Here’s your trade on On Semiconductor ($ON) – November 1, 2023
This is Dan Fitzpatrick with FITZ IN FIVE. First of all, I am looking at a bounce play on ON Semiconductor ( NASDAQ: ON ).
As you probably know, or maybe you don’t, they reported earnings that absolutely really sucked. And the market rewarded them with a 22 percent drop in a day. I was tempted to buy this into the close just because of the idea of, well, it’s gone down enough, but actually it hadn’t gone down enough, it kept going.
Then yesterday, this was on Tuesday, the 31st., the stock fell a bit more. It kind of stabilized but it was definitely lower than it had been on the prior day. And so I watched this yesterday, and then, again, a bad close. Then today, it opened right around where it closed yesterday, it was up or down a penny or two, but then it was strong all day, right here. So this is the turnaround for me.
If you are a bounce trader, if you like to buy these oversold things, you have got to understand that this is way outside the second Bollinger Band, which is against the law, in statistics. So you have got to look at this, still, as a buying opportunity. The way you could do this is, you are buying this stock here and then you’ve got a stop slightly below today’s intraday low of 61.47, you can put it at 61.46 if you want.
The bottom line is, that you just don’t want to be in the stock if this is not the low, so you can check that out.
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