Week 41 recap:
Our watchlist from last week was TSLA MSTR and ASML.
TSLA traded sideways after that big gap down after the announcement of robotaxi and robovan. We tried to trade that if there’s a downside follow through but unfortunately it traded sideways and we have no choice but to cut the positions at a loss.
We closed our trade in MSTR at a gain and traded COIN as well as this move altogether. We got a chance to trade LEU as well as a follow thru for the Amazon nuclear news and closed the position at a decent profit.
This week (week 42) is going to be a lot more interesting.
Big names such as TSLA, NUE, ENPH, BA, AAL, LUV, and RTX will be releasing the earnings this week.
Here is our watchlist of this week:
NIO – sentiment play for TSLA; I am looking for an upside trade for NIO. If TSLA moves to the upside, this stock will follow. I am going for a NIO $6 long call strike.
X (United States Steel) – sentiment play for NUE (Nucor Corp). I will wait for the earnings to be first released before trading this. CMC last week missed its estimate and yet traded to the upside. We all know that Nippon, a Japanese Steel Company is trying to acquire this company. This company is drawing a lot of attention and I’d like to trade this to the downside once that $38.50 resistance level got rejected.
RTX RTX Corporation) – This stock has been trading at an all time high and its price has been advancing ever since the global conflicts started. This stock beats its estimate from previous earnings releases and there’s a chance it will beat the estimates again. I’d like to see a major pullback on this stock to $110 -$108.
BA (Boeing) – I am bearish on this stock because of the strike as the union proposed a 35% wage increase over 4 years, higher bonus, higher 401k contribution, meaning more fixed cost on BA part. This company is bleeding cash and their debt is growing at a faster pace. But the market doesn’t care, and if this stock rallies to $160.00 level, right after the open on Wednesday, October 23, 2024, I will try to short this stock or get a $157put strike. Again, proper risk management on every trade should be observed.
I will be watching airline stocks as well too, such as AAL and LUV.
DAL (Delta Airlines) traded upside upon the earnings release as it shows their airline booking is improving. AAL and LUV could have the same result. Can AAL finally trade steady above $12 a share and try to test the $15 mark while LUV (Southwest Airlines) will try to fill the gap to $34.
I’d like to get LUV $35 long call strike and $AAL $15 long call strike.