…rade, you know, next 3 6 9 12 months, you could argue now is a good time to start scaling in, dollar cost averaging. And I'm not in it quite yet, but man, I'm considering it at these levels especially if it gets down to the 220, 210 range. That to me is a buy on McDonald's. Not only does the does the longer-term chart look good, but the the the earnings multiple is getting decent at this point. They pay a dividend and it's just genuinely one of those stocks that long-term will bounce back. It's not I don't th…
That to me is a buy on McDonald's.
AI-extracted context
Could it go down at 220, 225? Sure, you could make that argument that it could. But I think we're at a point now where it makes sense if you believe in the company, if you're looking at it, you know, more mid-term, long-term here, even for a swing trade, you know, next 3 6 9 12 months, you could argue now is a good time to start scaling in, dollar cost averaging. And I'm not in it quite yet, but man, I'm considering it at these levels especially if it gets down to the 220, 210 range. That to me is a buy on McDonald's. Not only does the does the longer-term chart look good, but the the the earnings multiple is getting decent at this point.
Full Transcript
How's it going guys? It's your boy Stoss here. Got my good old double espresso. Well, not anymore. I actually drank it, but we have the uh the remnants of the double espresso. I appreciate you all for tuning in as we have five oversold stocks to break down today, all of which look pretty good on the charts. They're oversold and I'm looking to hop in for a trade in all these stocks. So guys, let's dive into it. Hit the like button. Make sure to subscribe for future content. And with that being said, let's talk about stock number one, which I've been getting so many questions about time and time again throughout these last couple of days, these last couple of weeks. It's McDonald's, ticker MCD, which guys, this stock is down over $100 a share from where it was back in March. In March, we hit 340. Now we're under 240. We're trading at 237 this morning. And that percentage-wise, um again, it's a it's a $100 per share drop, but percentage-wise, we're down 30%. This has to be one of the worst stretches in McDonald's stock history. Um I don't have the stat on that, you know, 100% um you know, that's not a fact necessarily, but it's got to be. It's got to be one of the worst stretches here and we're taking out multi-year lows on the stock. We're trading at, again, about 237 right now. We took out the support from July of 2024 and October of 2023 where we held about 250, 245. That's not a good sign, right? And on the max chart here, now you're going to see, okay, it's actually still in an uptrend. The charts don't look too bad on McDonald's. In fact, we're now trading, well, not exactly at the 180 moving average on this monthly time frame, but we're getting pretty close and that historically has been a buy for McDonald's, right? Right around this moving average over the last, you know, years, couple of years, uh close to, you know, the last decade and a half at this point, we've seen buyers come in each time McDonald's has gotten to this point. And listen, McDonald's, it's a blue-chip stock. It's not going anywhere. They have 35,000 locations globally, maybe 40,000. I forget the exact stat. Um and they're and they're facing some headwinds right now, you know, from GLP-1s, arguably. We've seen that narrative, right? Oh, everybody's on a GLP-1, they're not eating crappy fast food. That could be part of it, but another part of it, a big part of it, is the [clears throat] fact that people are more health-conscious these days. And the reality is, guys, McDonald's is way too expensive. You know, yeah, they have this new value menu, they're trying to get more affordable products, um you know, menu items, but it's so dang expensive to what it compared to what it used to be. You know, you're going to McDonald's and you're spending what? 10, 12, 15 dollars, upwards of 20 dollars for a meal, depending on, um you know, your location, your area. And at that point, why why are you even going to McDonald's? People go to McDonald's for, you know, a quick bite, a cheap bite, to feed, you know, yourself and your family when you're in a pinch. If you're spending 20, 30, 40, 50, 60 bucks at McDonald's to feed your family, I mean, that just doesn't make sense. You might as well go to a a Chipotle or Cava or, you know, a higher, you know, quality fast chain or fast casual, you know, fast food chain. You might as well do that than go to McDonald's. So, that's been what, you know, has been working against McDonald's um these last couple of months, and people are just more aware or more, uh what's the term here? They're more cautious with where they're spending their money. And it's just it's just too expensive. It's ridiculous, man. And that is the problem here and that's why the stock's down. A bigger reason why it's down 30% but I don't think it's going to last forever. I don't see this stock going much lower here. I mean look, it's not it's not breaking out. I'm not calling the bottom. We're still in a down trend so it could go lower. But I just don't think it's going to go down much more, right? Could it go down at 220, 225? Sure, you