Ripe Underdog Stocks to BUY on the DIP ⚡️ Lighting Round Analysis

[00:00:00] Speaker 1: Well, the markets had a rough day today because of international markets, specifically Korea's stock market. You say, well, why did that happen? What's going on over there? Well, I'm not entirely sure. I couldn't get into all the economics. But what I can tell you is that the animal spirits of bullishness were raging out of control. If you look at how the market was positioned overall, folks were pretty much all going long, upwards to 95 percent or even 98 percent, people were positioned simply believing that it was going to continue to climb when it simply won't. Very few were taking any caution. And that led to a cocktail of crash today. And it poured over into the U.S. stock market because it gave people a little bit of a scare. Now, we know that in our market, the mag seven stocks have been pretty much trending down for quite a while, showing weakness. And we saw today that since the S&P 500 could not hold that level of 745, which I gave you yesterday, I said only if we hold 745 do we remain neutral and the opportunity for us to go higher remains on the table. We couldn't hold it yesterday. It fell all the way back to the level that I gave you. Now, here's something very interesting that institutional money did today that you don't want to ignore because it answers the question whether or not this is another dip worth buying. And that's that they immediately rushed and began to sell millions and millions of dollars worth of puts. Why would they do that? And no, I didn't say they went out and bought millions and millions of dollars worth of puts. They went out and sold them. They specifically sold the 720 to the 722 strike price, indicating that in their mind frame, there was very little chance that we were going to fall back to that level. They're hoping that those puts that they sold will expire worthless and they will be left holding those premium profits. So if you take a step back, that's actually pretty encouraging. This market is still bullish unless you counter it with the problem that the Korean market had is that they had no reason to be that bullish at this point. I want to remind you of the greater fool theory, which means that someone's going to have to come after you buy it from you. You think it's the right time to sell because it's already hit the top. They think it's going much higher and one of you is wrong. Well, in the case of Korea's market, the bulls were wrong and the bears were right. Let me know what you think. Welcome to Wall Street. This is the Stocks with Josh show. I'm going to do a quick lightning round of a handful of stocks that I've talked about recently just to give you a couple of thoughts on them. And then I'm going to give you some fresh technicals on a ripe underdog, a stock hitting recently. It's 52 week low again. There are some sad, high quality stocks out there that are producing very good earnings results that Wall Street simply just doesn't believe in right now. We're going to be talking about some of those. I have to shout out the friendly screener because yet again, they gave another small cap, low float stock that went up in this case, 234% from its open price. If you want to take advantage of my tools that I've built to find these type of hot stocks and not just scalp plays, but long-term investment trends, you can come join my pro trading community where you can live trade with me. You can get technicals, learn the charts and get access to my trading tools. Go to my website, which is the same name as my show, www.stockswithjosh.com. So let's get some stocks covered. We've got Nike. I have to highlight that they were downgraded today. I also want to tell you that it's finally back at the rinse and repeat price beneath $42 that I said that I wanted to go in and take risk again. Now, it's no fun buying a stock when it's down in the gutter, but if you're going to trade the range, which I did very successfully recently, this one is on high alert for another reversal moment and a retest of its highs seven. Salesforce CRM. I talked about this one recently. I had a stop loss on it. It got triggered. This one did not have a reversal moment. It fell a little bit lower in that video. I highlighted that previously back in 2021 and 2022, it had fallen down 59.8% and that that was the ultimate potential downturn percentage that I would be looking for. If it didn't move that particular week that I was watching it. Well, we hit that today and so it's become attractive again. If you're interested in underdogs, I think Salesforce might be one of the best picks. Let me know what you think about Salesforce. Don't dive into anything without a stop loss. Don't dive into anything without considering position size and your ability to buy more if it dips more. And then SpaceX talked about this yesterday. I said, you got to be careful if you go from being excessively bullish to now that it's pulled back excessively bearish. I said, watch particularly for price to recover above the nine EMA on the one hour timeframe. And I said, if it does that, then the risk actually is going to shift. You want to remember bulls make money, bears make money, but hogs get slaughtered. Who are the hogs? They're the bulls or bears