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Facebook (Daily Chart) - Not Looking GoodSince its highs 2 months ago, the price of Facebook has declined about 36%, which is almost 1/3 of its value. This is surely not a good sign. To make things worse, the probability of further decline is pretty high. After forming a double top (it could also become a H&S instead if it forms a right shoulder), the price has also broken the neckline, which by most measures would put it strongly in bearish territory. It will very likely have some sort of rebound soon, but I will be hesitant to buy for the long-term until winter is over.
NASDAQ:METAShort
by SynapseTrading
1
If I Could Buy One Stock for the Next 5 Years,It Would Be NVIDIATake a look at its 720% surge since 2016. Now I know you might be thinking: Stephen, this stock has already had a heck of a run… why buy it now? I understand the concern. But when investing in truly disruptive companies , this way of thinking is often a mistake. From 2009–2013, Amazon (AMZN) stock gained 680%. Most so-called “experts” said the easy money had already been made. In 2013, CNN “reported” that “Amazon is one of the most overvalued stocks.” Amazon has soared another 700% since 2013. Nvidia Makes High-Performance Graphic Processing Units Nvidia developed the first mass-market graphic processing unit (GPU) in 1999. GPUs use what’s called “parallel processing,” which allows the chips to perform millions of calculations at the same time. That’s different from the way other computer chips work. Most computer chips, like the one powering the laptop or phone you’re reading this on, calculate one by one. At first, GPUs were mostly used to create realistic graphics in video games. Remember the blocky Nintendo graphics from the early ‘90s? The ability of GPUs to process huge amounts of data all at once helped create the movie-like video game graphics you see today. GPUs Are Ideal for “Training” Artificial Intelligence I’m sure you’ve seen the Hollywood movies about AI going rogue and attacking humans. In reality, AI isn’t that glamorous. It all comes down to processing massive amounts of data. Show a computer millions of pictures of a stop sign, for example, and it will learn to recognize stop signs on its own in the real world. AI is the driving force behind Google’s self-driving car subsidiary Waymo. As I recently discussed in the RiskHedge Report , Waymo’s robot cars are cruising around America’s roads right now. At the core of Waymo’s self-driving car fleet is a centralized “brain.” It has learned to recognize stop signs, pedestrian crossings, red lights, and all the other obstacles that human drivers navigate. The Likes of Amazon, Google, and Microsoft Use Nvidia Chips to Train Their AI The faster a computer can process data, the faster it can “learn” by recognizing patterns in the data. Nvidia latest chips process 125x faster than traditional computer chips. They can process 125 trillion data points per second… which slashes AI “learn” times from eight days to eight hours. This is why more than 2,000 companies including Amazon, Google, and Microsoft use Nvidia’s hardware to “train” their AI programs. Last quarter, the revenue Nvidia earned from selling AI chips and hardware jumped 82%. In the last two years, AI-related sales have accounted for over 70% of the surge in Nvidia’s revenue. AI sales now make up 24% of its total revenue. Most Self-Driving Car Companies Use Nvidia’s Products As I mentioned, Nvidia supplies self-driving car companies with chips that “train” cars’ brains. It also sells hardware that processes data from the cars’ many cameras and sensors. For example, Nvidia’s self-driving supercomputer, named Pegasus, can tackle 320 trillion operations per second. And it does so using one-third the electricity at just one-fifth the cost of its closest competitor. Over 370 companies working on self-driving cars now use Nvidia’s products. Auto sales make up just 5% of NVDA’s total revenue today, and I see this exploding higher over the next few years as true self-driving cars roll out. I mentioned earlier that $100 billion has been spent on developing self-driving cars so far. With the likes of Google and Apple pouring billions into driverless projects, I see that jumping to $1 trillion over the next two to three years. Thanks to its superior technology, I expect Nvidia to capture a large chunk of this. It’s a “High-Flying” Tech Company, but Extremely Profitable Nvidia is nothing like many of the barely profitable tech darlings (like Netflix) out there. While many high-flying tech stocks get by on stories and hype, Nvidia is extremely profitable. It has a net profit margin of 33%. That is, for every $1 in sales, $0.33 becomes pure profit. That’s better than Google’s 21% margin… and even Microsoft’s 29%. Nvidia’s high margins allow it to continually pour cash into Research & Development (R&D). It reinvests close to 20% of its revenue into R&D every year, which is a key reason why it has blown away its rivals. Nvidia is financially sound, too. It’s sitting on a record $7.95 billion in cash. Which is enough to pay off its total debt four times over. Why I’m Not Concerned About Nvidia’s Price-to-Earnings (P/E) Ratio of 39. Can buying a stock at such a high valuation be risky? Sure. But Nvidia deserves its rich valuation. Nvidia’s earnings are growing at almost six times the rate of the S&P 500. Yet its P/E ratio is not even double the S&P’s. I think investing in a company like Ford (F), with a P/E of 5, is far riskier than buying NVDA. I can hear the groans coming from the value investors out there. But the fact is, Nvidia is leading the self-driving revolution… while Ford is going to get crushed by it. Because it is powering today’s most disruptive trends, I see Nvidia doubling over the next two years.
