5 STOCKS TO BUY AS THE MARKET SELLS OFF!📉

So stocks weren't so pretty today, guys. Literally, every index went down with the Q's leading the losses down almost 2%. We had silver down, gold down as the VIX went up and oil went up as well. So, we have to break down where my head's at the charts. Five stocks I'm watching now and a hedge that I just put on in the market. We're going to break down that trade in this video. So guys, hit the like button, make sure to subscribe, join my Patreon if you want to be a part of my private Discord, see my trade updates, my portfolio updates, all that's linked down below in the bio, in the comments, or go to stocksurfest.com/patreon. And now, cheers, guys. Got my good old energy drink. I appreciate you all for tuning in as always. And now, let's dive into it. So, the S&P 500 looking at SPY went down just about 3/4 of a percent, just under 3/4 of a percent. As again, the Q's led the losses today down about 1 and 3/4 of a percent. Now, we're trading right around the 180 moving average here on the 4hour time frame as the Dow went down. Not much. Dow went down a quarter% and the S&P or which one am I missing? the uh the Russell went down 1.3%. So, pretty rough day uh for tech and the small caps. The S&P not too bad. Um and the Dow really not bad at all. Honestly, only a quarter% down as the VIX, which we were talking about a couple of days ago. I think the VIX is going to go up. Oh boy, it's starting to go up now. We went up over uh over 4%. Nothing too crazy, but it is starting to creep up back into the mid high teens as oil, both Brent and WTI had green days. Um, WTI went up around 1%. Same with Brent about actually half a percent. Uh, but they're creeping up. Brent's now at 91 a barrel. WTI is at uh, you know, 84 85 as things in the Middle East. Who the heck knows what's going to happen? Things are stalling. the straight, you know, who knows what's going to happen with the straight, when it'll fully open and who's going to run it. I mean, guys, nobody knows. There's a lot of uncertainty, and that's why oil continues to to trickle up. Not near where we were a couple months ago, thankfully. Uh but it is starting to run off the lows and it kind of looks like you know and obviously oil doesn't trade based off technicals fully like other stocks for example uh but it kind of looks like we're putting in higher lows here. We're starting to break out. We have an inverse head and shoulders. Oil might be going back to 100 a barrel by the looks of it and it looks like a lot of these energy stocks are pricing that in. you know, we have XLE completely ripping again. Uh, which is a whole another topic for a whole another video. So, rough day for the uh for the market. Yen carry trades looking a bit shaky. Bond yields here in the United States are going up 10-year, 30-year. You know, there is uncertainty over in Japan, which is causing fear here in the US market, which maybe maybe I'll dive deeper into that in in another video. And we have the midterms coming up, guys, on November 4th here in the United States. And I think there's going to be volatility. In fact, I talked about in my previous video, the VIX usually goes up heading into the midterms, right, towards 18, 19, 20. And it typically sells off after the midterms, right, historically based on my research, guys. But we are due for some volatility which doesn't guarantee the market's going to crash. Uh which I'm not calling for that quite frankly. But we could get some sort of pullback. Um I think we will quite frankly between now and November, right? And with that being said, I want to share with you guys a hedge that I put on. Uh nothing too crazy, right? It's kind of like an insurance policy for my portfolio. And listen, when you're when you're, you know, long a bunch of stocks, in my case, a lot of these are um, you know, tech stocks, AI stocks. I mean, not all of these companies I own are tech and AI stocks, but a decent chunk are. You you want to have some sort of um, hedge in case the market pulls back, there's volatility, you know, a lot of your stocks come down. This way, you can make some money on the downside. So what did I do you may ask? Well, let's talk about that right now. I recently opened a put debit spread on QQQ as again kind of an insurance policy, a hedge on my overall portfolio. And the trade is pretty simple. You guys see the cues right here. We're trading at what 7 uh 17 as of this video. Again, we went down 1 and 3/4 of a percent. And don't worry guys, we'll talk about the five stocks after this part of the video. So, make sure you guys um stick on throughout. I want to explain my hedge very quickly. So, what I did again is I put on I opened a put debit spread and essentially what I did, it's simple. I bought the $710 put on the Q's, which again now we're trading at 717. So, I bought the 710 triple Q puts um that expire in November, I believe the November 20th strike. And at the same time, I sold the $690 put with the same expiration date, November 20th, which is