This Week's Watchlist Is a Little Different

August 05, 2024 | [Read Online]( This Week’s Watchlist Is a Little Different Hello, everyone, Blake Young with you on this historic Monday - historic in terms of the volatility we’re seeing in this big downturn. The big indexes are down anywhere from 2.7% to 3.2% as I write this. But, contrary to what you might think - and contrary to what’s certainly being said in the financial media today - times like this can be rich in opportunities. So I’m going to go a step beyond our usual Weekly Watchlist and look at what I think could be great trades. Two are bearish trades fading a gap fill at the moment, both are in the semiconductor sector. I’m talking about On Semiconductor (ON) and Micron Technology (MU). Both of these names have been selling off alongside Nvdia (NVDA) and the tech sector. Today, however, they’ve tried to stage a rally in all the chaos. Here’s what happened next… Three Stocks in Play Right Now Bargain-starved investors may feel these stocks have been discounted enough, but in my view, they’re in a classic “dead cat bounce.” Both these stocks fell back to longer term support areas… then “bounced the gap.” Over the past two sessions, price action has filled and failed to continue higher. These gap failures probably represent traders’ ditch efforts to get out of the positions at a smaller loss. The downtrend here could continue. I’m expecting ON to roll over below $72 and fall to $60 in the next two weeks. This would be a $12 gain that you can protect for between $2 and $3 with a trade - that would be a 5:1 bet in a bearish (emphasis on “ish”) market. MU is in a similar boat, but the gap fill is retesting old support as the new resistance. The opportunity here is a fall to $80 in the next two weeks and possibly all the way to $60 by the end of September. I’d be comfortable with an $8 stop loss for a $20 target. Incredibly, it’s not all bearish bets here - one of the few bullish stocks I see is a favorite of mine and Don’s: Costco (COST). COST has gapped down to long-term support and failed to break out. The support near $800 is more significant than, say, ONs chart, because COST has traded for three weeks at or near $800. It’s also re-tested this level after its last earnings report. Costco’s next quarterly report is at the end of September, which provides ample time for a bounce and return to its previous consolidation near $840. Although this is a mere 5% move, it’s a $40 potential turn with as little as $5 at risk. I’d also consider a short put at the $800 strike with an August 30 expiration date. You could be paid $23 for your willingness to own COST at $800! I’ll be in touch with my paid-up Deep Currents subscribers with a detailed list of my recommendations, but I feel like everyone should know about these moves. These are historic times. Blake Young The Ultimate Super-Trader’s Bundle Unlock a powerful arsenal of proven, powerful trading systems, Masterclasses, and tools worth more than $15,000… now available for less than $300. [This offer is going away soon…]( [fb]( [tw]( [ig]( Disclaimer: Neither TheoTrade or any of its officers, directors, employees, other personnel, representatives, agents or independent contractors is, in such capacities, a licensed financial adviser, registered investment adviser, registered broker-dealer or FINRA|SIPC|NFA-member firm. TheoTrade does not provide investment or financial advice or make investment recommendations. TheoTrade is not in the business of transacting trades, nor does TheoTrade agree to direct your brokerage accounts or give trading advice tailored to your particular situation. Nothing contained in our content constitutes a solicitation, recommendation, promotion, or endorsement of any particular security, other investment product, transaction or [investment.T]([rading]( Futures, Options on Futures, and retail off-exchange foreign currency transactions involves substantial risk of loss and is not suitable for all investors. You should carefully consider whether trading is suitable for you in light of your circumstances, knowledge, and financial resources. You may lose all or more of your initial investment. Opinions, market data, and recommendations are subject to change at any time. Past Performance is not necessarily indicative of future results. TheoTrade 16427 N Scottsdale Rd Suite # 410 Scottsdale, Arizona 85254 United States 1 (800) 256-8876 Update your email preferences or unsubscribe [here]( © 2024 Blake's Retirement Rocket PO Box 24790 Christiansted, Virgin Islands 00824, Virgin Islands, U.S. [Terms of Service](