I'm Eyeing 3 Stocks as Market Turns Chaotic
As Trump's tariff talk creates more uncertainty for investors, I'm watching a few names that are good values but trade extremely thinly.
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After very ugly action on Monday, the market continues to struggle on Tuesday morning with breadth of more than 3-to-1 negative once again. There are no signs of dip buying, and many stocks are going without bids.
What is going on here is a tremendous amount of uncertainty. Tariffs are going into effect against Canada, Mexico, and China, but no one knows how long they will last or what their economic impact will be. In addition, there is a great likelihood of additional tariffs in the future. Pres. Trump is sure to discuss that tonight in his address before a joint session of Congress.
The great tariff uncertainty combined with signs of economic slowing has investors sitting on the sidelines waiting for greater clarity. There may be some good values, but there is no reason to believe that the market is going to suddenly start pricing them better.
The good news is that this action will eventually lead to some great opportunities. The hard part is the timing. It is very easy to jump in too early and then keep trying to average into a downtrend. That mistake is what often leads to the biggest losses.
I have my eye on a few names that I think are very good values but trade extremely thin. For example, Delcath Systems DCTH and ADMA Biologics ADMA are stocks I like fundamentally, but the market simply does not care about valuation right now. They are both trading down and show no signs of support. I am buying very small positions, but I won’t add to them until there is better price action. I’m not going to keep adding if they trade lower.
AST SpaceMobile ASTS, which I highlighted on Monday, is trading very strongly today after a good operational update on its earnings call. This is a name that I want to continue to accumulate. I believe that this will be a major player in broadband satellite internet and is still very much under the radar.
The market continues to sink with no signs of support. My best advice is to have a shopping list ready but make only very minor buys at this point. The key to trading pullbacks is to focus on catching an uptrend rather than trying to time the exact bottom.
At the time of publication, DePorre was long ADMA, DCTH, ASTS