a little bit after um the midterms. And ideally, I close this trade uh before that expiration date even rolls around. But buying the 710 put by buying the 710 put this gives me bearish exposure while selling the 690 put lowers the cost of the trade and essentially defines my maximum profit in the trade. Right? And the way it works is listen, if the Q stay above 710 at expiration, both puts expire worthless and I lose the premium I paid, which in this case um was about a debit of $650 uh you know per um you know per put debit spread, right? So in this case I lose that completely, right? if um the Q stay above 710 at expiration um and that premium is my maximum loss in this scenario right and it's essentially the insurance that I'm paying to protect my portfolio and if the Q's fall below 710 the spread should generally increase in value at that point my exact break even price is $710 minus the premium I paid per share which I think is about $630 to50 in that ballpark. Um, so below that break even point, which I think is at roughly 703 for my trade, below that break even point, that's where the trade becomes profitable with the max profit being at 690. The spread reaches its maximum value if QQQ is at or below 690 at expiration. And since there is a $20 difference between the two strikes, each spread can be worth a maximum of $2,000. All right. And if you get more and more spreads, the more potentially you can make. And my maximum profit is that $2,000 per spread here minus the amount I originally paid for the trade, which again, remember that was about 650, $6.50 times 100, 650, right? or 630, whatever the heck it was. Uh but you subtract 2,000 or you subtract that from 2,000 and that's the profit, right? Uh the max profit. And the important thing to understand is that this is not an unlimited bearish bet, right? I'm kind of capped at 690. My downside is capped at that point. Uh but my upside is also capped once um the cues reach 690 in this case. And I'm essentially using um this trade primarily as a uh portfolio insurance like I said. Um and if the market keeps moving higher, my stock should benefit. And if I essentially um lose the cost of the hedge, it is what it is. The the market is going higher. I'm making money on my stocks. And if the Q sell off, the spread can gain value and help offset some of the the losses in my long-term positions. So that is what I'm doing right now. Um, not a crazy amount of money. I'm not going all in on put spreads right now, guys, but essentially I want some downside protection heading into the election. Um, you know, quite frankly, for September and October as well, and that's what I'm doing. And if the Q's soar to 750, awesome. I'm going to make so much money on my longs that the the loss of 650 per uh, you know, spread, that's not going to matter, right? because I'm not going all in on this hedge. That's the point. A hedge is a small, very small part of your portfolio. Maybe like 1%, maybe half a percent, you know, we're not talking big dollar figures here, guys, or you know, big percentage value. I mean, it could be a big dollar figure. Um, you know, depending on how, you know, big your portfolio is, but that's what I'm doing, guys, on the cues to kind of protect myself on the downside. And it's way safer than I mean, look, you're you're messing with options. There is heightened risk obviously, but it's safer than straight up buying um puts, right? You know, it's a bit safer. And maybe I'll do another video on that at another time, but I do want to focus now on these five stocks I'm watching. We might as well dive into it. By the way, guys, hit the like button and don't forget to subscribe. Hit that follow button if you're watching this video and you're finding value. I appreciate you all. So, let's go over number one, which is Amazon, ticker AMZN. And I know it's Amazon. We talk about it a lot, but I think it's finally cooled off enough post earnings, which, oh, by the way, earnings were unbelievable. We've cooled off a good chunk. I remember somebody in uh my Discord on Patreon was asking me, "Stos, should I buy Amazon at 270 for a trade?" I said, "No, hold off. Be patient." And now we're at 259. Now might be the time to start scaling in. And quite frankly, I don't see Amazon going much under um 240 to 250 at this point on this pullback. Um you know, we're right by the 180 moving average as of this video on the 4hour chart. That's a good sign. Uh you know, I I think we've gotten a bit oversold. Not extremely oversold. We're still up a ton off the lows. Uh, but we've shaken out some weak hands. We've seen a good couple of red days in a row at this point. I think Amazon um at the very least could see some consolidation, but ultimately a pop here in the um in the in the 250 range. So, I'm excited about it. Ticker AMZM. And look, I got a decent amount of my position called away um especially in my Patreon portfolio, but I'm still long um Amazon, right? I did get my shares assigned on those covered calls um at a 260. Yeah, 260 