TOP 5 STOCKS TO WATCH BEFORE MARKETS OPEN!
In a Nutshell
Markets opened Sunday with a gap-up on US-Iran ceasefire news but are now pulling back while testing critical EMA support. Among the five stocks reviewed, Micron stands out as the strongest fundamentally with accelerating growth and reasonable valuation, while SoFi, Coinbase, Vera Therapeutics, and SpaceX are flagged as expensive or speculative. The speaker warns against options trading, biotech bets, and most hype-driven names, urging caution as markets face a shortened holiday week with key economic data ahead.
These notes were generated by AI and may contain inaccuracies.
Happy Sunday. Markets opened in overnight hours with the NASDAQ gapped up following news that the US and Iran agreed to halt strikes and meet this week. The previous meeting scheduled for today was cancelled. Markets typically experience this pattern where attacks are announced after Friday close when markets are closed, then positive developments emerge right before Sunday futures open. Despite the gap up, markets have already begun giving back gains.
Markets are at a critical technical point testing major support on the EMA line. If this support breaks, it would be the first time trading below that EMA since Trump initiated tweets and the ceasefire agreement with Iran. Potential downside targets include retesting 685, 660, or 630 around the moving average where old resistance levels can act as new support.
Key economic events to watch:
- Tuesday: JOLTS job openings data and consumer confidence report
- Wednesday: ISM manufacturing PMI report
- Thursday: Initial claims and continuing claims job reports
- Friday: US markets closed for 4th of July observance
This creates a short 4-day trading week with multiple potential catalysts.
SoFi is trading at $17 after running up to highs of $32 and crashing down to lows of $15, representing a 50% loss. The stock is consolidating in a range with common resistance around $20 and common support around $15. Fair value analysis shows 13.7% downside potential. The company produces $579 million in net income with $3.9 billion in overall profit but trades at 39.8 times earnings.
Recent analyst rating changes have shifted to neutral despite strong Q1 results. Near-term profitability headwinds exist. The stock's price momentum has slowed significantly as attention shifted to semiconductor and AI stocks. SoFi lost its hype and momentum, and even after the 50% decline, it's trading at a higher P/E ratio than Nvidia.
During market downturns, safer investments include the Mag 7 companies: Apple, Nvidia, Amazon, Google, Microsoft, and Meta. These fundamentally well-run businesses have cash reserves to weather difficult periods and are likely to recover.
Vera Therapeutics is a clinical-stage biotechnology company with an FDA target action date. The speaker does not invest in pharmaceutical or biotech companies due to their speculative nature, low volume, and dependence on FDA approvals. Most FDA approval plays do not succeed, and when they fail, large downturns can lead to Chapter 11 bankruptcy or delisting.
The stock shows a descending setup with lower highs and lower lows, making it overbought after the recent upswing. It has a negative P/E ratio, generates no revenue, and loses $369 million annually. Investing Pro shows 15% upside potential, but the speaker avoids this sector entirely.
Coinbase is testing critical support on the weekly timeframe. The company generates $800 million in net income with $6.2 billion in overall revenue, but revenue shows signs of decline. Trading at a 49 P/E ratio, it remains at a premium.
The speaker does not believe in cryptocurrency, noting that 10-15 years later the promised technology has not materialized, a majority of transactions occur in black markets, and Jeffrey Epstein was one of Bitcoin's original funders. However, patterns from 2021-2023 suggest potential for another 50% decline if support breaks.
The company is much larger and more effective than during the previous cycle, so it may not reach previous lows of $30. Coinbase generates revenue through payment and order flow, which will decline as trading activity decreases in a bear market.
Micron has experienced 1,500% growth in one year. The company generates $90 billion in revenue and $50 billion in net income. Its P/E ratio is lower than both Apple and Nvidia despite 70% sequential growth and 346% year-over-year growth. The stock's price momentum is powerful and consistent while fundamentals show accelerating growth, making it difficult to classify as overvalued.
