106.98 +1.49 (1.41%)
Pre-Market: 4:19AM EDT
|Bid||106.85 x 1000|
|Ask||107.08 x 1800|
|Day's Range||105.48 - 107.68|
|52 Week Range||80.71 - 120.71|
|PE Ratio (TTM)||N/A|
|Beta (3Y Monthly)||1.53|
|Expense Ratio (net)||0.35%|
Trump adds more Chinese tech entities to the Entity List. This puts spotlight on major U.S. chip suppliers to these entities and the impact on the ETFs holding them.
On June 18, semiconductor stocks filled the list of the top gainers in the S&P 500 Index after US President Donald Trump confirmed in a phone conversation with Chinese President Xi Jinping that the two would meet at the G20 Summit in Japan on June 28–29.
Semiconductor stocks could fall further toward the end of June if the United States decides to impose tariffs on the additional $300 billion of Chinese imports and China retaliates with export restrictions on rare earth minerals. The semi stocks could also be impacted by a weak second-quarter earnings season that reflects the financial impact of the trade war.
Semiconductor stocks have spiraled upwards today. The VanEck Vectors Semiconductor ETF (SMH) is up 4.6% currently, while the iShares PHLX SOX Semiconductor ETF (SOXX) is up 4.9%. Though trade war concerns remain, some stocks like NVIDIA might be undervalued due to their recent declines.
After Broadcom cut its forecast sparking a chip stock selloff, one analyst warns that things might get worse.
Early in May, I said that Intel (NASDAQ:INTC) stock was too cheap at $45 per share. Well now, Intel stock is above $46, so while not a multi-bagger win it's still up. But the point I made then is even more true now. INTC has more upside potential than downside risk from here.Source: Shutterstock I am a big fan of the products that Intel provides, but not so much of the recent management decisions. But therein lies INTC's potential. If they're not making good decisions now then they can remedy that going forward in order to create value in Intel stock price.More importantly, since my write up, we had another test of support in equities and INTC. The test was successful so I can assume that the zone around $43 per share in Intel stock is a floor for now.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 6 Growth Stocks That Could Be the Next Big Thing Conversely, I recognize that if for whatever reason the floor fails, then it could trigger another leg lower that could target $36 per share. This is not my forecast, but it is a scenario that exists.As far as valuation, Intel is cheap from a P/E ratio perspective. It sells at a 10.7 trailing P/E which is half as expensive as Nvidia (NASDAQ:NVDA) and maybe ten times cheaper than Advanced Micro Devices (NASDAQ:AMD). While this doesn't guarantee success, it does say that owning Intel shares at this valuation is not likely to be a financial catastrophe in the long run.AMD is still the star of the group, so if I wanted to go long the group and if the markets continue to rally it would be the better choice. But it also has a lot of froth that could fall flat the first sign of trouble. The floor in AMD relative to INTC is an abyss too deep for my taste here. Trading Intel StockIntel has the potential of a catch-up trade to redeem itself and fill the gaps above. The first one would bring it up to $50 per share area. The second one is more exciting that would take it all the way to $58 or higher. There will be resistance on the way up at $48, $51, and $53. These were ledges from which Intel fell apart on the way down.The rally won't be easy. The weekly chart shows that the current zone around $48 per share has been pivotal since October of 2017. So onus is on the bulls to reclaim it so they can start using it as forward support. The good news is that the same chart also shows that anything below $43 per share should be solid support. So to help the INTC stock bulls, there is a nice stable footing for them to step off of.In 2016, Intel stock made a major $10 leap higher from the $38 zone. So onus is on the bears to prove that it was a mistake. Its current fundamentals and the macroeconomic environment, suggest that it's not a realistic bearish expectation to fall back below. The U.S. is at full employment, and the global central banks are in full bull mode. So I fail to see the reason why a quality stock like Intel should revert to 2016 prices.Cheap valuation does not guarantee upside price movement. So those who know options can avoid buying shares and hope for a rally. They can instead sell puts against the support levels to create income with no money out of pocket. This way even if the stock meanders lower this year they can still profit. The Bottom Line on Intel StockIn essence they would be getting long INTC with a nice pad from current price just in case the macroeconomic conditions change dramatically. After all we are still at a threat geopolitical headlines especially from the economic war between the U.S. and China. * 7 High-Quality Cheap Stocks to Buy With $10 Although I see an upside opportunity, the price action is not intuitively bullish. INTC stock is lagging the sector. Year-to-date, it's down 1% while AMD, NVDA and the VanEck Vectors Semiconductor ETF (NYSEARCA:SMH) are up 74%, 10% and 20% respectively. So critics can argue that INTC stock is broken. I'd say it's definitely bruised and the company is healthy enough to fix it.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 free here. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * 7 High-Quality Cheap Stocks to Buy With $10 * 7 U.S. Stocks to Buy With Limited Trade War Exposure * 6 Growth Stocks That Could Be the Next Big Thing Compare Brokers The post Here's How Intel Stock (INTC) Could Rally to $58 appeared first on InvestorPlace.
