OVERBOUGHT?! Tammy Marshall Reveals Her Top 2 Stocks to Buy Now

The S&P 500 just hit a new all-time high. AI data center stocks are still breaking out and the Atlanta Fed just made a massive cut to its GDP estimate. So, today we're asking the big question, is the market overbought or is there still room to run? And stick around because we have a wonderful guest that's going to reveal her two stocks that she's watching right now and help us answer all of it. Welcome back to Navalier Market Buzz. We're excited to have Tammy Marshall back because she is not only the Fibonacci princess, she's an expert on calling market tops and bottoms. So, we really want to know where we are right now. Welcome Tammy. >> Thank you for having me on again. >> So, Dad, can you set the scene really quick? The Atlanta Fed just cut its quarter 3 GDP estimate to 4.3% down from 5.8. So, what is driving that? >> Well, it was the retail sales report. Uh, obviously it was down for uh July. The reason it was down is well gas sta station sales were down 9/10en of a percent but and auto sales I think were down 18 but they were strong in June but the real reason was is online sales fell 2.2% because uh Amazon Prime Day in June so June we had a lot of strong sales they all disappeared in July when I look under the surface we saw consumers were spending a lot on apparel up 1.9%. Uh they even bought some furniture up 3/10 and they also were at bars and restaurants spending money up half a percent and that's five months in a row. So I think it's a good report but clearly because it's July it's going to knock down the GDP estimate. So that's why the Atlanta Fed slashed it from 5.8% to 4.3%. >> Edardini just put out charts on the quarter 2 earnings acceleration and Nvidia and Micron haven't even reported yet. Tammy, are we overbought here or is it still okay because of the PE compression? >> Well, I we're not overbought on NASDAQ. So, of course, S&P is has already met the first target from the June 9th low. And I can go ahead and share my charts for you here. What you're seeing here is my um S&P chart. And back here, you can see where we bounced on the 9th of June at 7237. Okay, we bounced, were able to get three of the moving averages back on the side of the bulls and then had that pullback again at the end of July on the 29th of July. That is when we finally took off. We met that first target. It's not on my chart anymore, but we met the first target, which you can kind of see that line there um off of that low from the 9th of June. And now we are getting close to the second target. So S&P is getting extended. Um, I'm still setting up price support for my clients, but uh, what you're seeing today is that we have continued to pull back from yesterday where we met the first target off the 6th of August low. Also, now NASDAQ tells a different story. As you can see here, we're nowhere close to the first target on NASDAQ. It's at 31,737. So, what I've been asking myself is, is NASDAQ going to roll over and pull S&P down with it, or is S&P going to continue to rally? NASDAQ continue to rally. What I'm really looking for us to do here is for us to be able to hold that 50 simple moving average at 29,300 on NASDAQ. We did that uh earlier this week. What I'm looking for at this point is for us to pull back on NASDAQ and S&P and for us to just continue rallying. So Tammy, did this um blow up in the situational awareness hedge fund in July? Was was that the low? And obviously we've rebounded from that incredibly. Is that why NASDAQ is so strong? >> Yes. I mean that that that would be my that would be my thought. I mean it's it's definitely definitely strong. A lot of the stocks have taken off that I look at daytoday like Tesla, Amazon, Nvidia, Micron. Tesla's finally gotten some shoes on, right? But Amazon's pulling back a little bit right now. But Amazon is still very strong. It still has all the moving averages on the side of the bulls. This is my Amazon chart here. As long as we stay above about that uh you know 248 range there, I see us continuing to move up because we're not extended yet on Amazon either. The targets are not 292 and 311. Uh Tesla Tesla's got an uphill battle here. It's still got a lot of the moving averages. It's still got a couple of the moving averages on the side of the bears, but we've crossed over the 20 simple. things are starting to look better uh with some of these stocks and you know with that being said Micron also it has all the moving averages back on the side of the bulls now >> I would add that you know because the S&P earnings are up over 47% and we haven't had Nvidia and Micron announced yet I mean we're going to be up over 50 this quarter for earnings and that's just stunning stunning so there's a lot of peak compression it's quite shocking I didn't anticipate that I anticipate earnings acceleration increase in order backlogs but not to this magnitude I didn't either. I didn't either to be honest. >> Tammy, how much of this rally is just relief that a hike isn't coming? >> You know, I don't know. That's the thing about with everything that with what the Federal Reserve says is that uh you know, at this point, it's difficult with all of these news driven things that happen. You know, that's more of an you know, an economy type question, but I do pay attention to what they say. But um you never know how the market's going to react based on what they say sometimes. So that would be a great question for your father. >> This is a time of year where they all go to Jackson Hole and everybody in the [laughter] media is all excited about it because everybody gets to go on vacation. You know what I mean? Like Steve Leeman at CNBC, he's a fly fisherman. So So he's he's ready. Okay. And all the Bloomberg folks are excited. So they have to talk about the Fed because they want to go on vacation with him. So Tammy, uh, Michael Bur has apparently doubled down on a short bet on Palunteer. Do you