Pierce on Markets: 5 Stocks I’m Watching
YTD Performance: -7% vs. -3% for the S&P 500.
Where We Stand
Iran came back with a 10-point counter-proposal today. The fact that both sides are at the table is progress. But I am not buying anything yet.
Here is why.
SPY closed above the 21-day EMA today. That is good. But it also touched the 200-day moving average and got rejected. That 200-day is the line I am watching. As long as there is selling pressure there, further downside is possible. It only takes one failed negotiation in the next 24 to 48 hours to send us to a lower low below the recent 629 bottom. That is not off the table.
I want to see a clean close above the 200-day before I feel good about entering new positions. Until then, these are names I am adding to a watchlist.
5 Stocks I'm Watching
Meta (META) Trading around $570 after hitting $796 less than a year ago. The business has not changed. Every marketer still buys ads through Meta. It is finding some support on the 9-day but needs to base out before I enter. At this price, it is hard to ignore.
Mitek Systems (MITK) Small cap, $619M market cap. Plays the identity verification theme in a world where AI fraud is growing. Strong relative strength during this pullback. Finding support at the 50-day and starting to peek above its moving averages. I already have a small position and would like to upsize on further weakness.
Amazon (AMZN) Finding support at $200. Still below its moving averages but showing early signs of stabilizing on the 9 and 21-day. Long-term AI and robotics tailwinds here. A small starter position makes sense on further weakness.
Robinhood (HOOD) Dropped from $150 to around $69. The risk here is real: revenue is tied to trading volume and crypto prices. When retail investors pull back, Robinhood feels it first. I was targeting $62. The low was $63. Watching for another shot at that level.
Itron (ITRI) $4B market cap. Plays the long-term power grid theme tied to AI energy demand. The chart is ugly. It ran to the 100-day in February, got rejected hard on earnings, and has struggled to find momentum since. But valuation looks cheap. A long-term hold candidate if it finds a floor.
None of these are buys today. I am waiting for the market to prove (and Trump/Iran) itself first.
-Pierce
Founder, InvestorWaves.com
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Note: This article does not provide investment advice. The stocks mentioned should not be taken as recommendations. Your investments are solely your decisions.