People could be overinvesting into AI, and eventually that stops. When the hype of AI or the overinvestment in AI begins to slow down, these companies will likely not make as much. That is not the case right now. Stocks pop off all the time and it is becoming more of a trend. There has never been an area where not only the price takes off, but fundamentally the company is performing that much better.
It is difficult to say these stocks are overvalued because they are not fundamentally overvalued, though they did experience such a huge uptick that if markets sell off they may begin to retrace. Out of every semiconductor stock being promoted, Micron is the favorite because of its growth fundamentally. The price momentum is attractive, but fundamentally it is a very sound company right now. There is hope for enough fear in the market that it sells off for a better entry, but right now it seems more like a story of momentum and direction where you either work with it or stay out of it.
Options trading is not done and never will be done. Options are not ideal for beginners. While it is a leveraged vehicle that can compound money quicker, one bad option trade can result in losing the entire account. This is not a style preference. It is not being said that options should not be done, but more often than not if risk management or position size management is not understood, options will drain the account.
SpaceX trading at $150 per share still puts it at a $2 trillion market cap. The IPO was not a failure. The fundamentals show 27% downside based off of fair value analyst estimates and it trades at 200 to 215 times its earnings. It is a company valued at $2 trillion that loses $8 billion in revenue. SpaceX is now valued more than Tesla, and Tesla is still believed to be overvalued.
It is wild that SpaceX came out of nowhere a few years ago and is now valued more than Tesla. The market has become immune to pumps, especially in the AI bubble and last year with fusion energy companies. Anything with a good story took off with accelerated and aggressive growth, then gave it back. SpaceX did the same thing in a week.
A conservative stance was taken with videos talking about SpaceX potential while encouraging beginners not to use leverage. Statistically, IPOs are often in the red 60 to 90 days after the IPO day. When SpaceX pushed to highs of $200, it was impressive because it is Elon's company, but a conservative approach was taken because of so much speculation in the market. It is beginning to find a more true price, but it still trades at a premium because it is Elon's company. Nothing about the current value looks attractive or makes a purchase appealing. It is not a deal and still has a ton to prove in a space that is still relatively new.
If overall markets begin to sell off, the most speculative stocks will crash the hardest. SpaceX has already sold off significantly and it can get a lot worse before it gets better. An alert could be set at the current resistance range of 163 to 165, and if it breaks above and begins to upswing, traders would consider going long. If it breaks support, traders would begin to short it. It is at a critical support range and needs to either prove enough demand to recover or get rejected and break support where short sellers pile in.
The original investors or first tier of investors are able to sell around August or July. August 11th is the first wave where 20% of investors are allowed to sell. Lockup periods should be looked up because most investors are not even allowed to sell yet, yet it gave back all of its gains as investors were not able to sell.
There is so much to learn in this market. After 11 years it is not super easy because markets are always changing and presidents always affect the market differently, with some being a lot more vocal than others. This market keeps you on your toes with constant learning. There are boring periods with not much going on and moments like right now with many catalysts and factors positively or negatively influencing the market.
If this excites and wanting to learn more while dedicating time to do it, either learn how to invest or learn how to trade. Everything can be learned for free with thousands of free videos on YouTube. For those who want to learn in a more structured way with access to daily live sessions, LPP 3.0 is available. It is a one-time payment with lifetime access. Members who signed up in 2018 still watch live trading every single day.
Promo code YouTube can be used at checkout for a discount on LPP 3.0. The video preview breaks down everything included. Previous live sessions can be watched by clicking the button. The risk-to-reward ratio calculator is free to use to plan trades and figure out win rate. The capital calculator uses starting capital, risk per trade, win rate, and risk ratio on the number of trades per day to calculate potential earnings.
LPP includes a one-time payment, lifetime access, A2Z video lesson library, daily live sessions, and private group chat. Nothing else is offered. The second link in the description is for LPP and promo code YouTube gives a big discount at checkout. Investing Pro for fundamental analysis is the first link in the description. The goal is to end the year on a green note.
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