could make that argument that it could. But I think we're at a point now where it makes sense if you believe in the company, if you're looking at it, you know, more mid-term, long-term here, even for a swing trade, you know, next 3 6 9 12 months, you could argue now is a good time to start scaling in, dollar cost averaging. And I'm not in it quite yet, but man, I'm considering it at these levels especially if it gets down to the 220, 210 range. That to me is a buy on McDonald's. Not only does the does the longer-term chart look good, but the the the earnings multiple is getting decent at this point. They pay a dividend and it's just genuinely one of those stocks that long-term will bounce back. It's not I don't think it's going to be one of these value traps like a Nike for example or other stocks of that nature. I think McDonald's will rebound but you got to realize we're not seeing it yet on the charts. So you got to be patient. That's the first stock I'm watching very closely right now and Rocket Lab is another one. RKBL is the ticker which is fairly oversold. I mean this stock hit $156 back in the end of May. Now we're trading at 75 bucks. We're down 50%, 55%, and it kind of looks like this one is putting in a bottom unlike McDonald's, which is still downtrending. We're not anywhere near breaking out of the moving averages. It kind of looks like Rocket Lab is holding 60 to $65. We're potentially, not guaranteed, but potentially putting in a bottom here. We're pushing over the moving averages, and we have a golden cross on Rocket Lab here. So, I'm not saying this is going to go back to 150 like that. That's not realistic, right? But could it start making a move back towards, um, you know, 85 90? Could it fill this gap right here, which we've, um, talked about before? It's been a while, but could it go back to where it was before earnings, around 85 90? Could it go back to where it was back in April, about 85 90? I think that gap could fill, and then if that breaks, I mean, this could go to $100 plus, right? It could. And I think the space stocks do have another run in them. I've said that before. I'll say it again. I used to be in Redwire calls. I sold those for a profit, looking to get back in potentially. Um, I'm just waiting for the technical um, alert, and we're starting to see it here on Rocket Lab. Um, you guys know, they're, you know, they're building rockets satellites spacecraft components. When it comes to space in general, the space trade, uh, Rocket Lab is a top-three name to consider, in my humble opinion. And I'm not in it yet. I'm not in McDonald's yet, like I said, but I am in this one, stock number three, Uber, um, ticker UBER. I'm in calls. I bought the $70 calls that expire next September. So, we have a good 12 months on those, and I am down a little bit. I think I checked my, uh, portfolio that I own the calls in. I'm down 15 to 20% which I'm cool with, you know, that's why I gave myself 12 months. I don't want to give myself a month or two to be, you know, to I'm not trying to nail the timing. It's hard to do that, so I give myself more time with the calls. So, if I'm wrong in the, you know, in the short term, it's fine because we have time to recover and on the charts here, Uber is way oversold. We're holding support as of now, which we have over the last couple of months where we're maintaining the bottom of this channel as you guys can see here on the 4-hour time frame. And look, every single time that we've tested $68 to $70 a share, this stock has rebounded since February. Now, now is that guaranteed or is it guaranteed that we'll rebound again? No, not necessarily. I mean, this could potentially break through this channel and it could bleed down to 60-65 dollars, which would not be good for my trade. This is why I put in a smaller position here. I'm not buying hundreds or thousands of shares. I bought some contracts, you know, a smaller a smaller dollar value, but it gives me leverage. And that's why I did that, you know, so if I am wrong, okay, I'm not going to lose a ton of money as I would if I bought a ton of shares, if that makes sense. So, I am in Uber right now and the whole narrative is, oh, you know, what are they going to do? It's Uber vs. Tesla, Uber vs. Waymo. I think there's a world where all of these coexist, you know, I don't think it's going to be winner takes all in this in this market. I think Uber is going to be a key player and that, in my opinion, will show in the stock price in the next 3, 6, 9, 12 months. I'm waiting for it. I'm waiting for the break towards 80 bucks. I think we do fill this gap again and quite frankly, I think we break out of that and I think this could go to $90 and maybe even $100 a share in 2027 and that's kind of what I'm positioning myself for with these calls. And who knows, maybe I average down. Maybe I add more contracts. I'll keep you guys posted. Everybody in my Patreon, you guys know every time I make a trade, all the stocks I buy, my portfolio, you know, we break down, do portfolio updates. There's a private Discord. Check it out. Link down below in the bio and the comments or go to stock service.com/patreon and I just showed you guys a trade I made yesterday. I bought Sandisk. This is not part of the video, but I'll show