think any of this markets resurgence for NASDAQ was short covering? >> Possibly. Of course, that could have been what it is. You know, Palunteer has had really just a nice a nice bounce lately. It has all the moving averages back on the side of the bulls. And what I like is it has a pattern of higher highs and higher lows. Now, it's looking much stronger. Let me share my chart for you. Palanteer, you know, this week did have a a nice little pullback there. I was able to set up Fibonacci price support. Uh the support level is 160 to 67. Of course, that's no longer any good because we've actually taken out that high, but the targets from that are 182 and 186, but those are just smaller swing inside the swing targets. Palunteer does have a lot of room to move here with larger targets being all the way up at 235 and 270. So, that's one of the things that kind of gives me a little bit of caution here whenever I'm trying to decide if NASDAQ is going to, you know, continue to rally and uh, you know, catch up with S&P is that a lot of these stocks haven't uh met their larger swing stock uh targets that trade on the NASDAQ. So, what that tells me personally is now that they have all the moving averages back on the side of the bulls and they're really rallying that what is that going to do? That's going to pull the NASDAQ up and we're going to continue to see rallies uh as which would also continue to make uh S&P go up. Now, here's the thing though. S&P may not go up as much. It could just kind of consolidate and dribble drabble here and there while the NASDAQ flies. But these stocks that we're talking about such as Palunteer, Micron, all these other stocks, they have a lot of room to move. I mean, Palanteer is only at 176 and it doesn't get extended until it's at 235 and 270. >> So, we are in the middle of August and my dad likes to say that if he could close the stock market in August, he would. I know that a lot of people have feelings about it. There might be some air pockets, but Tammy, what's your read on this month? >> Agree with your father. I mean, August is slow. It's uh to put it in a more simple word, it's boring usually, but um you have to also think about kids that are going back to school, kids that are not in school yet. My kids are already back in school because I live in South Georgia, but then uh the kids up north don't even go back to school until September, so we still have a lot of families on vacation. And uh so I think that's something that we really need to think about when it comes to what's going on in August. Yeah, >> I would add that, you know, um um South Georgia, you have those wild boars roaming around and I'm in California, we got too many turkeys roaming around. So, do you have a wild >> I heard the other day the reason that we have we go ahead and go back to school is because of the hurricanes. So, I'm not sure if that's why we do, but apparently it's the has something to do with us having a pretty wild hurricane season. Well, hope hopefully the Sierra Sand stays over the Atlantic and they'll stop them for a while. So So Tammy, Nvidia's been acting really well lately. What's your technical opinion of the stock? >> Technically on Nvidia, um we are up against a huge cluster of resistance. So that's 226 to 32. I'm looking for us to push through that in order to continue to targets 249 and 265. Now I know we do have earnings coming up. We're actually still looking for a second target off the March of 30th, March 30th low of 241. If you scan back here, you can see where that low comes from. But all the moving averages are on the side of the bulls. I do think it is a great buy. I just what I would like to see us do is push through this resistance, then pull back and possibly look for, you know, an opportunity to buy there if you're not already in the stock. If you're already in the stock, depending on where what your price point is, uh, just go ahead and, you know, push on through. We may get a pullback here. Don't worry about it. What what I believe we will do is that we will continue on up to these larger swing targets. >> Wonderful. So, uh, Tammy, what are some of your favorite stocks now? >> Well, something that we we spoke about earlier were, uh, consumer staples. And so, that was something that I did look up. And this is Ros Stores. What I do like about this stock is um that this is somewhere people are going to shop even if uh you know they're if they're looking to save some money and as we know right now there are a lot of Americans that are uh looking to save money and um Ross is doing great here. It has all the moving averages on the side of the bulls. Has the 50 simple here in my setup zone. The setup zone is 230 to 42. The only caution I would give is that you're going to have a little bit of an uphill battle in around this 247 to 51 area. But if uh the low can hold from yesterday, then we could see targets of 261 266. So it is having a pullback. But I do still like the structure of the chart. As far as Starbucks is concerned, Starbucks has all of the moving averages on the side of the bulls. Has some room to run. Uh not yet extended. So, the setup zone for Starbucks is 103 to 107 if you're interested in grabbing some Starbucks. >> How about Walmart? That's the only retail stock I own. Uh, is it looking >> Walmart? Let's see. Now, this is my old chart on Walmart. I haven't run it recently. Walmart is finally looking better. I do have this to say about Walmart, though. My family, some of my family uh was in town this past weekend. And of course, more are in town this coming weekend because they're from the north and their kids are still out of school. So, they want to come to the beach. [laughter] So, Walmart is looking much better. It has three of the moving averages on the side of the bulls, and we do have a nice setup zones uh starting here. What we were talking about is what how the grocery prices at Walmart just really can't be beat. Um