Online pet-products retailer Chewy is expected to price its IPO, and chipmaker Broadcom will report earnings Thursday.
Semiconductor stocks and exchange traded funds started 2019 in fine form, but were hammered in May amid the intensifying US/China trade war. As China faces the prospect of losing access to American technology, such as semiconductors, the nation is stepping up its own chip game with more resources thrown to help develop the sector. While experts are saying that the U.S. is years ahead of China in terms of chip technology, it could hurt the U.S. if China does catch up.
Top stocks are rallying on the heels of the Nasdaq composite's Friday follow-through, which means a major shift in IBD's ETF Market Strategy.
Well, that didn't take long. Nvidia (NASDAQ:NVDA) stock has slumped more than 10% since I warned investors that Nvidia had farther to fall a few weeks ago. And even with the stock market roaring higher this week, Nvidia stock has only managed a modest recovery.Source: Nvidia Investors remain down on Nvidia's prospects for several good reasons. The pop in gaming revenues is nice, but there is only so much to be had there. The Bitcoin-powered sales boom is never coming back. Meanwhile, Nvidia's revenues are declining in its other major business segments. * 7 S&P 500 Dividend Stocks to Buy at Least Yielding 3% Nvidia: Looking For A New Board Member?While Nvidia has plenty of business issues to worry about, the company now faces a public relations issue of a most unlikely source. One of the members of its Board of Directors, Mark Stevens, got into a brawl at the NBA finals.InvestorPlace - Stock Market News, Stock Advice & Trading TipsStevens is a prominent tech industry investor, having worked for Sequoia. He is also a part owner of the Golden State Warriors, who are in the NBA finals.Stevens was courtside at a game between the Raptors and his Warriors on Wednesday. At one point, Raptors point guard Mark Lowry dove into the stands chasing the ball. At that point, Stevens started cursing at Lowry and made physical contact. Stevens was ejected from the game, fined $500,000, and banned from attending future Warriors games. The Raptor player said that:"He had no reason to touch me. He had no reason to reach over two seats and then say some vulgar language to me. There's no place for people like that in our league. Hopefully, he never comes back to an NBA game."CNBC reached out to Nvidia to ask about the company's reaction to their board member's most disappointing public behavior. However, Nvidia's spokesperson declined to comment on the incident. Regardless, it wouldn't be at all surprising if Nvidia asks Stevens to resign going forward. Additionally, ESPN reported that LeBron Stevens is demanding "swift action" to be taken against Stevens for his misconduct. Bitcoin and NVDA StockTurning away from Nvidia's board and back to its business brings us to Bitcoin. The price of Bitcoin surged from $4,000 in April to $5,500 in May and then $9,000 early in June. In the past, NVDA stock would have surged with such a euphoric move.Nowadays, however, NVDA stock keeps going down and down, even as crypto enjoys its best moment since