TOP 5 STOCKS TO WATCH AS MARKETS OPEN TOMORROW!
In a Nutshell
Markets face pullbacks from US-Iran tensions, Strait of Hormuz closure, and ceasefire expiration, but remain irrationally bullish amid earnings season; watch oil plays like UCO (support at 36.50, targeting 42) thriving on uncertainty, while airlines (LUV, AAL, BA, JETS) offer dip buys if oil spikes prove short-lived. Tesla earnings on April 22nd expected dismal (36¢ EPS, $22.28B revenue) with overvaluation at 396x earnings, slim margins sans subsidies, and unproven robo-taxi/Optimus hype; avoid or trim momentum names like SanDisk (wait for reversal), AMD, Nvidia, Microsoft, Meta. SQQQ for intraday shorts only due to leverage decay; Robinhood acts as Bitcoin proxy, vulnerable in recessions; markets at highs despite weak economy signal future red flags.
These notes were generated by AI and may contain inaccuracies.
Hey, it's Ricky with Tech Solutions. Today is April 19th, 7:47 p.m. in Arizona. Iran has rejected participating in the second round of negotiations with the US. Trump responds: "President Trump says that the US Navy has struck an Iranian ship transiting in the Strait of Hormuz and the US Marines have taken full custody of the vessel." Is this the end of the ceasefire? US stock market futures opened sharply lower as Iran war peace talks stall and Iran closes the Strait of Hormuz. The US-Iran ceasefire is set to expire in two days. Markets pulled back despite attacks. Markets have been irrationally bullish for the past 12 to 14 days. The rally was due to the ceasefire pause. If escalation continues, markets could dip but get bought up by close tomorrow, retesting all-time highs. The pullback is only half a percent on NASDAQ—nothing significant. From lows when there was fear to highs of 650, that's a 16% rally in a short period. Markets should have corrected sharply since the ceasefire was the sole catalyst, but markets are irrational. Earnings season starts now, perfect timing to see if companies outperform expectations despite weak labor market and rising inflation.
Magnificent 7 companies expected to do well. Tesla reports earnings this week—excited to see it come in way lower than expected. Consumers not lining up to buy Tesla as consumer spending is down. Tesla is incredibly overvalued. Elon talks about robo taxi and Optimus robot, but he's been talking for 5 to 10 years—still not here. It's a car company right now and not growing.
Oil was hit when markets rallied, retracing despite not being cheap. Oil stocks or ETFs like UCO have common support at 36.50. It finds support and rallies repeatedly. Discussed with LPP team buying small amount of UCO at 36.50—now up over 6% overnight. Will it thrive in uncertain times? If attacks continue and Strait of Hormuz stays closed, US impacted despite being oil rich. Americans paying more at the pump; oil per barrel up. Testing resistance at 40; could retest 42-42.50 with more uncertainty.
Airlines have 20-30% expenses from oil. Flights more expensive past two months. Oil up means airline stocks down, but vice versa if oil spike short-lived. Possible dip buys: LUV (Southwest), AAL (American Airlines), BA (Boeing), JETS. Buy at oversold levels for recovery once Iran issue settles.
Tesla reports Wednesday, April 22nd. EPS estimate 36 cents per share—terrible. Revenue expected 22.28 billion, lowered from previous. Stock still at premium. Producing same levels as 2023, revenue not increased, margins smaller. No longer subsidized by government (1-2 billion in EV credits yearly). Profit margins slimming. Trades at 396 times earnings vs. Magnificent 7 average of 30. Elon sells dream of robo taxi and Optimus robot—not in current P/E. Robo taxi: $5 rides vs. Uber's $20. Concerns: wear and tear, tires expensive, charging, damage, razor-thin margins, saturated market. Wouldn't own one for $5 rides.
SanDisk popular in LPP group. Loses billion in net income, negative 130 P/E—not valued correctly. Don't short early on momentum stocks—could squeeze higher. Like shorting GameStop while pumping. Saying: "I would rather be late to the sell-off than early to a rally." Was $40 last year; could hit $1000. No technical support for short yet—still in uptrend. Respect it, let it run. Set alerts, wait for reversal confirmation. Trade once when it crashes like a rubber band.
AMD discussed when at 200—bought dip as relatively cheap. Took small positions for self, daughter Remy, son Ezra, wife Rachel (long-term accounts). Trimmed as it ripped 40%. Don't know future moves. Like UNH bought at 280, ripped to 330-340 after Warren Buffett. Not about timing market but time in market with common sense: consider overbought/oversold, no leverage. At 280, more downside than upside potential. Still invested long-term but not buying more. Check risk-reward.
Made Investing Pro tutorial—flash sale less than $9/month. Use daily for fundamentals alongside technicals. Affiliate link in description.
Nvidia: Invested long-term, trimmed after ripping to 200 highs amid uncertainty.
Microsoft: Trimmed even not at highs. Losing AI race, trading at premium it can't regain. Was biggest Mag 7 loser, down 35% in retracement.
Meta: Trimmed after nice rip.
Disconnect: markets at all-time highs despite average people struggling. Stock market leading indicator; red flags in economy will reflect eventually.
SQQQ not for buy-and-hold—triple leveraged, decays due to path dependency. OK for intraday on selloffs, not overnight (Trump tweet risk). Leverage great when favorable, terrible against.
Robinhood trades as Bitcoin proxy. No more PDT rule (247 trading?) bad for beginners—more trading not better. Overextended, crashes with Bitcoin. Revenue from payment for order flow struggles in recession, slowing trading/consumer spending.
NASDAQ down half percent. Trump starts wars Fridays after close, peace deals Mondays before open—ended Iran war 7 weeks in a row. Markets at highs despite weak labor, high inflation since 2023. Tesla worst earnings since 2023 expected, yet bullish. Watch live tomorrow at market open.
LPP is designed for those who learn best by watching other people. Reach out with questions via Instagram, the third link in the description. Check out Investing Pro and their current sale, the first link in the description. Appreciate your time. Let's end the year on a green note. Take care team.
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