ALERT: 3 OVERVALUED STOCKS YOU MIGHT WANT TO SELL SOON!
These notes were generated by AI and may contain inaccuracies.
Today's Friday the 13th. Three overbought stocks added to the overbought watch list. These companies are still pushing higher, so do not short them while direction favors bulls. Consider adding to watch list if they meet criteria. Share overbought stocks you're watching for potential short or profit-taking in comments.
Rivian recently reported earnings and exceeded expectations, but still loses a ton of money. Got rid of government subsidies, so things bound to get worse. Releasing new vehicle to compete better with Tesla. Net income of $3.6 billion—no longer a new car company, continuously getting worse. Pro Research shows revenue upticking quarter after quarter, but with consumer spending slowing in 2026, will Rivian get out of the red? Trading at expensive premium as unprofitable company with negative PE ratio of 4.8 times earnings.
Was downtrending with consistent lower lows and lower highs before this week. Wall Street has not liked it—traded flat past few years, highs $18-19/share, lows $9-10/share, with ascending support. On shorter time frames (4-hour, 1-hour, 30-minute), overbought reversal forming. Past two days post-earnings brought attention on high volume. If profit-taking starts, selling pressure kicks in. Added to radar for possible short—not necessarily next week, but watch and follow up. If sells off to previous lows around $14/share, over 21% downside.
When shorting a stock, greater risk because no cap on how high it can go. Risk management is A1, top priority.
Coinbase getting destroyed since peaking at new all-time highs in October 2025, when Bitcoin hit new all-time highs. Consistent downtrend since. Reported terrible earnings: $600 million loss. Net income was thought to be in three billions, now at $1.2 billion. Trades at PE ratio of 29.6 times earnings—not super expensive, but consistent downturn.
If bullish on Bitcoin and expect bull run to continue, no sense shorting as trading activity and revenue expected to increase. But if headed to new lows (e.g., government shutdown tomorrow, crypto winter), breaking support leads to gap down potential. On 4-hour and 1-hour, overbought reversal. Gapped up 16% during normal trading hours post-earnings—maybe sold off too much before, and earnings not as bad as expected despite being bad. Was descending pattern before. If returns to previous lows, 14% downside. Do not short if holds and no reversal confirmation, especially if Bitcoin upticks—Coinbase trades as leveraged proxy to Bitcoin. Catalyst was earnings, bad but maybe not as bad as expected. Pre-earnings sell-off due to Robinhood missing earnings (not as substantial sell-off, no $600 million Q4 2025 loss).
Trading at $18/share, previous lows $7-8. Gathered attention—not selling off, so not safe short, high risk. Trading at elevated level it normally doesn't. Volume picking up; if fades and profit-taking follows, possible. Had insane days: 13% today, 20-60% days. Beginners stay away—need experience and volatility tolerance. Just because overbought and elevated doesn't mean it sells off. Markets on their time—stay patient, calculated, set alerts.
Although discussed overbought stocks, follow up on oversold stocks for buying dip long-term—not tech-heavy as most elevated. Small list of 2-3 stocks. Drop thumbs up and subscribe to see that video. Trades live every morning—sign up via second link in description to watch live as soon as market opens next business day (Tuesday, market closed Monday). End year on great note.
Keep Ricky Gutierrez in your library
Save the videos and channels worth coming back to, and find them again in one place.