NASDAQ:NVDALong
by StephenMcBride
1
Monday to give direction on SQ for the coming weeksSQ 4hr chart equilibrium break will give direction for the coming week - breaking up above 92.39 increases confidence in continuation to new all time highs this week, and a break of 89.31 will have us looking to test 83.34 as a daily support. The weekly chart is getting extended with 6 green weeks in a row and a bearish reversal spinning top doji on declining bull volume. If we do lose daily support, consolidation on the weekly would be very healthy so long as the bulls can hold the MA20, somewhere around $70 next week, and do it on decreasing bear volume. Weekly support is 63.21 and is nowhere near at risk of being lost
NYSE:SQ
by McGuireTO
Alibaba Growth PotentialAlibaba Group Holding Ltd. NYSE:BABA reported fiscal first-quarter net income of $1.31 billion. On a per-share basis, the Hong Kong-based company said it had profit of 50 cents . Earnings, adjusted for one-time gains and costs, were $1.22 per share. The results just fell short of expectations . The online retailer posted revenue of $12.23 billion in the period, which also fell short of Street forecasts. Analysts expected $12.25 billion. Alibaba shares have increased 3 percent since the beginning of the year. The stock has climbed nearly 2 percent in the last 12 months. But there is another side, since the stock price ranges from 165.00$ to 210.00$ from the beginning of the year and is now trading near the support line, there is growth potential to upper line of the channel at 210.00$. And if the stock can breakout, we coul expect it to reach 235.00$ level.
NYSE:BABALong
by iglanbo1899
2
XLK Elliott Wave Analysis Suggesting More UpsideHello Traders, In this Elliott Wave analysis, we will have a look at the Technology ETF. The ETF ended the cycle from 06/28/18 low in red wave 1 at the peak of 07/25/18 (74.26). The internals of red wave 1 unfolded as a 5 wave Elliott Wave impulsive structure. Where black wave ((i)) ended at 06/29/18 peak (70.08), black wave ((ii)) pullback at 07/02/18 (68.73). Followed by an extended black wave ((iii)), where the internals also unfolded in a 5 waves structure. Black wave ((iii)) ended at 07/13/2018 peak (72.72) and black wave ((iv)) pullback at 07/16/2018 (71.68) followed by black wave ((v)) of red wave 1 which ended at 07/25/18 peak (74.24). Below from that peak, the correction in red wave 2 ended at 07/30/18 low (70.30). The internals of red wave 2 unfolded as Elliott Wave Flat structure where it ended black wave ((a)) at 07/26/18 low (72.68), black wave ((b)) pullback at 07/26/18 peak (73.35) and black wave ((c)) of red wave 2 at 07/30/18 low (70.30). Up from there, it ended the cycle from 07/30/18 low at the peak of 08/09/18 (73.91) in black wave ((i)). Below from there, it is currently in the progress of correcting the cycle from 07/30/18 low in 3-7 or 11 swings before moving higher again. Near-term focus will be on the 100%-123.60% equal legs extreme area of 72.45-72.15 from 08/09/18 peak where we expect a reaction higher for new highs or at least a 3 wave’s bounce. We don’t like selling it and prefer more upside as long as the pivot at 68.28 low in our distribution system stays intact.
AMEX:XLKLong
by Elliottwave-Forecast
FB - Selling premium in high IV environmentThe day after earning I sold 160 strike naked puts for $2.74 credit each. These options have a 30 delta at the time. This is a neutral to bullish strategy. The idea behind this trade is a contrarian play into high implied volatility. The idea being that after such a massive selloff the bears will exhaust soon and we will see a pop in price and volatility will come out of these contracts when that happens. My defensive strategy will be if FB continues to fall and breaches the break even of my short puts I will then convert this trade into a short straddle, selling the 160 calls, which will neutralize the deltas (reduce directional risk), and will also collect premium to further extend my break even and reduce cost-basis.
NASDAQ:META
by krugman87
TECS Move above $23.00 is a clear breakout playTECS could move aggressively higher over the next few days and my analysis shows any move above $23.00 could be a very strong upside play for at least 5+ days. I'm not suggesting this downside move in the technology sector will last long, but I am suggesting that critical support is still quite a bit lower than where prices are right now. Take a look at my recent QQQ post to understand the downside risk of further weakness. I believe an entry in TECS now would be a good play with a stop near $19.85. Any weakness will likely be identified quickly while the long term downside potential may play out over many weeks. Could be a +25% move here soon.
AMEX:TECSLong
by BradMatheny
My thoughts on DBXCurrently I'm in July $33 and August $32 calls just waiting patiently through the whipsaw. But technically speaking it looks like DBX needs to clear the 33.23 area in order to really gain some momentum to the upside. The candle on July 11, 2018 could quite possibly be a morning star reversal if DBX can break out of its triangle. Line in the sand is obviously losing the low of July 11th's candle and/or the lower trend line. Let's see what she does! Would be nice if DBX was bought out in the next 1-2 months ;)
NASDAQ:DBXLong
by brianweber
1
Where I'd like to pick up some MDB shares$MDB is a great company and I like the technology (I'm a software developer). Although I think with today's candle closing near the low, a potential gap down is in the books that could trap people that bought yesterday. So there's a potential to make money with puts or shorting the stock if that gap down does occur. Would be a gap and go. For at least a couple months, my plan is to initiate a position with shares at each of the three ovals.
NASDAQ:MDBLong
by brianweber
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NASDAQ:MULong
by mastercharts