|Day's Range||0.6300 - 0.8900|
Little change occurred among top stock funds during the past month as the major market indexes rallied back near all-time highs.
Traders are always on the lookout for the next short squeeze candidate. Short squeezes can send share prices skyrocketing in a matter of minutes and hours, and traders who are along for the ride can make ...
For all the talk about the technology sector's vulnerability to the U.S./China trade war -- and that assessment is credible -- the group hasn't been as bad as some investors are led to believe. In August, a rough month for equities at the hands of trade tensions, the tech-heavy Nasdaq-100 Index lost 1.4% while the Technology Select Sector SPDR (NYSEARCA:XLK), the largest tech ETF, was lower by 1%.Obviously, those are not numbers to write home about, but they speak to the point that tech ETFs have not been as awful as some investors have been programmed to believe. Plus, there are positive signs emerging, such as Apple (NASDAQ:AAPL) tapping debt markets for $7 billion and analysts waxing bullish about that stock, Intel (NASDAQ:INTC) and other big-name tech fare.Of course, relying on resolution to the trade spat to fuel tech ETFs can be a volatile bet. As volatile as, say, President Donald Trump's Twitter fingers. And all of this is ignoring the headline risk of government regulation stepping into some of the biggest players.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 7 Industrial Stocks to Buy for a Strong U.S. Economy Yes, tech ETFs could use a boost via a cooler trade environment and less headline risk, but there are some solid fundamentals remaining in the sector. That makes some of the following tech ETFs worthy of consideration over the remainder of 2019. Tech ETFs to Buy: VanEck Vectors Semiconductor ETF (SMH)Expense Ratio: 0.35%Semiconductor stocks have been front and center during the trade controversy, but the reality is the VanEck Vectors Semiconductor ETF (NYSEARCA:SMH) lost just a third of a percent last month, and there are reasons to be optimistic about chip stocks. Adding to the case for this tech ETF is that semiconductor demand is usually strong in toward the end of the year, a scenario that should it repeat, would defy calls for slack demand.Another iPhone demand cycle coupled with ongoing 5G investments are among the factors that should support chip demand over the next several months. Increased data center spending, discussed here, also has the potential to support tech ETFs and chip names over the near- to medium term.Additionally, SMH is technically healthy relative to other tech ETFs. The fund resides well above its 200-day moving average and just 6.2% below its 52-week high, indicating more new highs before the end of 2019 are not an unreasonable expectation. Global X Cloud Computing ETF (CLOU)Expense Ratio: 0.68%One of this year's most successful new ETFs, the Global X Cloud Computing ETF (NASDAQ:CLOU) has over $500 million in assets under management following its April debut. This tech ETF currently resides about 8% below its highs due in large part to valuations concerns in the Software-as-a-Service (SaaS), a major area in CLOU.Broadly speaking, cloud stocks are growth fare, leaving the door open for some retrenchment when investors favor more defensive, lower-volatility strategies. Conversely, CLOU is backed by an enticing, fundamentally sound long-term proposition. * 7 Deeply Discounted Energy Stocks to Buy "The global cloud computing market is estimated to be worth well-over $300 billion by 2022, up from about $188 billion today and growing at a compound annual growth rate (CAGR) of 14.6%," according to Global X research. WisdomTree Modern Tech Platforms Fund (PLAT)Expense Ratio: 0.45%Another rookie tech ETF, the WisdomTree Modern Tech Platforms Fund (NYSEARCA:PLAT) debuted in May and takes a unique approach to tech investing, opting to focus on asset-light, transformative, platform-based business models."WisdomTree defines a modern technology platform as a company with a non-linear, multi-sided business model focused on creating value by facilitating interactions between two or more interdependent groups through technology," according to the issuer.PLAT is not a dedicated tech ETF, as it features exposure to six sectors with communication services and consumer discretionary combining for 57% of the fund's weight."The structural advantages of the platform-based businesses we seek to invest in can be reflected in financial metrics through robust revenue growth, margin expansion, substantial free cash flow generation and strong returns on capital," WisdomTree said. iShares U.S. Technology