December 2017. The fundamental problem here is that most miners no longer use Nvidia or AMD (NASDAQ:AMD) cards for mining. Instead, they use specialized high-end gear.You can still do profitable and efficient mining with Nvidia gear for some altcoins. But, at least so far, the current Bitcoin run has been mostly in Bitcoin itself, rather than the whole crypto universe. Crypto will have to get far more momentum going again before it will benefit Nvidia stock this time around. Don't read too much into the pop in gaming revenue from the last quarterly earnings report. The glory days of late 2017 aren't coming back again. China and Nvidia StockIronically, the current run in Bitcoin is arguably due to the trade war situation with China. Rumors abound that much of the Bitcoin buying is coming from Chinese folks who are eager to transfer capital out of the country. The Yuan has weakened sharply in recent weeks and there are reports of capital flight. That's great news for Bitcoin, but it's not good news for Nvidia anymore.Instead, Nvidia is suffering from a dramatic demand slowdown as companies are loath to invest money without knowing what the playing field will look like in the coming months.In the recent stock market decline, the S&P 500 fell seven percent. However, the semiconductor industry, as measured by the VanEck Vectors Semiconductor ETF (NYSEARCA:SMH) fell nearly 20%.The Trump Administration's battle with Huawei, in particular, threatens to cast a dark shadow over semiconductor stocks going forward. The tariffs alone are a major issue that will greatly reduce demand in the industry, but the prospect of Huawei being frozen out of the U.S. market adds a whole new dynamic.If the trade war drags on, Chinese companies will stop buying parts from U.S. suppliers and rebuild their supply chains with chips from other suppliers, which would permanently lower sales going forward. Nvidia Stock VerdictYes, I know Nvidia stock has plummeted over the past year. In fact, since its high of $293 per share, NVDA has lost more than half of its value. At this price, it must be cheap, right?Sorry, but it's not. NVDA stock is still selling for more than 25x forward earnings. It pays an anemic dividend yield of just 0.4%. Revenues shrank 31% year-over-year.And anyone hoping that the upcoming Mellanox (NASDAQ:MLNX) merger would fix things is bound to be disappointed. That merger is under increasing scrutiny due to the trade war as well.Mellanox stock has dropped sharply in recent weeks as uncertainty around the deal mounts. Even discounting Mark Steven's boneheaded behavior and its poor reflection on Nvidia, the company has plenty of other pressing problems. There's no rush to buy NVDA stock here.At the time of this writing, Ian Bezek held no positions in any of the aforementioned securities. You can reach him on Twitter at @irbezek. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * 7 S&P 500 Dividend Stocks to Buy at Least Yielding 3% * 7 Stocks to Buy That Don't Care About Tariffs * 5 Healthcare Stocks to Pick Up From the Wreckage Compare Brokers The post The Endless Plunge Plaguing Nvidia Stock Still Isn't Over appeared first on InvestorPlace.