strike and now funny enough it's under 260. So if I had a little further out expiration date, um I would not have lost those shares. Either way, um I'm looking to get back in onto onto Amazon especially especially if it somehow gets under 240. Um yeah, I'm going to build out that position again. So Eli Lily is one that I'm watching as well. lly. The company just reported earnings not too long ago. I think it was in the middle of July or end of July. Um, no, early August actually. Man, I I should have had that better. Uh, let me see here. Um, Eli Liy reported, let's see if we can find the numbers quickly. Maybe we can't see them down here, but I'm pretty sure from what I remember, they reported pretty decent numbers. And the stock at this point, it is starting to break back up. We had a 3 1/2% green day. We're by no means fully breaking out, but we are testing 1,200 to 1250. That is a big resistance stemming back from the end of June, right? And we're making um at this point higher lows into that resistance. So, I think Eli Liy could potentially take out 1250. This ascending triangle might play out based on uh what I'm looking at here. So, I'm going to set my alert at 1250 on Eli Lily. Mark is at or above 1250. And the next stock here, guys, is Alta, ticker ULTA, which I like here. Um, heading into earnings, Alta kind of got got a bit too oversold in my opinion. It got very beaten up from February all the way to, you know, what, July? We lost about $370 per share. I mean, this is crazy. Or 270, excuse me. Either way, 40% and the stock's now been slowly recovering. You know, it hit 440 a couple weeks ago about a month and a half ago. Now, we just hit what 560 a couple days ago. We saw the draw down to 490. Pretty violent pullback. But then again, it got a bit overbought. Now, we're seeing what today we had a 5% green day. Buyers are coming in. We're getting the pop off this 180 moving average heading into earnings. And earnings are on the 27th. So, we have about a week and a half till earnings. This might continue uh before earnings, this momentum. And that's what I'm watching out for on Alta in the very short term. And let's see, Crowd Strike is another one that I'm watching that I want to come I want to see it come down a little bit more. A little bit more, guys. Uh we hit, excuse me, 227 um two days ago, two trading days ago. Now we're at 212. The stock's down about 7% from highs. That's not enough. I need to see it come down a little bit more. We're at 213 right now. If this can come down to $200 a share, maybe maybe a buck 90. Oh yeah, I think that's going to be a juicy opportunity on Crowd Strike. And they have earnings as well. A lot of these companies have earnings coming up. Um, their earnings are a week from tomorrow, same day as Nvidia on Wednesday, next Wednesday. So, keep your eyes on CRWD. I want to see it, like I said, come down a little bit more um towards about 200, 190 would be ideal. Then I'm going to start buying uh back into Crowd Strike. And the memory stocks, we'll wrap it up here, guys. I think the memory stocks, quite frankly, um are going to have more juice left. This little pullback on SanDisk looks attractive, especially if it comes down to 14,500 again. I might have to pick up some shares. I could easily see SanDisk back over 2,000 a share. And you're probably like stocks, wait, didn't you buy um puts, you know, put debit spreads? Aren't you bearish now? No, that is a hedge, guys. I still think the market could go up in the short term, right? a lot of these stocks in the short term, but just in case we dump aggressively next month, the month after that, those put debit spreads are going to help me, right? They're going to save me a little bit. They're not going to completely, you know, um recover my uh losses, but they're going to they're going to be I'll thank myself. Let's just say that. And if I add more spreads, I'll thank myself more if the market sells off. But I still think in the short term, SanDisk, Micron, these stocks potentially could see more upside. And uh we're still breaking out of these moving averages. Momentum is still shifting. We just pulled back. You know, we had a little pullback day, which is healthy. Micron, same thing. Uh the stock closed at about 940, 7% red day, but we're still holding the moving averages. We're still above the uh you know, this this trend here, which I like to see. So, what do you guys think? Let me know in the comments. Hit the like button. Let me know uh what you guys are trading, where you're at, you know, in your journey here in the market. And make sure to check out my Patreon if you want to keep up with the community in Discord on Patreon. And if you want to see my portfolio updates and all my trades, how I trade options, stocks, investments, all that stuff is on Patreon. link down below, pinned in the comments, in the bio, or go to stocksurfest.com/patreon. And with that being said, I'll see you guys in there. And shout out to all the members that have joined. Have a great rest of your