ETF (IYW)Expense Ratio: 0.42%A decent idea for the investors looking for basic tech exposure via the ETF wrapper, the iShares U.S. Technology ETF (NYSEARCA:IYW) is often known for its large combined weight to industry behemoths Microsoft (NASDAQ:MSFT) and Apple. Those stocks combine for nearly a third of this tech ETF's weight.Of course, those are quality stocks, as is much of IYW's lineup, in a sector not known for being a value play. But investors should not be put off by the valuations on some of IYW's marquee holdings. * 7 Best Tech Stocks to Buy Right Now "The sector trades at approximately 21.5 times trailing earnings and 20 times forward earnings. Current valuations compare favorably with the long-term average but look elevated relative to the post-crisis norm," according to BlackRock. "The sector trades at a 10%-15% premium to the broader market. This is above the post-crisis average of about 4%. That said, it is worth noting that relative value looks more compelling based on other metrics, notably price-to-cash-flow. On this metric the sector's current relative valuation is below the post-crisis average." Invesco DWA Technology Momentum ETF (PTF)Expense Ratio: 0.6%It might appear to be reasonable to assume that the combination of technology stocks and momentum was punitive for the Invesco DWA Technology Momentum ETF (NASDAQ:PTF) in August, but the opposite is true. This tech ETF actually outperformed more prosaic rivals, losing just a third of a percent in the eighth month of the year.PTF follows the DWA Technology Technical Leaders Index. That benchmark "designed to identify companies that are showing relative strength (momentum), and is composed of at least 30 securities from the NASDAQ US Benchmark Index. Relative strength is the measurement of a security's performance in a given universe over time as compared to the performance of all other securities in that universe," according to Invesco.PTF holds 39 stocks with an average market value of $22.7 billion, which is far smaller than what is found on more traditional tech ETFs. The Invesco fund is a growth ETF as over 93% of its holdings are designated as growth stocks and it is a software proxy as that industry represents over 59% of its weight. Global X Internet of Things ETF (SNSR)Expense Ratio: 0.68%Being a thematic fund, the Global X Internet of Things ETF (NASDAQ:SNSR) could be the type of play that investors abandon in rough markets, but that would be the wrong way of approaching this tech ETF. Yes, SNSR is more volatile (standard deviation of 18.5%) than a run-of-the-mill tech ETF like IYW or XLK, but there is also significant growth potential here.Few, if any, of the disruptive technology themes investors have been hearing so much about over the past couple of years have the reach that the Internet of Things has, meaning it touches both businesses and consumers and in significant fashion. * The 8 Worst Stocks to Buy Before the Trade Turmoil Cools Off "On the enterprise side, the IoT will help businesses collect vast amounts of data that can be used in varying capacities, from predicting consumer behavior to reducing supplier risks," according to Global X. "Forecasts expect 20.4 billion connected devices to be online by 2020 with $1.4 trillion in worldwide annual spending on IoT hardware, software and services by 2021." First Trust Nasdaq Technology Dividend ETF (TDIV)Expense Ratio: 0.5%Dividends are meaningful drivers of long-term total returns and stocks in this category, particularly dividend growers, are often less volatile than their non-dividend peers. The First Trust Nasdaq Technology Dividend ETF (NASDAQ:TDIV) proves as much as it has been significantly less volatile than the Nasdaq-100 and broader tech ETFs over the past several years.Owning this tech ETF means capturing exposure to mature tech companies, some with value profiles and some that can be laggards relative to their growth-oriented peers.The upside is the aforementioned reduced volatility, quality balance sheets, dependable dividend growth and a better yield (2.28%) and more upside potential than government bonds.As of this writing, Todd Shriber does not own any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 3 Artificial Intelligence Stocks to Buy * 7 Industrial Stocks to Buy for a Strong U.S. Economy * 3 Beaten-Down Bank Stocks to Buy and Hold for the Long Term The post 7 Tech ETFs to Invest In Now appeared first on InvestorPlace.
Dan Deming of KKM Financial shared with the viewers of Bloomberg Markets his options strategy in VanEck Vectors Semiconductor ETF (NYSE: SMH ). He thinks the stock is going to challenge its highs and he ...
