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On October 18, we featured three of the most oversold stocks to buy.
We mentioned Target (TGT), as it traded around $158. It’s now up to $163.58.
We mentioned Amazon (AMZN), as it traded around $116. It’s now up to $120.58.
We also mentioned Blink Charging (BLNK), as it traded at $15.08. While it has since pulled back to $14.43, it’s still a great, oversold opportunity.
This week, we wanted to talk about three more oversold opportunities turning around.
Advanced Micro Devices (AMD)
After plummeting from about $100 to $60, this beaten up tech stock is finally showing signs of life again. It’s also starting to rebound from oversold RSI, MACD, and Williams’ %R. From a current price of $60.64, our long-term target is $100 a share.
Strangles differ from Straddles only by the fact the trade uses two separate strikes rather than the same strikes as in a Straddle. The risk graph below shows what the P&L of a Strangle would be. For the Strangle risk graph, imagine for a moment the stock is trading at $50.00 per share. The trader would need to purchase one out-of-the-money (OTM) call, and one OTM put. In this case, the trader bought one of the 54 strike calls and one of the 46 strike puts to create the Strangle.
1) FEAR FEARS What scares you the most ahead of Halloween? gas prices, interest rates, earnings season?
Alan is afraid of all of the fear. There are so many things people are fearful of but the markets have factored most of them. I'm afraid the sentiment will be hard to shift and by the time people get comfortable enough a lot of the momentum is back to the upside and they will miss out. Phil thinks that trades are getting ahead of reality. No doubt the federal reserve is trying to kill your confidence, don't be confident about the economy because it freaks them out. They want to see the economy slowed down so they can catch up with inflation.
2) CRYPTO CALM Has bitcoin become just another investment asset now with the big boys in it?
Phil says that with the turmoil in the markets, Bitcoin has held up better than any other asset class during the turmoil. That's pretty amazing when you think gold used to be the go to commodity for that. Cryptocurrency may have earned its stripes, Alan points out that Bitcoin has been stuck between 18K and 22K for two months. An upside break out of that targets $26,000 another 35% above. The high-flying days may or may not be over with the big boys involved as Goldman Sachs has legitimized it.
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