that stayed in their position too long. You don't want to be short on SPCX if price is above the nine EMA. And as of this moment, while I'm making this video, it is above that Microsoft is looking ever more attractive. And I want to make a point about it, that if you bought it today, you're actually getting a better bang for your buck than you did at its lows in 2022. So I want to highlight that the theme of this video is that it's very hard to be a technical trader when the technicals are pointing to a potential bottom, but you'd have to go against your comfort level and buy red. Are you buying red on Microsoft? Let me know in the chat. Palantir, I'm not going to say a ton about it other than it hit its 52 week low again. And then Netflix. This is the one that was going to become the subject of our video today. It's been absolutely obliterated, breaking the $75 price point that should have been support cutting through it like a hot knife and butter. And it's come down to make a new 52 week low, but it's doing something on the RSI that I really don't think can be ignored. It has very clear bullish divergence. I know nobody wants to hear it on the weekly timeframe. And in addition to that, we've come back and we are hitting previous resistance. And so what once had been resistance, the saying is it becomes support. So even though it's got a new 52 week low, there are two very strong technical reasons that this might be a viable range. Let me take you into the chart and show you those specifics. All right. Between 75 and 65 was the previous all time high. This is where we've come back to. I believe that we are potentially one or two candles away from making a reversal moment back in 2022. When we got this oversold on the weekly RSI, you got to remember that that led to a massive recovery, a near 600% up move over the following three years. That's exactly where we're at right now. But the big difference is that we also have very strong bullish divergence on that weekly RSI time. Netflix is getting demolished right now. And the bears say that there's good reason for that to happen. They specifically point to the fact that they spend about a billion dollars with Amazon's AWS and that if the constraints of AI and memory are real, the costs could jump for them from 1 billion to 4 billion. That has not been priced in. It will significantly cut into their margins and cause big problems in earning events down the road. This is the reason why this has come back and made another 52 week low. But the bulls say, first of all, that hasn't happened yet. And in addition to that, they would point to the fact that this company is trading at an attractive 20 X forward earnings while growing earnings over 40% and generating nearly 30% net margins. They say that's a rare combination of growth and profitability. So what do you guys say? Does this look attractive to you right now? Are you going to take any more risk? I am going to take some risk on Netflix looking towards the future, even though it's very hard. That's simply gone through the same exact thing that we saw meta go through back in the day when the stock fell all the way to $80 and then went on to multiply over and over to the upside. Do you believe that this is potentially in a meta like situation that it's being underrated and undervalued and the bears have taken it too far? Are you a buyer? Or do you believe that they're underprepared, that their costs are going to spiral out of control, that they've got no good new shows, and that the stock has simply stopped growing? You tell me in the chat what you think is going to happen. There's your bottom line today. I will highlight that Marjorie Taylor Greene has jumped in on some Netflix and some now, and I'll be keeping an eye out for more insider buying or potential reversal signals. And if you simply want to be patient and wait for this thing to reclaim the 40 on the RSI, you're not going to catch the bottom, but you definitely would save yourself any unforeseen future pain. You want to make sure that you develop a trade strategy that's right for you and doesn't put too much of your hard-earned capital at risk. Thank you for watching the video. Let me know what you think of the stocks I talked about today. And if you want more information on the Friendly Screener, watch this video at the end. Peace and blessings. I'll see you soon. The market isn't hard because there aren't opportunities. It's hard because there are too many, and most people start their day simply wondering what to trade. That's why I built the Friendly Stock Screener. This is the chart goats process turned into a tool, so you have a clear starting point for the day. Stop scrolling through countless tickers. Quickly narrow down to the stocks that top traders are watching right now. It's called the Friendly Screener because it has a built-in scoring and grading system that even a brand new trader can follow, as well as educational content to learn about the market moves that dominate Wall Street. You spend less time searching, less time second guessing, and more time focused on the names that can actually move. Don't get stuck at the starting line and miss out on money making opportunities. Use the Friendly Stock Screener. Better stock picks, better focus, better trades.