TOP 5 STOCKS TO WATCH THIS WEEK | JULY 2026
In a Nutshell
Markets are testing key support at QQQ 680 after a sharp pullback, with semiconductors offering the best value at 17-19x earnings versus 30-40x for big tech. Ricky bought Micron personally for 40% upside potential but warns against over-leveraging, recommending beginners start with one share of SPY or VOO instead of sitting on sidelines. High-risk names like Rocket Lab, Circle, and Joby should be avoided due to negative earnings and weak fundamentals, while Netflix shows 40% recovery potential if support forms.
These notes were generated by AI and may contain inaccuracies.
Sunday July 19th at 5:45 p.m., Ricky from Learn Plan Profit discusses overnight market movements. NASDAQ is trading higher despite Middle East escalations and elevated oil prices, suggesting markets are showing resilience rather than panic.
The previous week marked one of the largest pullbacks since the March 2026 rally, which had taken markets from March lows to highs near 750. Current testing is occurring at major support around 680. A break below this level would create a significant gap down scenario, while holding could signal recovery.
Ricky maintains an optimistic stance despite willingness to short markets, noting that semiconductors have declined substantially. He has purchased several thousand dollars worth of semiconductor exposure personally, citing Micron specifically as trading at attractive valuations given memory chip and AI sector hype. He emphasizes this is a personal decision and not a recommendation, noting that Micron offers approximately 40% potential recovery if returning to previous all-time highs, while another semiconductor stock could offer 72% recovery potential if returning to previous highs of 2300.
The worst mistakes investors make are over-leveraging and sitting on the sidelines waiting for perfect timing. Ricky recommends testing the markets with just one share of any valued stock or index like SPY or VOO, arguing that having some exposure is better than having too much or none at all. This approach removes the make-or-break pressure and makes market participation more enjoyable even if prices decline further.
SKHY, a recent IPO from South Korea, is approaching previous support levels. Despite being too new for Pro research data, the stock shows a P/E ratio under 18 times earnings, $87 billion in revenue, and $50 billion in net income. This represents significant recovery potential if NASDAQ finds support and recovers. The stock has declined from 200 to 150, offering 27% recovery potential based on recent highs. However, South Korean market uncertainty presents downside risk if support breaks.
The key technical level to watch is QQQ holding above 680. A break below this support with continued downside momentum could lead to March lows around 550. Over-leveraged positions in semiconductors could accelerate selling pressure if momentum turns negative. Ricky has not carried an active short position over the weekend and remains cautious about buying the dip given current bearish sentiment and price momentum.
Semiconductors are trading at significantly lower valuations than other major tech companies. While Nvidia and Apple trade at 30-40 times earnings, these semiconductor companies growing at accelerated rates are trading at 17-19 times earnings, making them fundamentally undervalued. Ricky contrasts this with Tesla's 370 times earnings valuation, noting that while these semiconductor stocks are not fundamentally overvalued, sentiment must remain favorable for continued growth.
Joby Aviation presents concerning fundamentals with negative P/E ratio and poor price action from highs of $21. The stock is technically oversold but direction and fundamentals are weak. Ricky would not participate in this investment, though acknowledges a potential dead cat bounce could occur if technical confirmation appears.
Netflix demonstrates favorable fundamentals with a history of V-shaped recoveries. Despite current bearish price momentum, the stock offers approximately 40% ROI potential compared to average market returns of 7-10%. The stock has formed descending patterns with lower highs and lower lows, but previous breakouts have led to significant rallies. Ricky suggests monitoring for ascending support formation and setting alerts for price action confirmation.
Rocket Lab has declined over 50% from hype-driven highs of 150 following SpaceX IPO, with investors losing significant value. The company loses hundreds of millions annually with negative P/E ratio and remains 43% overvalued according to fair value estimates despite the decline. Ricky emphasizes this is a momentum-driven story rather than fundamentally sound investment, warning beginners about the volatility and irrational valuation supported only by market sentiment.
SpaceX, the most hyped IPO in history, has become one of the biggest flops with $1 trillion valuation loss. Meta recently showed nice upticks with rotation from semiconductors into Magnificent 7 stocks, though strong resistance exists around 700. Ricky maintains long-term Meta investment despite acknowledging potential pullback to 550s if resistance holds, citing the company's aggressive AI infrastructure investments.
Circle shows consistent lower highs and lower lows with negative P/E ratio and negative net income. The stock presents significant ROI potential from 52-week lows but requires momentum-based trading approach. Ricky advises only risk-tolerant traders familiar with managing momentum moves and taking profits at break of structure should consider this, while conservative investors and beginners should avoid due to unsupported fundamentals.
Ricky acknowledges making mistakes last week and addresses feedback about being too cautious. He emphasizes uncertainty around Trump administration escalations in the Middle East, noting that worsening conditions would justify further market selloffs. His approach balances recognition of recovery potential with acknowledgment of downside risk in the current environment.
If things do get worse than markets have every reason to sell off even further, oil prices will be driven up even higher. And then inflation will be driven up even higher. And then the likelihood of the Federal Reserve raising rates is even more possible. That is not bullish.
What if he just tweets one day and says, "Hey, signing a deal with Iran." Boop. What happens to the market? Right back up. He says, "Winning winning winning, right?" That's all it really takes. And market sentiment shifts on a dime.
That's why talking about both sides makes sense because we've never had anything like this. Normally it is very clear what's going on. We're here at a certain time and there's not these type of catalyst that can just be sent out in tweets that manipulate markets. We're working with a factor that was never a factor before and that's Trump's tweets that now he's offering for $100,000 to a bunch of Wall Street institutions. So, that's quite interesting.
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