Top Tuesday Trade Ideas for July 8th, 2025

Summary

In this detailed market analysis, the speaker explores the current state of the stock market, emphasizing a bullish trend despite high levels. They suggest buying on dips and focus on strategic investments, especially in companies showing consolidation and growth potential like SMLR, FedEx, and First Solar. The speaker highlights the importance of managing risk, protecting profits, and staying informed about market fluctuations. They also provide insights on specific stocks like TMC, Instacart, and Tesla, cautioning against political influences affecting stock performance while urging careful trading strategies in volatile markets.

Takeaways

• 😀 The broader market is currently high, but there is still potential for a 5-10% increase this year, making it a good time to buy the dips.
• 😀 The trend remains bullish, and buying dips is recommended, though caution is needed for positions with high margin or out-of-the-money options.
• 😀 Some stocks, like SMLR (Similar Scientific), are showing strong consolidation and volume patterns, indicating potential for upward movement.
• 😀 FedEx is bouncing off key support levels, but it is more of a long-term investment rather than a short-term growth play.
• 😀 First Solar has had strong performance with a beautiful gap and breakout, and the trend looks solid for a continued move upwards.
• 😀 TSSI has gone from a penny stock to $30 per share, showing significant momentum that should be monitored for potential gains.
• 😀 For volatile stocks like Circle Internet (CRC), pullbacks can be sharp, but the trend still suggests a continued uptrend over the long run.
• 😀 The Metals Company (TMC) shows strong buying volume and a solid upward trend, making it a stock to watch for potential profits.
• 😀 Instacart (Maple Bear Incorporated) has been showing strong momentum after earnings, with a clear bullish trend and support at previous resistance levels.
• 😀 Tesla is showing signs of potential downside with a possible double top pattern; caution is advised, especially for long-term investors.
• 😀 The market is likely to continue rising for now, but investors should prepare for a steep pullback in the next 12 months, making it important to lock in profits and stay prepared.

Q & A

What is the speaker's general view of the current state of the stock market?

The speaker views the market as being at a high point, yet believes there is still potential for further growth. They suggest that the market is trending bullish, and buying dips is a viable strategy for continued profits.

What does the speaker mean by 'old resistance, new support'?

'Old resistance, new support' refers to the concept in technical analysis where a price level that was previously a resistance level (where the price struggled to rise above) becomes a new support level (where the price tends to bounce upward after a pullback). The speaker sees this happening in the current market.

Why does the speaker recommend caution regarding margin and out-of-the-money call options?

The speaker advises caution because the market is high, and using margin or buying out-of-the-money calls could be risky in such conditions. A pullback is expected, and it is better to wait for a dip before committing to more aggressive trades.

What is the speaker's opinion on FedEx as an investment?

The speaker finds FedEx to be a stable, dividend-paying stock but not one that offers significant short-term trading opportunities. They view it as more suitable for long-term investors rather than traders looking for quick gains.

What is the significance of the 100 and 200 simple moving averages (SMA) in the speaker's analysis of stocks?

The speaker uses the 100 and 200 SMAs as key technical indicators. They look for stocks that break above these levels, as this suggests strong upward momentum. These averages serve as resistance or support levels, and a break above them could indicate a profitable buying opportunity.

Why does the speaker mention stocks like TSSI and Circle Internet?

The speaker highlights these stocks because they show significant upward momentum. TSSI has gone from a penny stock to $30 per share, and Circle Internet is described as a volatile stock with a strong potential for growth, making them interesting to watch for experienced traders.

What strategy does the speaker suggest for handling stocks in volatile markets?

The speaker suggests buying stocks on dips and quickly selling them for profit, especially when trading volatile stocks. They also recommend reinvesting profits into longer-term assets or positions, ensuring that traders lock in gains while preparing for inevitable pullbacks.

What is the potential risk the speaker sees with Tesla's stock?

The speaker mentions a potential double top formation on Tesla's chart, which could indicate a bearish trend. They advise caution, suggesting that if the stock breaks certain support levels, it could fall significantly. They recommend protective strategies, like selling puts or using collars.

How does the speaker view the broader market's potential in the upcoming year?

The speaker is optimistic, predicting a continued bullish trend with potential growth of 5-10% in the market this year. However, they caution that a major pullback, possibly 15-20%, is likely at some point, which could provide another buying opportunity.

What specific advice does the speaker give for handling profits from short-term trading?

The speaker suggests taking short-term profits from quick trades and using those profits to invest in more stable, long-term assets, like stocks or long-term call options. This allows traders to manage risk while securing gains for the future.