Today, I’ll be talking about three popular stocks that I wouldn’t buy right now, especially in the current market conditions. Please remember, these are just my personal opinions, not recommendations to buy, sell, or trade. You can always check out more of my insights on my website, where I have great upcoming classes, especially on options. Also, if you’re interested in one-on-one coaching, feel free to check out my coaching programs, whether it’s for a few weeks or months. Let’s dive in!
Stock #1: SoFi Technologies (SOFI)
- Why I wouldn’t buy: SoFi is a relatively new stock that has struggled with overhead supply. Even though there’s a lot of interest in the company, the price action and trend tell a different story. The stock recently dipped under the $10 mark, making it harder for some hedge funds to invest. That makes it less likely for the stock to gain significant momentum.
- What to watch for: There’s a bit of sideways action happening right now, but it’s still part of a larger downward trend. If the stock can push above $10 and gain momentum, it could become a stronger opportunity. Until then, I’d avoid chasing it. You’ll have plenty of time to get in if it becomes a true winner.
Stock #2: Nio (NIO)
- Why I wouldn’t buy: Nio made huge moves in 2020, but after peaking around $50, the stock started to trend down and is now moving sideways. The volume has dried up, and the stock seems to be in a consolidation phase.
- What to watch for: There’s a gap that might be filled soon, and it’s possible the stock could base around this level. I’d wait for the volume to pick up before considering a buy.
Stock #3: AMC Entertainment (AMC)
- Why I wouldn’t buy: AMC had a massive surge during the Reddit-fueled rally, but since then, the stock has been in a downward trend. It’s currently hovering around $10, which is a critical support level. If it breaks below that, it could signal more trouble ahead.
- What to watch for: If you’re looking to take a position, the $10 level is key. However, due to the high volatility and the fact that the “big move” has already happened, I don’t see much value in chasing it now.
Bonus Stock: GameStop (GME)
- Why I might consider it: GameStop has managed to hold above $85 and seems to be basing around this price. While I wouldn’t jump into a long-term investment, it’s an interesting stock for short-term trading due to its price stability and premium.
In summary, these stocks have had their moments in the spotlight, but right now, I wouldn’t bother with them for long-term investments. If you’re considering trades, it’s essential to evaluate your time horizon. Whether it’s two weeks, two months, or two years, your strategy might differ. Everyone’s approach to investing and trading is unique, and that’s what makes the market so fascinating!
Thanks for watching, and I’ll see you in the next video. Enjoy the week ahead!
