Trouble Ahead for AMD?As we can see, an ascending wedge pattern has clearly formed on the AMD 1 YR chart. This means we could be in for some bearish movement going forward.
After having traded in a tight range between $89-$99 for over a month now and constantly getting rejected at the $99 level, it is hard to say we might breakout over $100 after the next earnings report which is to be released on the 26th of this month.
Fundamentally, the company could give out some great news and a stellar earnings report, but I would ask for you to trade this cautiously considering the technical analysis shows otherwise.
That being said, if you are bullish;
BTO Feb 5th $97 Call ($6.13) (Do not hold into earnings, I say this with experience, unless you want to gamble)
But if you're bearish;
BTO Feb 5th $90 Put ($3.7)
Good luck trading!
Semiconductors
ATOM Sign Joint Development AgreementAtomera and Market Leading Semiconductor Company Sign Joint Development Agreement for Use of MST in Future Devices.
entered into JDA with a leading semiconductor provider for integration of Atomera's Mears Silicon Technology (MST) into their silicon fabrication process.
Atomera's MST is a patented, quantum-engineered material that enhances transistors to deliver significantly better performance in today's electronics.
New collaboration will leverage Atomera's transistor enhancement technology to develop improvements across the manufacturer's production lines
finance.yahoo.com
SiTime makes the digital world go roundIf you have ever done an electronics project, you probably either built your own large timing circuit or utilized a quartz-based crystal oscillator in a square silver package with four legs. An oscillator is used in some form in most every electronic device you use.
Think of the computer in front of you. It likely has a dozen or more oscillators integrated into the core processor, memory, wireless radio, LCD screen, trackpad or mouse, and all the components that coordinate between these parts. Each needs an accurate way to generate frequencies and measure time.
Beyond the computer are devices as simple as a stylus for a tablet computer, the tiny wireless earbuds for music, a smart watch and programmable lightbulbs. And there are devices as complicated as new all-electric autonomous-driving cars, airplanes, satellites and rockets. All of these devices are requiring smaller and smaller components.
And that's the whole game with the semiconductor industry. Smaller. Faster. Cheaper. And with timing solutions it's also about More Accurate. Timing solutions are tricky, because they have always been very sensitive to vibration, temperature, and other jitters that cause inaccuracy. Quartz has been able to handle most of these applications up to a point, but its running into several limitations:
1) Quartz is sensitive to extreme temperature and vibration
2) It requires a ceramic container that increases its size
3) They are built for a specific purpose and lack programmability for new uses
MEMS Timing Solutions
That's where MEMS timing solutions come into play. MEMS stands for MicroElectroMechanical System. A MEMS solution is anything that combines mechanical moving parts with electronic signals in a very small device. MEMS circuits that you see every day include displays, tiny microphones (in your phone), accelerometers.
MEMS timing solutions have been in research and development since the 1960s, but the first commercialized product was sold by SiTime in 2006. Since then, SiTime has been 'chip'ping away at quartz oscillator solutions to gain market share. But recently, there has been increasing demand for MEMS solutions. Here's just a few:
1) Smaller and smaller devices
2) Devices used at extreme temperatures
3) Industrial devices that endure high vibration
4) High frequency radios required for 5G
5) Low latency for things like natural stylus writing
SiTime
1) First Commercialized MEMS Oscillator in 2006
2) Competitive strengths in Performance, Size, Low Power, Programmable, Quality/Reliability, Rapid TTM
3) Market Cap: $1.9 billion
4) Shares in Float: 5.4m (of 16.9m)
5) 143 Employees at end of 2019
6) 59 patents for MEMS manufacturing and design
7) EPS last three quarters: -0.14, -0.14, +0.23
8) YoY Sales last three quarters: 47%, 36%, 29%
Technical
1) Up 590% since IPO in November, 2019
2) 5.5% down from all-time high on December 17
3) Deep cup and handle formation from early November
ATR Buy Point
Buy Point: 114.56 (last daily high + 10)
Stop Loss: 97.58 (14.82% based on 10d ATR x2.7)
Position Size: R6.75
MU Wave 5Micron Technology Inc. (MU) broke out of wave 4 consolidation. Bullish engulfing candle with an association of high relative volume is key signal this a true breakout. Indicator confirm breakout with cross in StochRSI, TMO, and daily squeeze breaking out. Prior to breakout, Micron held the 21 ema with a hammer candle. Earnings at 1/7/21, so look for run up and momentum continuation.
potential breakout off an earnings baseNASDAQ:IPHI Solid fundamentals with a very constructive base forming. It recently made a small move up while finding support. The ATR is showing a vey tight trading range with well below average volume and good relative strength. I will be looking for a break out entry through 162.20 area against the 157 area.
TSM Long 12/23/2020TSM is a leading chip maker for some of the largest tech companies on the planet, including Apple, Sony, Huawei, Qualcomm, and others.
It is pushing new all time highs & I bought in anticipation of a breakout to those new highs. I got long half of a position @ $104.14 with a stop @ $101.75. I didn't feel comfortable putting on a full sized position going into year-end, but if the trade continues to work for me, I am looking to add. With an initial stop loss of ~2.3%, I am looking for at least a 5% move from my initial entry price, which is roughly the $109.50 level.
