SpaceX & Tesla: Buy the Dip?
It's a good day for the Democrats, who won control of Congress and the Senate in the mid-term elections.
It's not a good day for Elon Musk because SpaceX (SPCX) and Tesla's (TSLA) stock are down.
Is it time to buy? Sami shares his updated outlook:
The stock market can be crazy, jumping around based on the latest news and elections. Instead of getting caught up in the hype, it's usually better to just look at the charts. The recent wild price swings are a great reminder to trust what a stock is actually doing, not just the stories we hear on TV or online.
Bad news can be a buying opportunity. Good news sometimes happen right before a stock drops big.
Take SpaceX and Tesla, for example. They are always in the news, but the charts don't look so hot right now. SpaceX keeps trying to rally but fails, dropping below important support levels after soaring too high earlier this year. It's just not a good time to buy it. Tesla is still in a long-term uptrend, but its current chart is super messy and choppy. There's just no reason to hit the buy button.
On the flip side, crypto is looking really strong, based on Sami's analysis. Charts for Bitcoin, Ethereum, and Solana are showing much better buy signals right now than the big tech companies. There are also a few good setups popping up in individual stocks like Reddit (RDDT), Nike (NKE), and Spotify. But overall, it pays to be patient with the broader market and wait for things to settle down.
A big trap right now is trying to “bottom fish”—guessing when beaten-down tech stocks have finally stopped falling. Companies like Marvel (MRVL) and Intel (INTC) have dropped a ton. But a stock is never good just because it's down. Unless you see true exhaustion of sellers, which doesn't happen when a stock just keeps opening lower day after day, it's super risky to buy. The smart move is to wait for a real tradable bottom.
Finally, there's a funny psychological rule about trading: if everyone is bragging about a winning trade, it's probably time to sell. It's almost like jinxing yourself. When a whole group of people is cheering about a stock going up, it usually means there's no one left to buy. With no new buyers left to push the price higher, the stock runs out of gas and falls apart.
The headlines and how much you like a company don't matter if the chart says otherwise. Ignore the noise, avoid falling knives, and wait for clear, simple signals before putting your money to work.
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