Hey,
Charles here.
Andrew Giovinazzi ran his scanner through this mess of a market and came back with two names going in opposite directions.
One is a delivery company quietly climbing while everything else bleeds.
The other is a former tech darling sliding toward 52-week lows with no floor in sight.
Same turbulent tape, two completely different stories.
The thread connecting them: Andrew wants to own what's working and avoid what isn't, no matter how cheap it looks.
Here's his breakdown.
Deliver Me a Good Name, Please
Last-mile delivery companies continue to surprise me.
I went to the local McDonald's a few weeks ago and saw a pile of bags in the ready-to-go section for Uber Eats. People actually use DoorDash and Uber Eats for fast food in a bag.
I was blown away.
That brings me to Instacart (CART).
The company has some ridiculous name like Maplebear Inc., but the stock is making higher moves while most stocks have been suffering.
1 YEAR CART
The company has had decent revenue surprises too. The stock has moved from the low 30s to the low 40s but was as high as the low 50s.
For now CART works for people who need delivery, and they can make decent money at it. My mom uses it for weekly grocery delivery.
Right now, I want to buy stocks going up with all of this market turmoil around. Last-mile delivery is here to stay.
A Once-Great Name on Hard Times
My sale idea on BP (BP) was not bad last week. Surprisingly, oil stocks have not made new highs since then even with oil prices continuing to rally.
Another stock having a hard time in a totally unrelated industry is Qualcomm (QCOM).
Qualcomm was one of the first crazy tech stocks I remember trading when it almost took down a whole floor trading firm back in the 1990s.
At this point it has its sail lashed to mobile devices, and the company is 10 times bigger than it was in the late 90s. Right now it's dangerously sliding to 52-week lows.
QCOM 1 Year Chart
Generally I avoid buying stocks melting to 52-week lows. QCOM is in that category right now.
Anything around $100 would be a bargain. I don't think it gets that low, but the negative momentum is slow and steady. That's the dangerous kind for bulls.
To Your Trading Success,
AG
So there you have it: A delivery stock climbing while the rest of the market can't find its footing, and a chip giant sliding with no catalyst to stop it.
Andrew’s filter is simple right now: own what's going up, leave what isn't, and don't try to be a hero catching a falling knife on a name like QCOM until something changes.
The real question: what will the team pick on Monday?
Join the Ticker Highlight Show Premium before Monday at 10:30 AM ET to find out.
See you there,
Charles Delvalle
Managing Editor, Option Pit