They say that markets tend to climb the wall of worries. This is very true these days since we have the NASDAQ Invesco QQQ Trust (QQQ) up 24% year-to-date even in the face of tremendous headline risks from many angles. More specifically, look at the chip sector where a stock like Advanced Micro Devices (NASDAQ:AMD) is up 70% in 2019 despite the ongoing trade war.Source: Sundry Photography / Shutterstock.com This is a slap in the face to all fearmongers scaring investors out of owning great stocks just because the U.S. and China are negotiating a trade deal in a less than ideal setting.These headlines wreak havoc in AMD and the VanEck Vectors Semiconductor ETF (NYSEARCA:SMH) as a whole. While the stock prices go for a ride, their fundamentals remain intact. In fact the demand for AMD products and services has a runway at least a decade long. And as long as they have strong management like they have with current CEO Lisa Su, then there is no reason to sell the stock over short-term fears.InvestorPlace - Stock Market News, Stock Advice & Trading TipsSure, a tweet here or a media headline there could get the traders' attentions, but it's not a reason alone to change the investment thesis for the stock. There is no evidence yet that the US and China won't eventually come to terms. So the prospects for AMD stock remain bullish. AMD Stock Is Still the Top Chip StockIf I own AMD already, then I'm staying long. Otherwise, I treat the dips as opportunities to buy AMD stock for the long term. It has performed most consistently in the sector even last year when markets were correcting hard.Fundamentally, it's not cheap but that doesn't matter. AMD is still a growth company, so when I evaluate those types I don't look for profitability. Instead, I need them to grow a lot. And in order to do that they need to spend a lot. Moreover, AMD stock sells at only 5 times sales. So while the price-to-earnings ratio is scary to some, the stock is not bloated given its growth trajectory.In addition, technically AMD stock is still in the hands of the bulls. The weekly chart shows a clear ascending channel. And as long as the lower edges continue to hold, then the AMD bears will have a hard time taking control of the price action.Short term there are important levels to note. For the last few weeks, AMD stock price range is between $27.50 and $34 per share. The breach of either sides will carry momentum in that direction. Also, since the beginning of August, AMD has been setting higher-lows attacking a neckline at $32 per share. If the bulls can break above it then they could rally another $3 from there. And that would launch the opportunity of the next leg higher.If the general equity markets cooperate, that would fuel the AMD buy programs to exceed $35 per share. But conversely, if the bears are able to bring AMD stock below $29 per share, then they may have the opportunity to trigger a $3 bearish pattern. So clearly the next few weeks are important to recommit to the direction of the next wave in Advanced Micro Devices stock price. The Bottom Line for AMDOf all the chip stocks, AMD is the only one I would bet on these days. It has had the fewest fake-outs. Both stocks of Nvidia (NASDAQ:NVDA) and Intel (NASDAQ:INTC) have disappointed investors several times in recent months. So I consider AMD stock as the best bet on the upside potential of all chip stocks if not the market as a whole.If stocks are higher in the future, then AMD is definitely higher. To that, the bearish consensus is starting to build. The media is pushing the notion that we are in the late stages of the economic expansion. Meaning that a recession is coming. While that is eventually true, there is no evidence yet that a recession is imminent.I just find it hard to believe that we could have the economies shrink when everyone is employed and rates are so low. Admittedly, these are unprecedented times so there are no real experts on what comes next. Therefore I stick with my bullish thesis for as long as the data continues to be in line with expectations as it has been. * 7 Triple Threat Growth Stocks to Buy for the Long Term Companies like AMD are still delivering excellent profit and loss statements with good balance sheets. And the consumer in the US is still spending with extreme vigor, because everyone that wants a job has one. Just like it's not a good idea to buy a stock in anticipation of something without confirmation, it is a mistake to anticipate a rescission without confirmation of its impending arrival.Nicolas Chahine is the managing director of SellSpreads.com. As of this writing, he did not hold a position in any of the aforementioned securities. Join his live chat room for free here. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Deeply Discounted Energy Stocks to Buy * 7 Stocks to Buy In a Flat Market * 10 Stocks to Buy to Ride China's Emerging Wealth The post AMD Stock Is Still the Chip Champ appeared first on InvestorPlace.
August was tough for the semiconductor industry and semiconductor ETFs. The stocks fell significantly in early August when the US-China trade war escalated.
Despite increasing trade war rhetoric, the VanEck Vectors Semiconductor ETF (NYSEArca: SMH) is maintaining an impressive year-to-date gain of 29% even after a rough August for chip stocks and some market ...
As the U.S.-China trade war rages on, the world’s second-largest economy looks to become less independent on the U.S. by shoring up its own semiconductor industry. Can China become its own semiconductor powerhouse to rival the big U.S. chipmakers? Apparently, this goal is not something new that came as a result of the recent tariff wars with the U.S.
The U.S. Commerce Department is receiving license requests for granting sales to Huawei. In such a scenario, we look at a few chip ETFs which will benefit from a nod in favor.
As the next round of tariffs on US and Chinese goods approaches on September 1, the pressure is mounting on Fed Chairman Jerome Powell to cut rates again.
