TOP 5 STOCKS TO WATCH THIS WEEK | EARNINGS WEEK
In a Nutshell
The core message: Buy high-quality stocks on dips with conservative position sizing using only capital you can afford to lose, while avoiding overvalued meme stocks like OpenDoor, PLTR, and Bitcoin-related companies like MARA and MSTR. Earnings week features Netflix, Tesla, Meta, IBM, and Western Digital, but wait for post-earnings clarity rather than buying ahead of announcements. Focus on understanding business fundamentals, market conditions, and geopolitical factors rather than chasing unrealistic returns or shorting irrational markets.
These notes were generated by AI and may contain inaccuracies.
The session begins with a discussion of the upcoming earnings week featuring Netflix, SpaceX, Tesla, Meta, IBM, and Western Digital. These companies will influence the broader technology sector and market direction. The Nasdaq has reached record highs of 762, surprising many observers with its speed. Futures contracts are currently slightly green but subject to rapid changes. The recommendation emphasizes buying high-quality companies on dips using unleveraged capital that can withstand market fluctuations.
OpenDoor is described as a ridiculous company with meme stock characteristics. After reaching a peak of $10 and falling to $8, it is now at $2 and considered extremely expensive. The company failed to succeed during favorable real estate and housing market conditions, making success in downward market conditions unlikely. The analysis warns beginners to avoid high-risk assets and draws comparisons to GameStop and AMC movements. At $2, the company is worth two to three times its actual value based on production versus market capitalization.
Position sizing is identified as one of the most important factors in trading success. Beginners often overlook this because they focus on identifying good deals rather than how to position themselves appropriately to profit. The advice is to buy smaller quantities when the price drops - if you can afford 10 shares, buy just 1-2 shares initially. This approach allows for adding more positions as trends develop in your favor, preserving capital and avoiding being forced to liquidate during continued declines.
Bloom Energy presents a case where both positive and negative factors coexist. The stock has good revenue growth but poor net income, with a price-to-earnings ratio of 266. Fair value analysis indicates a 40% decrease potential. The company is technically in a peak selling position with bad relative value, though price momentum, growth health, and cash flow are reasonable. Earnings are expected Thursday after market close. The stock moved from $100 to $350 and back to $160 within months, demonstrating significant volatility.
The discussion emphasizes understanding the nature of business operations, growth expectations, current obstacles, and market conditions rather than focusing solely on profit potential. South Korean market concerns, over-financing, and potential data center company collapses are mentioned as factors to consider. The approach advocates for deliberate rather than fearful decision-making, with proper position sizing to handle volatility. The recommendation is to buy only what you can afford to lose without devastating impact, allowing for additional purchases at lower prices if the stock declines further.
Trading and investing are distinguished as completely different approaches. Trading involves shorter timeframes while investing requires longer horizons to withstand fluctuations. The 2022 market decline, lasting 12 consecutive months, is referenced as an example where patience and proper positioning led to current financial stability. The importance of not over-borrowing and maintaining conviction during extended downturns is highlighted.
Netflix is being purchased for children's investment accounts. The stock appears technically attractive and oversold, with one of its cheapest price-to-earnings ratios historically. However, concerns exist about market saturation and potential loss of competitive advantage. Recent earnings have shown consistent red performance, with a historical downward gap from 70 to 66. The recommendation is to wait for post-earnings clarity rather than buying immediately before the announcement, as 5-10% gains from earnings reactions won't significantly impact long-term investment positions.
American Airlines is in a peak selling position following massive sell-offs related to tariff wars. Oil prices, which constitute 20-30% of airline expenses, are skyrocketing while airline stocks trade at low levels. Southwest Airlines is considered the best fundamentally among airlines. The risk-reward ratio appears favorable with a 40-50% chance of upward movement, though a 13-14% downside risk exists on current positions. The situation presents an opportunity for those who can position themselves appropriately, with oil price declines potentially serving as a recovery catalyst.
A call is scheduled with a financial advisor to discuss American Airlines given its oversold position. The approach values learning from different perspectives, whether more reserved or outgoing. Attendance and commitment are emphasized as distinguishing factors, with daily presence and team engagement being priorities. The speaker acknowledges being wrong more times than most people have tried, but maintains focus on consistent effort and learning from various approaches.
Recovery shouldn't be extreme. Unrealistic expectations should be avoided when investing. A 77% return on $100,000 would yield $77,000 in a perfect world, but reality involves uncertainty about whether recovery will occur and whether conditions might worsen before improving. The focus should be on finding deals and positioning to take advantage of them while understanding things may get worse before they get better.
Public companies are affected by geopolitical factors, and understanding these factors allows participation in making money as conditions change.
PLTR stock has begun declining significantly. The stock is considered overvalued and overpriced, but short selling is not recommended. PLTR is not among companies that are overvalued and constantly sold off. Short selling this stock has not been easy historically. The stock has gone through periods of decline followed by recovery and return. Even during declines, there remains hope and potential for recovery.
