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Downside Risk in Discover Financial?Discover Financial Services has come under pressure since the summer, and traders may see risk of further downside. The first pattern on today’s chart is the pair of high-volume bearish gaps. The first occurred on July 20 after earnings missed estimates. The second occurred on August 15 after its CEO unexpectedly left the company. DFS failed to recoup either drop, which may reflect a lack of dip buyers. Second, the series of lower highs since mid-August could be interpreted as a descending triangle. Third, the stock has crept below its October 2022 low of $87.64. Remaining under that level could potentially result in more selling. Finally, the macro environment may be difficult with credit-card losses increasing as the Federal Reserve gets more hawkish. That could be especially important with earnings due in about a month. TradeStation has, for decades, advanced the trading industry, providing access to stocks, options, futures and cryptocurrencies. See our Overview for more. Important Information TradeStation Securities, Inc., TradeStation Crypto, Inc., and TradeStation Technologies, Inc. are each wholly owned subsidiaries of TradeStation Group, Inc., all operating, and providing products and services, under the TradeStation brand and trademark. TradeStation Crypto, Inc. offers to self-directed investors and traders cryptocurrency brokerage services. It is neither licensed with the SEC or the CFTC nor is it a Member of NFA. When applying for, or purchasing, accounts, subscriptions, products, and services, it is important that you know which company you will be dealing with. Please click here for further important information explaining what this means. This content is for informational and educational purposes only. This is not a recommendation regarding any investment or investment strategy. Any opinions expressed herein are those of the author and do not represent the views or opinions of TradeStation or any of its affiliates. Investing involves risks. Past performance, whether actual or indicated by historical tests of strategies, is no guarantee of future performance or success. There is a possibility that you may sustain a loss equal to or greater than your entire investment regardless of which asset class you trade (equities, options, futures, or digital assets); therefore, you should not invest or risk money that you cannot afford to lose. Before trading any asset class, first read the relevant risk disclosure statements on the Important Documents page, found here: www.tradestation.com .
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by TradeStation
Searching The Ocean Floor For Beaten Down StocksInvesting in beaten-down stocks can be a tempting prospect, as these stocks often come with the allure of potentially high returns at a discounted price. However, it's essential to be aware of the risks associated with such investments. Beaten-down stocks typically belong to companies facing significant challenges, whether it's poor financial performance, management issues, or adverse market conditions. With that being said, I don't ever think it's a good idea... Unless... You think you've found something that the market has totally miscalculated in its valuation. I am not a believer in efficient markets, and thus, I must occasionally believe that bargains are possible. The companies on this chart are all beaten down stocks. I'm not saying that they are buys or sells. Just that they are on my watchlist. It seems that one or two of these may be totally misvalued. I need to do some research. I don't know enough about these companies, but they are now on my watchlist. Here's a brief overview of the symbols listed: Desktop Metal NYSE:DM - This 3D printing company experienced a rollercoaster ride in its stock price due to the volatility of the tech sector. While the potential for revolutionary technology is there, investing in a beaten-down stock like Desktop Metal carries the risk of prolonged losses if the company's products fail to gain widespread adoption or if competition intensifies. Expensify NASDAQ:EXFY - Expensify is in the business of expense management software, a niche that is subject to market fluctuations and competition from larger players. Buying beaten-down Expensify stock may lead to losses if the company struggles to differentiate itself or if its customer base doesn't expand as expected. Canopy Growth NASDAQ:CGC - As a prominent player in the cannabis industry, Canopy Growth faced regulatory challenges and market volatility. Investing in this beaten-down stock entails the risk of ongoing legal and regulatory hurdles, which can significantly affect the company's performance. The cannabis industry also faces competition and supply chain issues that could impact profitability. Vimeo NASDAQ:VMEO - Vimeo, a video-sharing platform, competes in a crowded market alongside giants like YouTube. Buying beaten-down Vimeo stock carries the risk of underperformance if it fails to capture a significant share of the market or if user engagement doesn't meet expectations. Allbirds NASDAQ:BIRD - They make shoes... they had a euphoric moment, but it's been nothing but down ever since. Closed stores and more. I still see people wearing them and their material is unique. I don't own a pair, but I need to check the shoes out a little more. That's all. Update coming in a few months.
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by scheplick
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