Video summary
Melissa Armo from Stock Swoosh reviews Intel Corporation (INTC) stock, noting that while she initially considered selling put options the previous day due to a market gap down, she opted for a conservative approach this week. Instead, she executed a successful day trade today as the stock moved directly downward, which aligned perfectly with her short strategy. The entry point was excellent, allowing her to capture significant gains as the price broke below 92 and nearly reached 91. She emphasizes that this particular sector has been heavily beaten down recently, contrasting its recent performance with the broader market where the S&P 500 made new highs just a few days ago.
The presenter highlights a significant shift in investor sentiment regarding Intel, noting that while many were extremely bullish on the stock from April through June, that outlook is no longer valid given the current market conditions. For long-term investors who entered positions during the earlier rally without buying at lower prices in April or May, the situation has turned unfavorable, resulting in substantial losses. Despite this bearish turn, Armo admits she should have been more aggressive and taken a position yesterday, but she successfully executed two quick trades in the morning before exiting, demonstrating her preference for fast-paced intraday strategies rather than holding positions overnight.
A key observation from the session was the unusual trading volume, with INTC generating three times the volume of the overall market at one point, making it an ideal candidate for options trading and day trading. Armo points out that the stock offers tight spreads and reasonable stop-loss levels, providing a cost-effective environment for traders to operate even when accounting for option premiums. The high volume and clear downward momentum make it a compelling vehicle for shorting strategies, particularly in the morning session where she prefers to act quickly on market movements.
Looking ahead, Armo notes that it is only Wednesday with two trading days remaining in the week, suggesting continued monitoring of the stock's trajectory. She concludes by inviting interested viewers to sign up for her upcoming "Golden Gap" class scheduled for August, providing an email address for registration. Overall, the video serves as a practical case study on how to capitalize on a declining tech sector trend, emphasizing the importance of adapting to changing market narratives and utilizing high-volume stocks for efficient day trading opportunities.
Read the full video transcript
Hello there, everyone, and welcome. This
is Melissa Armo with the Stock Rush
reviewing INTC.
We I thought about doing a put on this
yesterday. I wish I had, actually. I
just was trying to be so conservative
this week. Had a gap down yesterday.
Anyways, we did a day trade in this
today. And um and it went straight down,
which I love. Had a beautiful entry in
this. And got a nice push down in here,
broke 92. Could have even held it all
the way down here. Almost got down to
91. And again, this is a short. This
particular sector has been getting
clobbered. Again, if we take a look at
this,
last time this made a brand new all-time
high was 6:30, which wasn't that long
ago,
truth be told, but I mean, when you look
at the overall market, the spy made new
highs a couple days ago, and the move
that this has had, a lot of people were
extremely extremely extremely bullish on
this from April all the way up till
June.
We can't have the same opinion here now
in this. I mean, if you're long this, so
unless you had a great price down in
April or May, if you're long this
long-term, I mean, you're
you're you're down, basically. So, this
is a chart we've been watching, and
again, I I should have been more
aggressive and done this yesterday and
done a put in it yesterday, but we did a
nice quick day trade today, in and out.
We actually did two trades in this,
quick in the morning in and out. I like
to short mostly in the morning. I like
to do fast trades. Look at the volume in
this here today.
Actually, there's more volume in this in
the than in the market right now. Let's
look at the market.
Look.
That's kind of funny.
That's funny. Three times as much volume
in INTC as the market.
Crazy.
So, this is a nice stock to trade as an
option. It's a nice stock to trade as a
day trade. It's just a nice one to do
all around. Um very reasonable, tight
spread, tight stops, just, you know,
reasonable even for the cost of the
option. So,
>> [snorts]
>> we'll see See this goes. We'll be
watching this. It is only Wednesday. Two
more days left in the week. If you're
interested in signing up for the Golden
Gap class for August, email me at
melissa@thestockswish.com.
Have a great day, everyone.