Not too long ago, Nvidia (NASDAQ:NVDA) stock could do no wrong. At the highs, Wall Street experts unanimously said that it was the stock to own in every portfolio. Nvidia hit $290 per share at its all-time high.Source: Shutterstock Since then, Nvidia stock has fallen off a cliff. It's now under $150 and can't even hold a rally. In March it showed some promise, but that too failed. The bulls couldn't even fill a giant open gap from its horrendous November earnings report.I recently wrote a note that it could be headed to $200 per share, but since then, that effort also failed. Now it's back to the December lows while the S&P 500 remains 21% off its lows. Clearly NVDA stock is out of favor on Wall Street.InvestorPlace - Stock Market News, Stock Advice & Trading Tips Looking Forward in NVDA StockSo what now? Is it time to panic out of it?No.If I still am long Nvidia at this level, it would be a mistake to capitulate right here. This is a proven bounce level for the stock, so I can probably count on it continuing to be so until it's lost. Technically speaking, the stock has been in a descending lower high trend bouncing against a proven floor. More often than not, the floor holds, making a rally from these level likely. To open a new trap door from these low levels, I bet it will take incrementally bad news. * 7 S&P 500 Dividend Stocks to Buy at Least Yielding 3% But the risk is there, so it's important to know where it lies. If the bears are able to breach this support, then they would trigger a pattern to target $98 per share. This is not my forecast, but it is the negative scenario that looms below.NVDA valuation helps the bulls here. At $290 per share it was too expensive, as the price crash proves. But at these levels here the trailing price-to-earnings ratio is down to 30. This is relatively cheap if I compare it to something like Advanced Micro Devices (NASDAQ:AMD). It is still almost three times as expensive as Intel (NASDAQ:INTC) -- but for good reason. But maybe you get what you pay for, as AMD is up almost 80% year to date, while for the same period NVDA is up 8% and INTC is red.Fundamentally speaking, the demand on Nvidia products and services will continue to be strong for years to come. This is a premier technology company and one of only a few that will power the tremendous global migration to the digital world. We have a new world of AI and self-driving cars coming soon. This trend is not likely to reverse anytime soon.Nvidia's technology is solid, so they show no evidence of managerial flubs. So as an investor, I continue to give them the benefit of the doubt that they will continue to successfully execute on their plans.So to recap so far, here are my assumptions: I acknowledge that NVDA is no longer popular on Wall Street, but that alone is not a bad thing. And they have value here and very little froth left to shed. And most importantly, they still provide excellent products.So I can buy NVDA stock for the long-term, and I don't worry about the short-term dips for as long as my assumptions remain true. For those who prefer to trade around the short-term levels, there are some lines to know.Above $147, it could target $156 per share. But there are resistance levels in the way. On June 5, there was a sharp reversal from $146.20, so I have to mark it as important as well. Conversely, if the bears can break through $139.75, they could get the chance to set a new low below $132.There are outside factors too. It is important to note that any rallies in Nvidia stock will need the help of the global equity markets. We are still under the threat of geopolitical headlines because of the economic wars that are going on, so it would be smart to take positions in tranches and not all at once. This would leave room to manage dips.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 free here. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * 7 S&P 500 Dividend Stocks to Buy at Least Yielding 3% * 7 Stocks to Buy That Don't Care About Tariffs * 5 Healthcare Stocks to Pick Up From the Wreckage Compare Brokers The post Nvidia Stock Is Out of Favor on Wall Street -- Own It Anyway appeared first on InvestorPlace.
How Semiconductor Companies Are Handling the US-China Trade WarSemiconductor stocks rise for the first time since the trade war’s escalationAfter falling for more than 15 days amid rising US-China trade tensions, the VanEck Vectors Semiconductor
As China faces the prospect of losing access to American technology, such as semiconductors, the nation is stepping up its own chip game with more resources thrown to help develop the sector. While experts are saying that the U.S. is years ahead of China in terms of chip technology, it could put the hurt on the U.S. if China does catch up. Presently, 16 percent of the semiconductors used in China are produced domestically--half of which are actually made by Chinese firms, according to a report by the Center for Strategic and International Studies.
