Take Retirement Easy
  • Investing
  • Stock
  • Latest News
  • Editor’s Pick
Enter Your Information Below To Receive Free Trading Ideas, Latest News And Articles.

    Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!
    Popular Topics
    • Inside Biden confidante Steve Ricchetti’s ‘combative’ eight-hour grilling in House Oversight cover-up probe
    • Recall warns some Celsius energy drink cans accidentally contain alcohol
    • Bernie Sanders to force Senate vote on blocking arms sales to Israel
    • New tech-focused MAHA initiatives will usher in ‘new era of convenience,’ improve health outcomes, Trump says
    • Crypto Market Update: Markets Pull Back After Fed Opts to Keep Current Interest Rate
    • About us
    • Contacts
    • Privacy Policy
    • Terms and Conditions
    • Email Whitelisting
    Take Retirement Easy
    • Investing
    • Stock
    • Latest News
    • Editor’s Pick
    • Stock

    Tariff Shock Spurs “Buy-the-Dip” Setups in Tesla and ON Semiconductor

    • July 9, 2025

    Just when we thought tariff talk had gone quiet, it’s back on center stage. With the reciprocal tariff deadline landing this Wednesday, President Trump has mailed out notices that new duties will kick in on August 1. Countries such as Japan, South Korea, Malaysia, and Kazakhstan face a 25% levy, while a few others may see steeper rates.  

    Wall Street didn’t take the news well. On Monday, the S&P 500 ($SPX) closed lower by 0.79%.  

    Before the July 4 long weekend, the S&P 500 and Nasdaq Composite ($COMPQ) notched fresh record highs, buoyed by solid jobs data. But like migratory birds, tariffs circled back on Monday and pushed stocks lower almost across the board.  

    Monday’s performance can be encapsulated by the StockCharts MarketCarpets screenshot below. It was pretty much red except for a few lonely green squares. 

    FIGURE 1. STOCK MARKET’S PERFORMANCE ON MONDAY, JULY 7. Besides a few lonely green squares, the screen lit up red. Image source: StockCharts.com. For educational purposes.

    Why Pullbacks Can Be Your Friend

    Stock market pullbacks aren’t all bad. They give investors and traders a chance to go bargain hunting. A handy tool is the Market Movers panel in your StockCharts Dashboard. Check the “S&P 500 % Down” category to spot the 10 stocks in the index that had the largest % loss for the trading day. Then view the charts and see if any deserve a place in your ChartLists.

    Two names that caught my eye: 

    Tesla, Inc. (TSLA) ON Semiconductor Corp. (ON) 

    FIGURE 2. MARKET MOVERS PANEL FROM MONDAY, JULY 7. From this list, two stocks worth considering as “buy the dip” opportunities are TSLA and ON. Image source: StockCharts.com. For educational purposes.

    Tesla, Inc. (TSLA): Sitting on the Fence

    While it’s clear that politics helped knock TSLA down, the chart tells a fuller story. 

    From the daily chart of TSLA below, it’s clear that the stock has seen some erratic movement recently. 

    FIGURE 3. DAILY CHART OF TSLA’S STOCK PRICE. TSLA’s stock price has danced above and below its 200-day simple moving average, and momentum is relatively weak. Chart source: StockCharts.com. For educational purposes.

    Since April, TSLA’s stock price looked like it was recovering after it broke out above its 200-day simple moving average (SMA). However, in early June it dipped below it and then went above it, and is now back below it. The June 23 high was below the end of May high. The relative strength index (RSI) and percentage price oscillator (PPO) indicate weakening momentum. The big question is where is TSLA going to find support? 

    Watch three support levels on your chart. TSLA’s stock price has moved above the first support level. Look for momentum to pick up to confirm the upside move. If TSLA’s stock price doesn’t hold at this level and falls further towards the $270 or $220 levels, similar conditions would apply. However, a significant fall in price would weaken momentum significantly and would need stronger evidence to consider going long. 

    ON Semiconductor (ON): Stalling at Resistance

    ON has lagged its chip-making peers. Over the past year, ON Semiconductor has underperformed the VanEck Semiconductor ETF (SMH). ON supplies chips to automakers and manufacturers, so its fortunes rise and fall with car demand. 

    The daily chart of ON below shows that since early April the stock price has recovered with a series of higher highs and higher lows. It is now facing resistance of its 200-day SMA, a resistance area that coincides with the February high and the early January gap down. Momentum looks like it’s rising as indicated by the slight rise in RSI and a potential bullish crossover in the PPO. 

    FIGURE 4. DAILY CHART OF ON SEMICONDUCTOR. Since early April, ON has printed higher highs and higher lows. The stock price is now hovering around its 200-day SMA, and momentum seems to be gaining a little strength. Chart source: StockCharts.com. For educational purposes.

    I would look for ON to clear $58 on strong volume and improving momentum before opening a long position.  

    Closing Position

    Add price alerts in StockCharts at each support level (for TSLA) or resistance level (for ON). When an alert triggers, re-evaluate the chart to confirm if momentum is strong enough for a price reversal and upside follow-through. 

    A short-term investment could be a better choice for TSLA since its price performance is correlated to Elon Musk’s involvement with the company. 

    ON could be a steadier, longer-term investment if the stock price breaks above resistance. 

    No matter what, decide in advance where you’ll place your stops. Then stick to your plan because discipline always wins.

    Disclaimer: This blog is for educational purposes only and should not be construed as financial advice. The ideas and strategies should never be used without first assessing your own personal and financial situation, or without consulting a financial professional.

    Previous Article
    • Latest News

    Supreme Court lets Trump’s ‘wrecking ball’ federal job cuts proceed while legal fight continues

    • July 8, 2025
    View Post
    Next Article
    • Investing

    Juggernaut Closes $1,100,000 from Institutions and Accredited Investors

    • July 9, 2025
    View Post
    Enter Your Information Below To Receive Trading Ideas and Latest News

      Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!
      Popular Topics
      • Inside Biden confidante Steve Ricchetti’s ‘combative’ eight-hour grilling in House Oversight cover-up probe
      • Recall warns some Celsius energy drink cans accidentally contain alcohol
      • Bernie Sanders to force Senate vote on blocking arms sales to Israel
      • About us
      • Contacts
      • Privacy Policy
      • Terms and Conditions
      • Email Whitelisting

      Input your search keywords and press Enter.