5 Stocks to Watch Like $SPY
Hope you guys had a good weekend. It’s time to digest the Jerome Powell’s Jackson Hole speech about doing whatever it takes to fight inflation (even if it causes pain in the short run).
The 10+ year bull market relied on low interest rates and now the party is officially over. Friday was a brutal day and investors sold off stocks like crazy.
Can you believe the US dollar is at a 20 year high? There is a ton of fear surrounding the markets so now is a good time to build a watchlist of your favorite stocks to buy on the dip.
We also have a decent week of earnings reports so check out the image below
5 Stocks to Watch for Monday August 29th 2022
SPDR S&P 500 ETF Trust (SPY)
Tesla (TSLA)
Coinbase (COIN)
AMC Theatres (AMC)
Best Buy (BBY)
SPDR S&P 500 ETF Trust (SPY)
When stocks crash, I follow the SPY closely to see if I can predict a potential bottom. Right now, things aren’t looking good and we’ve already given up all of August’s mini bull market gains.
I wouldn’t be surprised if the S&P 500 and NASDAQ dipped below the June 2022 market bottom ($365 was the SPY’s lowest point in June). Powell doesn’t care about the markets crashing. He will keep interest rates high until inflation slows down. I’ll probably buy some SPY puts and hope for the best.
Tesla (TSLA)
Elon Musk tweeted he’s too fat and wants to try fasting to lose weight. No surprise here.
Whenever markets are crashing, I buy TSLA puts to make some easy gains. TSLA’s P/E ratio is still over 100 despite entering a clear bear market. I don’t short stocks but you can short Tesla stock on Webull if you want.
Coinbase
Bitcoin crashed below $20,000 over the weekend and I expect crypto stocks like Coinbase to take a beaten. My prediction is Bitcoin will bottom around December or January so be prepared for more downside over the next few months. The worst is behind us in terms of crypto and fear is everywhere. Now is the time to take a look at crypto stocks because prices are getting cheap. COIN stock is under $70 again.
AMC Theatres (AMC)
The APE dividend looks like a disaster so far and AMC stock continues to tumble. Meme stocks are not a good place to invest right now. I got burned by BBBY and was contacted by an attorney who wants to file a class action suit. I’ll keep you updated.
Best Buy (BBY)
Best Buy reports earnings before Tuesday’s market open. I’m guessing earnings will not be god since most retailers underperformed in Q2. This could be a good put buying opportunity.
What’s Next?
I’m going to watch my portfolio shrink in value and hope my put plays help offset my losses. If you are thinking about selling your stocks then now isn’t the worst time.
You can probably buy them back cheaper in a few weeks or so.
That’s all for now. Thanks for reading and check out my site, InvestorTrip.com, for more articles and insights.