Think CrowdStrike ($CRWD) is a great buy here? Maybe. But the question should be “how high can I expect the stock to go AFTER I buy? – August 8, 2024
Dan Fitzpatrick here. Let’s look at CrowdStrike ( NASDAQ: CRWD ).
You know what the deal was, they just created all manner of bad things; do you guys not have a development platform or what? Anyway, they just put out this update that turned out to have, shall we say, some things in it that weren’t really good, we’ll call them cyber gremlins.
The stock imploded and it kept going down, and kept going down, until finally, on Monday, like the rest of the market. it imploded first thing on Monday morning, like the rest of the market. Everything hit bottom on Monday morning, so CrowdStrike ( NASDAQ: CRWD ) did as well.
It starts running up, and you can say, Well, that’s the low, and it did take a 50 percent haircut, that goes from hippie to butch, 50 percent in almost the same month. This thing looks like it’s hit a bottom, and maybe indeed it has.
However, for you to be looking at this and saying, Okay, this is an awesome buy, I’ve got to buy this stock right here. Check it and see first because maybe you don’t want to buy the stock, maybe you do. But if you do want to buy the stock keep your eye on these three things here.
By the way, you’re getting this video and you’re going to see a fourth thing, so I will either look like a smart guy or an idiot. But my sense is, this stock is not just going to keep going up because that’s not what the market’s doing. My sense is, we’ll see if I’m right, we’ll probably have the stock trading in this general range, somewhere like this.
And again, I could be wrong because I’m surmising here. But the reason I’m looking at it this way is a couple of things. First of all, if you’re looking to buy this dog company, then that’s fine, but don’t feel like you’ve got to buy right now. I think you’re going to get a better opportunity.
But also, look at these three patterns here, it goes on every single thing, Monday, Tuesday, Wednesday. Microsoft ( NASDAQ: MSFT ), and Google ( NASDAQ: GOOGL ), are all doing the same exact thing. The QLD ( NYSEARCA: QLD ) is doing the same thing as the Qs, only twice as much.
They’re all doing the same thing. I don’t know whether they’ll ultimately test this low or certainly surpass the low. I would be surprised if they do, actually pleasantly surprised because I’m basically in cash. Not basically, I am in cash in my trading account. I’m actually hoping that this thing implodes, like down to zero would be a wonderful thing, but we’ll wait and see.
The bottom line is this, we’ll see if I’m right. But I would avoid CrowdStrike ( NASDAQ: CRWD ) right now because I’m just wondering, what’s the potential upside in it from here, versus, the potential downside where it could pull back? And if you’re buying a stock at a particular time and price, you’re buying it because you think it’s going up.
Well, if it starts going to other way you have to open your mind to the possibility, that you know what? You could actually be wrong about it.
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