Weekly Plan 01.16.24
GM good morning traders-
Stocks go up, stocks go down.
Nikesh Arora is on CNBC right now, the PANW 0.00%↑ CEO. He's talking big stuff here. We also have David Russell. He's from TradeStation. He's like their guru on trading and stuff. He kind of does what Sam does. But he does it with TradeStation. He utilizes different methods, obviously, than me, but we're gonna be getting some people on here. I know Dan Ives is gonna be on here, probably sometime this week also. Okay, so with that, David, we're gonna give David a few minutes to talk about what he likes this week and what he likes this morning and what he sees happening in the market. And then I'll give you some of my comments, and then we'll get back to the normal newsletter. Okay, go ahead, David:
“Well, great. Well, it's great to be here everyone. So I thought this kind of interesting. Before I get the individual stock, I did see an article from this gentleman, Nick Timiraos, in the Wall Street Journal, saying that the Federal Reserve might get a little bit more dovish than people expect a little sooner than people expect in terms of eliminating quantitative easing, quantitative tightening, and moving back toward a little more QE. So that was kind of interesting, wanted to mention really quickly. But overall, in terms of individual stocks, I'm looking at, you know, entering, you're gonna have Dan Ives on. I know he's a Tesla bull, but for me, I think we're now at a spot here where we're seeing a pretty significant bearish situation forming in TSLA 0.00%↑ . And from my perspective right now, a move down to 200, and his name looks pretty, you know, the odds have a decent shot at it right now. That low from late October. Another name I'm looking at that really caught my eye today. So what I'm doing is I'm using the TradeStation platform to find stocks that trade a lot of options. Everything I'm talking about here today is going to be trading, you know, at least, you know, 30 or 40,000 options. I mean, Tesla trades two million a day, but SE 0.00%↑ , now a stock most you probably looked at in a long time, but this was an old Cathie Wood stock back during the COVID growth phase. This name is now facing a significant potential for breakdown. In my perspective, around 35, if you look at it, it's a level going back to March of 2020. It's been just sitting and hugging, and the pattern is pretty bearish on the chart when I look at it. So I wanted to emphasize SE for a break through that, that low that it had back in around the 20th of December. That one could extend because it's really consolidated.
F 0.00%↑ , in my perspective, everything we're seeing now of these auto stocks, they really hung their, you know, their hat on this electric vehicle business model. They put billions of dollars into it, and a lot of that now, as we see, is going the other way. Ford Motor, you know, look at it. It's a little bit of sensitive downside. As I look at this, I'm trying to figure out exactly what the confirmation should be. It might have a day or two of consolidation here, but from my perspective, there's a decent amount of space back down to 10 on Ford Motor.
Now, another one that I think is interesting is Warner Brothers Discovery or WBD 0.00%↑ . That's a little bit like Tesla, is a little bit chopping in terms of trying to hold around this area. But also, in my perspective, down to 9.5 on this one in the next week to two to three weeks is the potential.
And another one I think is interesting is Walgreen Boots or WBA 0.00%↑ . Because this is a stock that's a little long-term trouble. This business tried to rally kind of a dead cat bounce back in December, and now it's breaking lower again after a poor earnings report. And, you know, a name like this revisiting toward 20 seems to me like an interesting kind of potential to the upside. I think the name, if you don't watch, sometimes it works.
Can be interesting is Coca-Cola, KO 0.00%↑ . It's had this tight kind of consolidation around 60, and, you know, people might be looking for a move back up to 63 with earnings in the middle of February. Their last earnings report was good, and this is just in a kind of long-term range, you know, between like 52 and about 64. And it looks like it still has some potential back up to the top of that range.
And another one is CCJ 0.00%↑ . This is not as liquid of a name, 50,000 contracts a day. It's, um, I think it's one we have to watch. It's extended after this rally last week, but uranium is becoming, um, you know, a kind of new sort of focus area. And there's really one name only that people really can trade a lot of options on. So I did want to mention, you know, that kind of potential of CCJ to the, to the upside. There's a story that came out last week about a shortage of uranium coming from this Kazakhstan company. Kind of a, you know, a niche spot. But sometimes in a niche area, um, they come together. That is what people can really focus. So those are the names that are grabbing my attention today. Sam, thanks.”