As bad as Monday's 'tech wreck' was for select large cap investors, nowhere has the damage in technology been as bad as in the semiconductor sector. And nowhere is that destruction of value more compelling as a contrarian investment than in Micron Technology (NASDAQ:MU) and buying MU stock today. Let me explain.Source: Shutterstock This week began on a very sour note for the tech sector with the 'antitrust' swear word rearing its ugly head after a couple years of quiet. The targeted are consumer favorites and increasingly powerful digital platform companies such as Amazon (NASDAQ:AMZN), Alphabet Inc (NASDAQ:GOOGL) and Facebook (NASDAQ:FB). On the news, each suffered heavy losses -- ranging from around 4.65% to about 7.50% -- and adding to growing losses accumulated over the past month.Corrections since early May have amounted to price declines of roughly 15% for AMZN and about 20% for both GOOGL and FB stock. Those losses sting to be sure. But the real tech wreck inside of technology companies has been and remains in the Vaneck Vectors Semiconductor ETF (NYSEARCA:SMH) and in particular Micron shares.InvestorPlace - Stock Market News, Stock Advice & Trading TipsWhile the tech-heavy Nasdaq is dealing with corrective losses of around 11.50%, the SMH has declined by 19% and is flirting with being in a full-fledged bear market. But the losses in those benchmarks, as well as what the aforementioned FANG stocks have witnessed pale in comparison to MU stock's dizzying declines of 28% since April and 47% over the past year since hitting a relative high in May 2018. * 6 Big Dividend Stocks to Buy as Yields Plunge Behind the pressure in MU stock, very well-telegraphed worries over an escalating trade war between the U.S. and China punctuated by the Trump Administration's Huawei ban have negatively impacted the memory-chip giant. In turn, worries dating back to last year of the cyclical and highly-commoditized memory market having peaked has only been compounded.The good news is with every cloud there is a silver lining. Or in the case of MU stock, there's a price chart with strong reasons to be optimistic sunnier days are around the corner. MU Stock Weekly Chart Click to EnlargeI don't think any investor, except a fear-mongering bear, would disagree deep losses and excessively pessimistic sentiment typically provide for a very strong contrarian-minded bullish opportunity. And given what's been addressed, I'm inclined to believe we've reached just that kind of situation in MU stock.Affirming this bullish point of view, we can see MU stock's larger correction reversed higher after a loose test of its 62% retracement level formed during its 2016 - 2018 rally, as well as the 200-week simple moving average. The action over the past several weeks looks similar on a smaller scale. Shares of MU are piercing the 62% support level of the rally developed from the December 2018 bottom to the March 2019 peak as stochastics generates an oversold crossover signal. It looks bullish, but there's more too.During Tuesday's session Micron is confirming a weekly bullish candlestick reversal pattern. And with shares holding above the key long-term weekly moving average and forming a relative higher low, there's more than a few reasons to be optimistic, as well as to consider buying MU stock today.For investors agreeable with MU stock being in position to move higher from here, I'm not placing an upside price target on shares. Ultimately, I'm looking for a higher high pattern to develop in 2019. That being said, $39 - $40 for initial profit-taking makes good sense off and on the price chart in conjunction with using last week's pattern low as an exit.Disclosure: Investment accounts under Christopher Tyler's management currently own positions in Micron (MU) and its derivatives but no other securities mentioned in this article. The information offered is based upon Christopher Tyler's observations and strictly intended for educational purposes only; the use of which is the responsibility of the individual. For additional options-based strategies, related musings or to ask a question, you can find and follow Chris on Twitter @Options_CAT and StockTwits. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * 7 Stocks to Sell Impacted by the Mexican Tariffs * 6 Big Dividend Stocks to Buy as Yields Plunge * The 10 Biggest Announcements From Apple WWDC 2019 Compare Brokers The post Why MU Stock Is a Buy Right Now appeared first on InvestorPlace.
After being drubbed in May, semiconductor stocks and the related exchange traded funds, including the VanEck Vectors Semiconductor ETF (SMH) , could use some relief this month. An ongoing rally for cryptocurrencies could spark upside for some semiconductor makers, including some SMH member companies. Semiconductors have exhibited high sensitivity to the trade war because China is a strong driver for the chip-making sector, which includes several fast areas of growth including gaming and artificial intelligence.