Copper Outlook /long-term Technical Analysis
We have broken the long-term resistance trend that had been in place for almost 10 years.
RSI is very overbought, but this market has proven overbought can stay overbought for a long period.
In the chart there is 3 potential targets for Copper in the long-term picture.
There are several place to take profits and/or add on pullbacks. (These are the orange segment lines)
Fundamental Analysis
Industrial metals have been rallying strong; and are likely to continue with expected infrastructure investment for 2021 and further.
Copper is also used in Semiconductors, which is the basis of all technology hardware.
Steel is behaving in a very similar fashion, adding to the idea of industrial metals outperforming precious metals.
Taiwan Semiconductor Manufacturing. A Must Have for 2021.TSM has continued its bullish uptrend since March following the rest of the stocks in its sector. In the past month, it has swerved past the $90 resistance that has been holding it down and continued an even steeper uptrend. The uptrend channel looks strong and has only shown weakness back in July. Surrounding the stimulus news and the fact that it has been a major player in helping Apple produce its own chips is what is moving this stock upwards.
TSM has room for upside in my opinion but taking a long position right now might not be sustainable. The Fibonacci retracements show the closest support level is between $89-$93.
Given the current market conditions along with vaccine news and stimulus, I would wait and see if the current uptrend holds.
A drop to $89-$93 is what I am looking forward to in order to take a long position and set a stop loss limit at $80.
My PT for 2021 is $130.
AMD - option trade of the week by Argusbuy-to-open calls strike at 100 expired Jan 15,2021.
quote from Argus: "Over the past month, the AMD shares have rallied back to the top of the four-month price range near $94. A strong breakout above the top of the range could lead to a significant rally well above $100 based on the size of the sideways consolidation."
Skyworks Fights Back Above the 50-day SMASemiconductors have remained one of the strongest corners of the market. Now Skyworks Solutions could be ready to join the rally.
The iPhone supplier has struggled with insider selling despite beating estimates on November 2. But its chart is looking more bullish lately.
The first signal was MACD turning positive back on November 30. That was the same day Morgan Stanley and Loop Capital issued bullish notes on iPhone 12 demand. SWKS gets about half its business from Apple.
Next, SWKS is just now climbing above the 50-day simple moving average (SMA) after testing it for three sessions.
Finally, the chart resembles a cup and handle. September’s low is the cup and November is the handle. That’s a classic continuation pattern investors seek in a growth stock like SWKS. After nearly six months of going almost nowhere, it could be a sign of momentum coming back.
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MU ShortAfter a golden cross with the 50 and 200 SMA NASDAQ:MU has pushed up into overbought conditions on the RSI leaving quite a mess as it stretches. Now at all time highs, I believe that it is a good time for a short. With lots of buying pressure in the last couple of days some consolidation is expected. Semi-conductors have been a strong play during 2020, however with a strong bid for Energy yesterday, I believe it is time for past due rotation for the continuation of the unprecedented bull market that has been carried heavily by tech centric stocks. The MAC-D is attempting to double extend to the upside for the first time since September and March lows, and with the overbought conditions it is safe to say that this move will likely be quickly rejected. My first target for MU is support at 61.68 and my second target is the gap up from 58.12 to 59.57. Note that the former highs are at 64.66 and this might serve as a testy area for MU.
Nvidia Had a Bullish Outside CandleBig tech stocks have been snoozing since their frenzied peak in early September. But yesterday, one of the biggest names showed signs of waking up.
Nvidia traded down to $518.89, under Friday’s low. It also traded up to $536.50, slightly above Friday’s high. That’s a bullish outside day, a potential sign of buyers getting active.
The low was also noteworthy because it occurred along a trendline running along NVDA’s lows since early September.
Stochastics were also oversold near the bottom of the range but are now climbing.
Third, current prices are right on top of the 50-day simple moving average (SMA) and 21-day exponential moving average (EMA). Trending stocks have a tendency to move away from their moving averages when the trend resumes.
NVDA’s fundamentals have also been strong, with earnings and revenue beating on November 18. It drifted along with other big tech stocks, but the Nasdaq-100 has recently tried to break out. Will the bulls look to NVDA next?
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AMD over 88.72Shown here on the weekly view, it made a higher weekly high confirming a weekly breakout. Lots of eyes on this one and large order flow, 6th most bullish by volume on CheddarFlow with 195 orders totaling $25.2m. But as its been faking us out recently, a break over October's high to confirm a monthly breakout is a more conservative entry. Most institutional orders are for 12/18 strikes 85-90, or 12/15/21 strikes 95 and 100.
TSM Long from Q2 2021. TP 120Monthly
Strong uptrend.
I think for now its too much overheated.
Correction is needed.
Weekly
Wave 5th is finished.
No reasons to open long Now.
Better from end of correction. I think from Q2 2021 - will be good entry.
Daily
I expect Double TOP - people will try to get 100, but failed again.
Also weak Earning in Q1 2021 = decline. ABC correction.
Open LONG in Feb- March. from 82
SL 75
TP 120
RR 6