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We’re Playing DOGE for All Its Worth
Professor Bierman has a list of five stocks that Elon Musk’s sweeping government changes have put into play. Some of these stocks will tank; others are going to the Moon. Each one has the potential to double in six months. Here’s how to play along… 

Hi, folks - it’s Blake here with another Weekly Watchlist of stocks - and plenty of trade ideas, too. 

If you’ve been with me for a while, you’ll know these emails usually hit later in the day, often an hour or so before the close so I can have confidence in price. 

Today you’re probably reading this before lunch. There’s a good reason for that. The pace of the market has picked up, and I want to make sure you get a crack at the best price. 

Early as it is, we’ve seen multiple days of selling lately, and the majority of that has been hitting in the first hour or so of trading.

Don’t get me wrong - I’m not complaining about the selling because it’s just as easy to make money on the way down as it is on the way up. But I’m seeing some great opportunities to setup some trades - and not all of them are bearish, either. 

The healthcare sector is taking a hit - as it has for a few days now - and perhaps the most compelling bearish opportunity there is Intuitive Surgical (ISRG). ISRG had a phenomenally bullish 2024… but right now, it’s completing a trend reversal, marked by lower highs and lower lows. The break of support today could see anywhere from a 9% to 18% decline. Because this is a more expensive stock, I am comfortable with a short call vertical if price doesn’t get through today’s low. If it does fall through that floor, anywhere from $530 to $500, an out of the money put looks good.

The once-high flying technology sector is also taking a hit. Its SPDR Select Tech Sector ETF (XLK) represents an interesting, diversified bearish trade XLK. The short-term target is to finish the swing low and test support at $225… but if we can break $225 then we have a channel, or rectangle, breakout for XLK. In that case, I’d expect a $20 drop to $205 within just four weeks. Individual stocks inside the sector “basket” including Tesla (TSLA) and Microsoft (MSFT) could be good opportunities as well.

With all this selling, it’s no surprise there’s a classic flight to safety underway. This has pushed money into bonds and, as bonds have risen, yields have fallen. This has been the catalyst to push real estate through the short-term high. The iShares US Real Estate ETF (IYR), has broken through recent resistance and should be able to reach the November 2024 high near $102. That’s only a 5% return… but if bonds continue to rise, IYR should be able to reach the 5% target within two weeks, making this an attractive long play or bullish option trade.

This is without a doubt the fastest, diciest market we’ve seen in a while, but playing these Watchlist names smartly is a great way to add to your retirement’s bottom line.