SMCI is technically attractive at current levels due to chart position and fundamental growth, supporting a bullish view for entry.

Do you remember this company called SMCI? They used to manufacture servers for Bitcoin mining. Well, they have changed course slightly towards a different line of work; They manufacture storage units and servers for artificial intelligence technologies , and I think it is a good and appropriate step at the present time and under the current market conditions.

Okay, the second stock today was SMCI, and we are using what is called the rocket strategy. So, when the market is up (green), and it turned green a few days ago, and when the stock is also up, it means you're stepping on the gas pedal a little.

That's what I'm looking forward to doing . Here we give it a rating according to the " Cash Flow Machine" system, which shows what I look forward to doing. These are weekly options.

but it seems to me that SMCI is at an ideal starting point on the chart. I am not telling you to go out and buy this stock. I would say that this is the point at which you begin your research, isn't it?

So I look at SMCI stock and say, "Okay, I can buy the stock at around 4213, at least according to this scanner." I will proceed with the sale four days before the expiry date. This is a relatively short shelf life.

It expires on Friday. Today is Monday, so we have about three and a half to four days. Actually, it's 3:30 now, so we'll see what happens. I am looking forward to executing the call option at $43 for October 2nd. The stock price is currently 4213.

To fully appreciate the implications of this option, it is slightly out of the money . That's why it's called the " missile strategy". We want the stock to rise a little like a rocket .

If our execution price exceeds $43, we achieve our maximum profit on the deal. Then, if we want to stay in the deal, we can postpone it or let it go through if we don't want to .

If you're new here, what we do is basically buy an asset and then lease it to someone , right? Therefore, we give someone the option to buy our shares at a predetermined price before a predetermined date.

The price here is 43 and the date here is October 2nd. So we give someone, you know, four days, but in exchange for giving them these four days, we get something, and that something is our income.

We call it here " the yield" (Juice), and this yield is currently, as you know, about one dollar and six cents, okay ?

This tells you how we view the matter, and then you can see the percentages and all that stuff. As for the annual percentage, don't get too excited about it. It is simply a way to compare an option that expires in four days with one that expires in 40 days, because it calculates it on an annual basis, and it obviously doubles it; It amplifies it much more when the idea is that you can do it over and over again, you know, and at the end of the year you'll get this.

But the idea is that it gives you something to compare it to. If the stock is called in this session, this is the percentage.

Thus , the stock is green because we have this market timing component that classifies stocks, and gives four criteria for determining whether it is green. This stock achieved four out of four.

Did it meet the criteria for preferred shares? Yes. Is it the return on shareholders' equity? It's very good. We would like to see 17, but it's 15. That's okay. The open interest on options is very good.

Then we have a circuit breaker, because it is very important to set stop- loss orders, isn't it? As you know, you want to keep your losses small and let your profits grow substantially.

Therefore, I like to enter a stock that I want to hold for a long time. Therefore, I try to buy it relatively early in its upward trajectory.

Now, SMCI faced some trouble two years ago due to some accounting issues and irregularities, and the stock price fell. That seems to be a thing of the past. By the way, this is not investment advice.

This is where you begin your search. That's how you should look at it. So, that's how I see it. I have a stock I'm interested in. I have done the research. I know what the company does.

I like what they do. So, I have the right stock.

You can see our four-cornered system here. You are trying to find the right stock in the right market. I'll give you a quick overview. This is the right market. You will see that it has turned green, and you can see that it is the third day of the bull market.

This is a short-term trend that tells you the environment is favorable, and you are likely to succeed if you buy in a market that is trending upwards. Right now, today it doesn't seem to be going up because it's low.

But markets don't move up and down forever, you know. They do n't stay in their trends forever, and they don't stay low forever. Therefore, I believe we are in a rising market.

This means there will be some selling days, but there will also be many buying days. So, the odds are in favor of that day. Good. So, we have the right market.

Now, I want to look and see what the appropriate point is on the graph. So, I go to my "Pattern Wreck" app and open the SMCI arrow. Let's first take a look at the basics that appear here, okay?

Regarding sales, you see the stock moving from 15 billion to 22 billion to 39 billion. That's a big jump to 67 billion and then 79. These are all estimates here in the last two years.

So , it is growing at double-digit rates. I love binary numbers, don't you ? It was triple digits in 2024, which is why the stock performed incredibly well. However, two-digit numbers remain fairly high most of the time .

Then we look at their profits, and we find that they also consist of high double-digit figures . You can also view quarterly sales and quarterly profits. Earnings per share for three years reached 18% annually, and sales for three years grew at a rate of 76% annually.

The return on equity here says it's 25, so I need to check that. The average true range of the stock over the past few days, I mean the past 14 days, is about 5.5%. Therefore, it has some movement, and the more movement there is, the more profits there are, but of course, the downside risks also increase.

Look, the danger is not on the upside. So, those who have sold covered call options, and believe that the risk lies in the upside, and that the stock continues to rise , that is what we want.

We want the stock to rise because that means our underlying position, usually our stock position, also rises. Yes, you may have to use some working capital to roll over to a higher execution price, but what business doesn't use working capital, right?

Therefore, I view it as working capital for upward circulation. If you do not wish to rotate upwards, simply exit the center. You are in a good position . Anyway, I like the basics here.

Let's get rid of this, and take a look at the graph. I'll take a look at the chart, and you'll see this pattern. Let me enlarge this for you a little. Ah , okay. Now let's round up.

Here's what we have at the moment. You can see this rise on the daily chart of the stock at 51.40, and it has dropped as low as 23. It's not fun to put up with that, regardless of whether you are getting profits from covered call options or not.

This is a significant decrease. But now the stock has gotten rid of the sellers, and we had a small upward gap here . We have built a little cohesion. It's what I call a new rule.

Therefore, it lies directly below the point of penetration. Therefore, this is a very good time to enter the stock.

This tells you a sort of prediction for the expected range of movement. Currently, it is in the middle of the expected range of movement of eight or two of the average true range, that's what I call it.

That's how I see it. So, I look at this stock as something that, you know, I would like to hold for the long term as long as it continues to perform well .

These points on the graph, for me, represent charts with a higher probability of success. There are no certainties in the market. There are only possibilities, aren't there? Thus, what we are trying to do is find the best point on the graph.

What we have observed and studied, you know, from William O’Neill , and people who have studied stocks going back 140 years , is that what happens is that these buyers and sellers take turns trying to decide who is in control, isn’t that right?

Then they reach these small turning points. Yes, it is a previous high swing point , as we have here at 42.31. Currently, the stock is also around this level . So, you see the stock here at 42.02.

You say to yourself, "Well, maybe he's ready to hack in." Now, remember that 40% of all hacks fail. But this means that 60% of them, if formed correctly, will succeed.

Here we have a Genius Power Index at 91, which means it is currently outperforming 91% of the stocks in the database in terms of relative strength and what we call our Genius Index , which indicates that the stock has received the green light.

So, this is what we look for in any stock. And I really think it looks good to me. If it looks good to you, this is a good starting point to begin your search.