David, hey, couple quick questions here. So, guys, David is with TradeStation. We've got a little deal with TradeStation to get you guys all cheaper commissions if you want to use them. Another thing, David. So, I, I don't believe in swing trading. We don't, we don't consider anything swing trading. We don't consider ourselves day traders. We are just traders. If we buy something and we have to hold it a week or two weeks or three weeks, that's great. If it goes up today and we make $5 on it and we sell it, we sell it. That's what it is. We're not buying something for tomorrow or the next day or the next day. So, when you give us these stocks, are you looking over the next day, next week, or are you more like us in, we think it's going to start moving from today so we could play this week or next week or what? What's your thought on that?
Most of these, I'd say, um, I see potential for in the next two to three weeks. I'd say in the next two weeks, really, the only one I would just say aside from that is too CCJ. It's extended, but I just feel like right now there's something happening in this uranium space and it has the potential to have a kind of chase in it. Right now, I don't see that one to me is extended in one way, but all the other ones look to me like they're kind of trying to fill a space. It's not so much. It's looking, in many ways, that these are names that have space in their ranges. I'm looking for them to fill back up into the range that they've had in the last six to eight months.
Perfect. Thank you. Fill down, fill down the range. The only big breakdown I see potentially is SE 0.00%↑ . That one is potential. Um, you know, significant breakdown, and I think, you know, if it breaks under that level from March of 2020, that's when, you know, there could be some extension to the downside because that's moved sideways for about six, eight months.
Okay. Thank you. Thank you. Okay, guys, let's get started with the regular call. Thank you, David. Appreciate it.
So what do we have today, guys? Here's what we got today. I actually agree with him on Tesla. Elon is saying that he may not bring all his products to Tesla. He may bring it to other companies. So, number on Tesla, 209. 201. If it breaks 201, you get 191. It can really, really dive. If Tesla's company, Tesla, their board says, "Elon, we're not going to give you this 25% plus," this thing can drop 20 in a day, guys, so just know that.
Other news event, Nvidia is running. It looks like it wants to pop 552, could take it way, way higher.
Goldman Sachs earnings not bad. It's up 388. It's a big number.
SMCI 0.00%↑ , there's a 3.57. Beast, write that down. If it gets to 357, 382, it'll go $30.
Wow. Interesting, interesting, interesting. Okay, so that's the news flow today. Cowboys, Cowboys, short them. Short the Cowboys. That's what we know. That's what we know.
Other things, tech are hitting highs.
SPX going lower.
Remember, this is options expiration week. That means every expiration week, you get one down day. You get a down day, and it's usually pretty good. So is that today, tomorrow? Don't know. We'll keep an eye on it. TNX is up today. That means rates are higher, so they're up. The dollar is higher. So both of those two things are negative for today.
BA 0.00%↑ , complete, complete, complete shit. We told you this. We told you this. All these people are, "Oh, this is minor. Nothing is minor." It's a, guys, the stock is the CEO. He's been for years and years. He's gonna come on either the next day or two, and he said, "Oh, this, we'll get over this in a day or two. It's not gonna happen." It doesn't happen.
NFLX 0.00%↑ , two things to keep an eye on. Netflix, uh, it hit 500 four times now, and it can't get through. Can't get through. Okay, now when news comes on their earnings, they're getting more customers, but are these customers leaving the $15.99 and moving to the nine? You have to understand that. So that's what we know. Coin, garbage too. They're not making any more money off of this.
MSTR 0.00%↑ going lower. So wait, wait, wait. Okay, uh, that's what we know from the news flow.
Let's get started here.
SPX up. Very straightforward. 4,800. 4,819. 4,826. Underneath 4,752. 4,730. And there's a big number at 4,700.
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