With the trade war making daily headlines, it's anybody's guess where we're headed. But semiconductor stocks Advanced Micro Devices (NASDAQ:AMD) and Intel (NASDAQ:INTC) can help spread that risk as a nice-looking pairs trade which goes long AMD stock and short INTC stock.Source: Shutterstock As a group, semiconductor stocks and the Vaneck Vectors Semiconductor ETF (NYSEARCA:SMH) have been challenged by an escalating trade war between China and the U.S. But don't think for a second the trade war is the end all, be all for AMD stock and INTC.To be sure, exposure to increased tariffs on our favorite gadgets from companies such as Apple (NASDAQ:AAPL) is a problem for chip stocks. The combination of higher end prices for consumers leading to lower demand, as well as the fabrication and assembly of chips into those products occurring in China is an albatross hanging over investors. I understand. Bottom line, the consequences could be very costly.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 7 Stocks to Buy for June Still, within this ever-volatile narrative and beyond the macro headlines, shares of Advanced Micro Devices stock and Intel stock are diverging strongly off and on the price charts backed by company-specific drivers. Ignoring this could prove very costly for investors. AMD Stock: BullishThe Computex trade show over the weekend was a well received story for Advanced Micro Devices price-wise. It's also the latest AMD news in a string of bullishly-supportive stories ranging from earnings to a substantial U.S. Department of Energy contract win in recent weeks.Shares finished up nearly 10% on Tuesday after investors, supported by favorable analyst accolades, cheered AMD's unveiling of soon-to-be released 3rd generation Ryzen chips and graphics cards aimed at the PC and gaming industries which feature competitive specifications at lower prices. That's a win for consumers.AMD's CEO Lisa Su also announced the company's 2nd generation Epyc server chips are slated to be released in Q3. Similarly, that sounds like a win for businesses too. Click to Enlarge On the price chart Tuesday's enthusiastic bid also reaffirmed a bullish trend on the AMD stock chart. The above-volume thrust sets up a breakout of a tight multi-week consolidation above $29.95 within a larger corrective base. And that could be a big win for investors.The recommendation for AMD stock is to put shares on the radar for a breakout entry through $30.25. That's 1% above the high of the current congestion pattern.On the upside, I'd look to take initial profits as shares challenge 2018's relative high of $34.14. To keep exposure contained, a trailing stop of 7% to 8% looks about right off and on the price chart. INTC Stock: BearishThose same chips which had AMD stock investors celebrating so strongly Monday come at the expense of INTC stock. The company is still the world's largest semiconductor manufacturer by a wide margin, but increasingly a resurrected AMD is becoming a very real competitive threat for Intel.Following AMD's newest chip challenge, Intel's Core i7/i9 processors appear to be at increased risk according to Wells Fargo.On the INTC stock price chart, the growing business challenges Intel is facing has resolved itself into a quick corrective move. It's also a correction I don't see as being finished.Technically, the argument for a bottom in INTC stock can be made. Shares are testing a couple Fibonacci levels, as well as Intel's market-bucking relative low carved out in October. The challenge has also formed a bullish weekly hammer candlestick as of last Friday. But be warned. Click to EnlargeIf shares fail to hold pattern support, the opportunity for a profitable short position in INTC stock looks very favorable. The interpretation is Intel's fairly wide and loose support area beneath today's immediate technical support will allow shares to move much deeper into this price zone before a meaningful bottom emerges. * 4 Consumer Staples Stocks for Both Income and Growth The recommendation for shorting INTC stock is to use an entry below $42.74 and slightly beneath the weekly hammer. I'd keep the initial exposure contained to $45.20. This exit is modestly above the high of the bullish candlestick, which combined with trade risk of less than 6% is smart business off and on the price chart as part of a pairs trade with AMD stock.Disclosure: Investment accounts under Christopher Tyler's management currently own positions in Advanced Micro Devices (AMD) and its derivatives but no other securities mentioned in this article. The information offered is based upon Christopher Tyler's observations and strictly intended for educational purposes only; the use of which is the responsibility of the individual. For additional options-based strategies, related musings or to ask a question, you can find and follow Chris on Twitter @Options_CAT and StockTwits. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * 7 Stocks to Buy for June * 7 Stocks to Buy From One of America's Best Pension Funds * 4 Consumer Staples Stocks for Both Income and Growth Compare Brokers The post Semiconductor Pairs Trade: AMD Stock and INTC Stock appeared first on InvestorPlace.
