Summary
Highlights
A beautiful week on Wall Street was disrupted by renewed tariff tensions with China, causing a profit-taking event. Donald Trump's statements about increasing tariffs on China, citing their use of rare earth materials as leverage, led to fear in the market. The speaker views these dips as buying opportunities and plans to analyze the SPY in a future video to identify a trigger for panic selling.
PayPal experienced a significant drop. While short-term profits were locked in, the speaker is still bullish on PayPal LEAPS (long-term equity anticipation securities). The chart shows the 9-day EMA curling above the 20-day EMA, a pattern that historically precedes a strong upward movement. The speaker notes a similar pattern that led to a rise from $61 to $92 in three months. The speaker closed October calls but kept LEAPS, expecting the upward trend to continue through October, with a stop loss at $66.
The speaker bought Lyft during the fearful selling, as it pulled back to a desired buying level after breaking out of resistance. The target for Lyft is between $27 and $30. Similarly, the speaker is buying SoFi, seeing it as a long-term growth opportunity, especially with the potential for autonomous driving. SoFi is currently above its 9-day EMA, and the speaker plans to buy every red candle, anticipating a potential run to $40-$60.
The market is overdue for a 4-5% correction, but upcoming Q3 earnings reports, particularly from big tech, could reignite the AI rally. The speaker had a profitable week, securing a 20% winner on Tesla and a 40% winner on the SPY through live trading. Despite some initial bull traps, the speaker followed the trend to finish the week with several nice winners.