip maker, one would expect the factory floor to be in better shape. That being said, I've had luck shorting this stock before. I think it is a sinking ship. Ride puts into the ground here.
Oil got hit last week, and CVX sold off Thursday and Friday. Overall I am bullish on Chevron, however I will be adjusting the alert trigger down to a lower support that dates back to the lowest low of Covid. There is also a big volume shelf here. Let's see if we can pick up some $100 calls a couple months out in expiration at this support.
$PYPL has just come off of its resistance and is heading down. I might be a little late to the PYPL put party, but if it does test this major resistance again I've got my alert ready and will right down puts to the 50MA. Make note that PYPL usually has bad months in August and September. I'm thinking around $280p, couple months out.
$SQ, another mobile payment provider, could really change the way we think of banking, transactions, and QR paying. I personally think that Paypal is ahead in these regards, but Square is up and coming for sure. Having lived in China for a decade and have witnessed the rise of mobile QR payment apps, such as Alipay and Wechat, I can tell you they are great. I don't carry a wallet anymore. I believe that SQ will eventually offer other products such as insurance, Investments and there is a lot of opportunity for advertisements and data collection. The price of this stock is approaching the 180 and 50MA. If you think like I do, you might want to take this chance to pick up some LEAPS on SQ.
I've set an alert for $EMKR pulling back all the way to the 180MA and then settling into LEAPS around a $10 strike. EMCORE Corporation, together with its subsidiaries, provides advanced mixed-signal optics products in the United States, Canada, Asia, Europe, and internationally.
$DG, Dollar General usually does well in August and September while other indices, tech and growth are pulling back. Overall, I like this play for transitioning out of some tech stocks and setting up for a winter run. $DG has excellent management and has done a really good job with expanding its business in rural America.
However in the short term it looks as if we can score on puts when the price reaches resistance. It would be ideal if we can ride them back down to the 20/50MA, or even lower support.
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