it there's just no the prices are not better anywhere else for groceries than at Walmart. And this is a huge deal especially for families with children um that are really paying attention to their grocery bill. We were talking about how your grocery bill might be, you know, $300 at one of the other grocery stores and you go to Walmart and the bill is $150 and it's the same it's the same items. So, also I remember that Walmart this summer was doing an initiative where they were saying that they wanted to um make sure the prices were low on ground beef, hot dogs, chips, things that you grill in the summertime, things that you eat in the summertime, pool parties, things like that. And uh they met that challenge. And I think that this is why we're seeing a huge rise in the stock now. uh because people are very happy about their prices. They're going back. They see that Walmart is their friend and that's where they want to shop. And we're above the 50 SMA now, which is around 114. So, I think that this 110 to 14 area is a great zone to use as risk if you would like to add Walmart to your portfolio. >> Well, thanks. Uh yeah, Walmart's the largest grocery retailer in America now and it's really helped their business because just a lot more traffic, you know. So, I would add that I'm um just uh south of Selenus and uh it's very sad the lettuce guys had to plow their lettuce back in the field because of the uh lettuce problem. Obviously, it didn't come from here. Okay. >> But, uh it's sad how it hurt all the overall sales. Yeah. And garlic is just south of me. Yeah. It's skill. >> They should have called me. I probably would have taken my chances. It's >> not the first time this has happened. It's just south of Yuma, Arizona. There's a very fertile place and we get a lot of our tomatoes and chilies and uh obviously lettuce from there and obviously it's this is not the first time this has happened. I think everybody's overreacted. >> Yeah, I think it's an overreaction too. I I actually grow my own lettuce at home with a tower garden, but every now and then I'll have to buy some, but for the most part I grow my own. Well, I was with the gentleman last night who invented how to bag it and was bagging the lettuce and he doesn't like it bagged. He just wants to get a fresh head and do it himself. So, um anyway, that's but you know, he's entitled to his opinion and he likes it very organic, you know. >> Yep. Yep. I understand. >> So, Tammy, one more question. In our last video, we were talking about Coherent and Celesteica. I would love to hear your thoughts about what's going on with them recently. >> Okay. Well, with coherent, um, we've fallen below the 50 simple moving average, but that doesn't give me too much caution only because a lot of times we'll fall barely below a moving average and then we reclaim it only to take off again. I do have Fibonacci price support here right around um I mean this zone's a little bit wide to Well, what I really want us to look at is that 200 SMA is at 265. So I would definitely look for two 257 to 65 to hold or we will retest the previous low of 220 or make a lower low. But I would say really good price support would be right around this 300 to 325 range just because those are nice even numbers. What I would look for is for us to take off from here, reclaim that 50 simple, be able to hold it on a pullback to continue the move up. It does have a lot of room to run. Let me make sure I have the correct high before I run my targets. Yes, it's that one. So, lots of room to run here with targets being that's 49966 was basically 500 and 575. So, that would be a really nice move there on that stock uh with a Fibonacci defined risk around 300 325 area. And Celestica also has fallen below the 50 simple but is holding the 200 simple. And I really like this one just because of where it is right now. 328 to 35 is going to be your zone of risk and it has a lot of room to run with targets being all the way up there at 526 and 592. And just a quick follow-up question. We've been getting a few comments about small caps. Can you help uh can you help us understand a little bit about what's going on with those? >> Absolutely. Let me flip back over here. Uh this is my main, you know, my main chart page where I have all the big ones. I mean, I run hundreds of charts a day, but this is IWM. And of course, that's what the small caps trade on. IWM is getting a bit extended here. We've met the first target off of the 31st of July low at 303. We've also met the first target off of the more recent low from the 5th of August at 304. But we have some room to run with more targets at 306 and 311. >> Perfect. Well, thank you Tammy so much for helping us make sense of this crazy market that we're in and unfortunately the boring month of August. [laughter] >> Well, it's less boring this time around. Yeah, I think so far we're on course for a record August. I I may never see this again in my lifetime, but I think it's just cuz we came off July and that hedge fund blowing up, but uh when it rains, it pours and it's been a lot of fun. >> Yeah, absolutely. I mean, I'm used to summer being boring and I remember last summer wasn't boring at all. So, you know [laughter] we get constant surprises around here, right? >> Yeah. Yeah. Well, the >> keeps it interesting. the 50% earnings growth on the S&P helps a lot too. So, [laughter] >> absolutely. >> And P ratios are being compressed. So, it's uh yeah, it's a it's a very interesting month. I'll put it that way. And it's going to end on a high note because everybody's going to be in Jackson Hole in a good mood. >> Yeah. >> Well, as always, all of Tammy's links will be in in the description below. But let us know in the comments, are you buying this rally or waiting for a pullback and any questions you have, and we'll answer them in our midweek update. Give this video a like and subscribe if you haven't already, but we'll see you in our next