you anyway. I bought Sandisk at 17, I think 47 or 45 and now we're pushing 1800 in the premarket and I'm looking to lock in that game at open here or at some point during the day. If this thing blows through 1800 today, I'm locking the profit on Sandisk. So, we're making some moves here guys. Um, another one I'm watching is Iron, ticker they're in AI cloud infrastructure, um, essentially supplying data centers and computing power and we can see the stocks been a bit rough, a bit rough since you know, the the early days of the summer, which now it's it's almost October. I mean, summer flew by. Summer's gone. I mean, it's it's cold here. It's not cold, but you know, the cold weather's coming in guys. I wore a jacket this morning walking my dog. I was like, oh, this is nice. Fall weather, the leaves are coming down and I think the stock is is going to come back. We're noticing the chart set up here. We have a golden cross on Iron. We have a clear break through above these moving averages. We have a cup and handle arguably as well here. And if you notice on the one-year chart, or is it the three-year chart? No, no, no. The one-year chart you're noticing here, we kind of have an inverse head and shoulders. And that, you know, all this is pointing to more upside in the stock. It's not guaranteed, obviously. Trade at your own risk, but I could see the stock going back to 50, 55, maybe $60, and this thing catches fire fast. We've seen it happen time and time again. Iron could catch fire fast, and I think this could again break 50 bucks like that, and now we're at 46. We're pushing 47 in the pre-market this morning. I think there was more upside. I think there's more upside here. So, I'm going to set my alert at let's see, 48 a share. Might as well do that right now. Ba ba ba. And let's see, I'll do another one at 50 bucks. And by the way, guys, hit that like button. Make sure to subscribe. I appreciate you all for tuning in, you know, all you guys on Facebook, on YouTube, on TikTok. You guys are awesome. Thanks for all the support. And it wouldn't be possible without you all. So, I set my alerts at 48, 50 bucks. And Coinbase is another one, the last stock for this video, which, you know, you you might be like, "Stas, it's not oversold. It's rallied a good chunk. We're pushing 200. We just hit 145." I still think there's more to go here. And in the grand scheme of things, man, it's still very oversold. If you pull up the three-year chart, the one-year chart, we're nowhere near where we were. In fact, on the one-year chart, we're now, just now, breaking through the moving averages, breaking the downtrend slowly. I don't necessarily think the Bitcoin move here, and kind of the resurgence of crypto a little bit, it's not fully back yet, but I don't think it's necessarily priced into the stock yet. You know, all the trading volume that we're seeing, you know, the increased trading volume, sentiment around Bitcoin has gotten a lot better. Crypto in general has gotten a lot better. I don't think that's reflected in Coinbase's stock yet. And look, I'm not saying the stock's going to go crazy on earnings. I mean, I I I think it could, you know, it's not guaranteed though, but I just don't think it's um reflected yet. Same with Robinhood. And obviously crypto's a much smaller piece of the pie for Robinhood. Um I just think Coinbase could be a mid-200 stock again in 2027, I think. I genuinely think that. Maybe even by the end of the year, especially if Bitcoin Look, Bitcoin's at 85 right now. If Bitcoin goes 90 to 95, 100, oh yeah, Coinbase is going back to the mid-200s. I think Robinhood is going to start pushing 130, 140. We're already almost there on Robinhood. I mean, this stock's been going nuts. I'm long since 72 bucks a share. Um I'm loving it. I'm I'm having a great time owning this stock guys. Um yeah, going back to Coinbase, it's it's getting near that big 220, 225 resistance. I think that gap could fill. Then Then if that breaks, again, mid-200s, we're well on the way as Bitcoin is clearly breaking out now. We have a golden cross. We're taking out 82, 83,000. That's been a big resistance on the stock. Um or not the stock, on Bitcoin. And I think we're going to 90, 95. Um and listen, it might not happen, but that's what the charts are pointing to. We're at multi-month highs on Bitcoin. We're We're pretty much at a 7, 8-month high on Bitcoin. So, what do you guys think? Those are five stocks I'm watching very closely today, and I only own one of them, but I'm looking to get into all of them, obviously, or I wouldn't be mentioning them in this video. And and another one I own is SanDisk, full disclosure, but I guess that wasn't a part of the five. Either way, what do you guys think? Let me know in the comments. And again, check out the Patreon if you want to keep up with my trades, my portfolio updates. You You kind of see how I manage my portfolio. You get access to my private Discord. We We can chat all day. We do chat all day in there. You can ask me questions. And it's fun. It's a good community, so make sure to join. Link down below in the comments, in the bio, or go to stossereffect.com/patreon. And with that being said, cheers. I'll see you guys in the next video.
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