Gold hit a fresh six-year high on Friday as trade tensions between the US and China escalated. The SPDR Gold Shares ETF (GLD) closed up 2%.
When it comes to traders looking leveraged exchange-traded fund (ETF) opportunities, the semiconductor sector is one in which China will have a profound impact. "It is really important to look at where China is in the overall value chain," said Jimmy Goodrich, vice-president of global policy at the Semiconductor Industry Association, a US trade group representing some of the biggest names in the industry from Intel to Broadcom. It is really important to look at where China is in the overall value chain," he added.
Nvidia (NASDAQ:NVDA) stock was a Wall Street darling not too long ago. But lately it has lost its shine and now cannot hold a rally long enough to flip this massive down slide that started last year. Year-to-date, Nvidia stock still lags the chip champ Advanced Micro Devices (NASDAQ:AMD) by more than half.Source: Shutterstock On its way up to $290 per share, NVDA rode the Bitcoin craze up fast. But as the Bitcoin mining headlines faded, the Nvidia stock price fell off a cliff. Ironically, at the highs of almost $300 per share the consensus among experts was that NVDA was a must-buy. Now that it's a lot cheaper with almost all the same fundamentals that supported the rally, it's hard to find any fans of it on Wall Street.Fundamentally speaking NVDA stock is not cheap at 45 price-to-earnings ratio. But owning it at these levels for the long term is not likely to be a giant debacle. This is especially true for patient investors. The company is well set to capitalize on several segments for the next decade of tech.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * The 10 Best Marijuana Stocks to Buy Now Shorter-term, it is important to pay attention to what the clues in the Nvidia stock chart suggest. There are definite levels that stand out from the latest price action. What You Should Expect From NVDA NowTraders reacted positively to the earnings report this week. NVDA spiked 15% and is now trying to hold the rally in order to extend it. It is important for it to hold higher-lows and break out from $180 per share. If the bulls are able to do this, Nvidia stock should trigger a bullish cup-and-handle breakout to target $200 per share or higher.This won't be easy and there will be resistance, first at the neckline, then at $194 per share. These two levels have been significant prior failure zones. So the onus is on the NVDA stock bulls to prove that they can hold the trend of higher-lows in order to attack the neckline that has so far proven so elusive.For that to happen, Nvidia will need the help of the general markets. This week is another potentially pivotal week for stocks, as today we get the Federal Reserve minutes from their last meeting. And on Friday we hear from the Chairman himself. Recently Fed head Jerome Powell's effect on the markets has been very violent. So coming into the event on Friday the NVDA trade is somewhat binary. Short term, it has more gambling than investing in it.The fear index -- the CBOE Volatility Index (INDEXCBOE:VIX) -- is still elevated but nowhere near critical levels. Only days ago it was pushing $25 per share and now it's below $20. So there is no obvious ramp up in fear, even as equities hang this close to all-time highs in the S&P 500 for example. * 7 Unusual, Growth-Oriented REITs to Buy for Your Portfolio In other words, this market is indeed climbing the wall of worry. And with a little bit of luck, the rally continues so that Nvidia stock can actually breakout of this funk and recover some old glory.Depending on the portfolio, it is okay to hold or buy NVDA here in anticipation of the breakout as long as investors place proper stops below.Alternatively, instead of buying upside hope, we can sell downside risk into the Nvidia stock price. For example, you can sell the Dec $130 put and collect $2 per contract to open. This way you don't even need a rally to profit as long as Nvidia stock stays above that level, you are a 100% winner. The breakeven from that trade would be at $128 per share. Below it, you would own the shares and accrue losses.Regardless of what you decide to do, you should do it in tranches. This leaves room for adjusting the risk if and when it's needed.Nicolas Chahine is the managing director of SellSpreads.com. As of this writing, he did not hold a position in any of the aforementioned securities. Join his live chat room for free here. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Marijuana Stocks to Ride High on the Farm Bill * 8 Biotech Stocks to Watch After the Q2 Earnings Season * 7 Unusual, Growth-Oriented REITs to Buy for Your Portfolio The post Nvidia Stock Finally Has What It Takes to Break Out of $200 Again appeared first on InvestorPlace.
On Friday, chipmakers Nvidia and Applied Materials will be in focus following their quarterly results that were released Thursday evening.
A recent Wall Street Journal investigation found that Huawei technicians had helped Uganda and Zambia government members spy on political opponents.