Past experience includes making money short selling this stock but also losing money due to short selling. The stock is referred to as "Thanos." There is room for further decline and the stock is fundamentally overrated, but markets can remain irrational longer than financial survival allows. Trading reached $200 without justification, but hope, guidelines, expectations, and new price targets support further increases. Irrational markets support irrational valuations.
The stock will eventually fall enough to consider investment, but currently it is not a favorite for short selling despite being overbought based on movements and trades. It's not considered a very good deal at current levels. Historical performance shows good retreats. For long-term investment, when a stock exceeds fair price, studying alerts, monitoring constantly, and waiting for better deals is preferable to rushing to pay exorbitant prices.
Futures contracts turned green while cryptocurrency markets remained in deep red. Cryptocurrency market participants believe their markets should dictate what real markets do. Futures contracts could return to red, and fear and anxieties may still exist. Caution is advised regarding sources of information and what receives attention.
October 19th was mentioned as potentially one of the biggest red days, coinciding with the anniversary of a historical market event. Cryptocurrency community thinking is characterized by hypothetical and imaginary cycles occurring every four years. Cryptocurrency technology was invented 15-20 years ago but hasn't been adopted by average people because transactions using Bitcoin or cryptocurrency are primarily conducted by thieves or on the black market.
Jeffrey Epstein was one of the early funders through the Massachusetts Institute of Technology (MIT) project. This is presented as fact rather than conspiracy theory. The opinion is that Epstein is not a good person, raising questions about participation in cryptocurrency. Trading Bitcoin can generate profits without requiring belief in intrinsic value. Limited supply can be created for anything, and comparing 100% ownership of Bitcoin to 100% ownership of Apple reveals the difference: Apple ownership includes a company worth $4-5 trillion generating billions in annual profits, while Bitcoin ownership provides only programming code.
Cryptocurrency was initially wonderful as a solution to problems, but the energy shifted to trading for value increase rather than utility. IBM profits are referenced as a transition point.
IBM will announce earnings this week. The company is not considered for excessive personal exposure. The stock is up 4% with a price-to-earnings ratio of 20, which is not considered bad. Profits and history show inconsistency. The stock would be exciting to buy at its low point. From a technical standpoint, it appears oversold with potential for recovery. Whether the company had a great 2026 remains unknown.
The stock performed very well in 2025 but has been trading between highs of 310 and lows of 200. It has consistently recorded lower peaks and lower troughs. Exposure requires accepting the need to endure periods without movement, potentially remaining in a casual situation for months. Understanding key catalysts that caused the fall from highs of 290 to lows of 200 is important for informed decisions. Earnings announcements may have caused significant drops followed by sideways trading.
MARA was destroyed during the past week because it positions itself as a Bitcoin vault company. Companies like MSTR are considered completely worthless. Their true nature is being revealed as failing companies that resorted to buying Bitcoin because their original business was no longer sufficient to maintain public company value.
SoFi took a significant hit. The question arises whether buying on a dip is desirable. When SoFi stock rose to $32, enthusiasm was extreme, but current trend and momentum are clearly not favorable. SoFi has historically been overrated with significant noise around it. The stock trades at a price-to-earnings ratio close to 30, which is not considered bad, but trend and momentum work against it. Factors driving the decline should be examined before considering exposure.
A random name generator was used for the $1,000 Weeble Challenge. Participation decreased from 304 to 313 members, with 297 entries last week and approximately 300 this week. The challenge requires only one lucky entry. Three winners are selected in case the first two do not meet requirements.
If already having a Weeble account for more than four weeks since the giveaway announcement, the post is sponsored by Weeble seeking new members. Existing members can fund accounts for friends, family members, or partners using the provided link, register, and make a qualifying deposit. The deposit amount can be five dollars, ten dollars, or one hundred dollars. Entry into the $1,000 prize draw requires using the link, registering, making a qualifying deposit, and joining the free Discord community.
The giveaway continues throughout October and November. The first winner in the Weeble $1,000 draw was announced, followed by selection of runner-up Alex Parks and second runner-up with username "I be smoking." All participants joined the Weeble Discord community started for this draw.
Fake accounts impersonating the presenter should be avoided. Personal contact will never occur requesting money management or personal information for trading on behalf of others. Trading occurs on the Weeble platform, which sponsored weekly videos for $1,000 giveaways. The platform was chosen because followers are motivated by money, making monetary incentives effective.
Weeble Discord server membership is available through Instagram messaging if needed. Weekly challenges encourage beginners to adopt healthy habits, especially at the beginning of their trading journey.
Live trading occurs every morning with the LPP team. Current month of October pricing is $225, representing significant discount from regular rates. Daily cost is less than a cup of coffee at up to $1.30 per day. Live sessions are not free. A live session can be watched before joining through the second link in the description. Sessions last 30 minutes to one hour when markets open. Recordings are available for later viewing, including access to the LPP Lessons Library and Discord. Lifetime access requires one payment. Registration is available now at discount or later at full price.
Nighttime trading hours are available on the Weeble platform. Instagram messaging is recommended for questions if not part of the LPP team. The goal is ending the year with positive profits.
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