Earlier this month when we learned about the new tariff rates that the U.S. imposed on China, I shared a write-up warning about Micron (NASDAQ:MU) being directly in the line of fire of that economic war.Source: Shutterstock Since then, MU stock has fallen 15%, so it's now closer to finding a bottom. Micron is not alone. The VanEck Vectors Semiconductor ETF (NYSEARCA:SMH), Intel (NASDAQ:INTC) and Nvidia (NASDAQ:NVDA) all fell the same. Only Advanced Micro Devices (NASDAQ:AMD) held well.I never assume that I will find the perfect place to buy a stock, but in this case MU stock seems to be at a point where there's less risk below than there is upside above.InvestorPlace - Stock Market News, Stock Advice & Trading TipsThat's at the heart of today's thesis -- this too shall pass. The U.S. and China will eventually come to some terms that are not disastrous. There's just too much at stake for everyone involved, and the consequences are global. The leaders understand this, and once they get over their egos, they will move forward with terms that allow for business to continue as is, or close to it.In that case, Micron could rally with fundamentals below to support the bullish effort and recover some recent glory. MU Stock By the NumbersThe fundamentals of Micron are exceptional. This is a leading technology provider that sells at a very low trailing price-to-earnings ratio of 3. While some experts on Wall Street call it a value trap, but that's the same value that serves as a stabilizing base. Those who already own the shares are not scared out of it. * 7 Utility Stocks to Trust for Retirement In other words, Micron stock is in strong hands, so it cannot fall too far when it's this cheap. The only way that would happen is if the whole market collapses from here. The current macroeconomic conditions do not support this doomsday theory.The demand for technology is increasing at an exponential rate. This is a trend that will not reverse. In fact, it will continue to accelerate. Technology begets more technology, and Micron is one of the few companies that supplies the brains of the operation.Salesforce.com (NYSE:CRM) made the cloud cool, Amazon (NASDAQ:AMZN) built it, and now the rest of the world wants to be on it.With the advent of easy connectivity -- like 5G, for example -- almost every human on the planet will soon hold a device connected to all the tech around us. So demand for electronic components and services like the ones that MU provides will continue to be strong regardless of how political leaders squabble.Meanwhile, for the short-term, there are important technical lines to know.In my earlier writeup, I noted the fact that MU stock has fallen into a support zone. The price action has not yet been bullish, so clearly the upside triggers are far from triggering. But the support zone is still intact and it extends through $32 per share. As the negative headlines grow more stale, the MU buyers will regain the confidence to reset their positions.The price range is tightening and this builds energy in the stock. Eventually this has to resolve itself in a breakout. If markets in general hold up then Micron will more likely explode up than down.The important line for bulls to hold is $32 while they attack the descending trend line of lower highs. A breach of either of those would bring a move in that direction. So I get long the shares through stock or options and set a stop loss that fits my risk profile.In this case, MU is cheap enough to make it so that this trade can turn into an investment without dire consequences. So even if this short-term potential breakout fails I can hold it for a longer time frame.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. You can follow him as @racernic on Twitter and Stocktwits. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * 6 Marijuana Stocks With Critical Levels to Watch * 7 Utility Stocks to Trust for Retirement * 5 Large-Cap Stocks Getting Crushed in the Trade War Compare Brokers The post At $33, Micron Stock Is a Compelling Investment appeared first on InvestorPlace.
Semiconductor stocks and exchange traded funds are tumbling this month. Semiconductor ETFs tested their long-term trend lines last week as the trade-induced, risk-off selling continued with Chinese officials throwing more fuel into the fire. The VanEck Vectors Semiconductor ETF (SMH) entered Friday with a month-to-date loss of 16.35%, but if some seasonal trends hold true to form, the battered chip fund could see some near-term relief as soon as the week after the Memorial Day break.
Semiconductors have taken a 12 percent hit thus far in May after leading the rebound following 2018's fourth-quarter sell-off debacle. According to TradingAnalysis.com founder Todd Gordon, the chips might be down, but it's an opportune time to buy the dip. “The semis have led us on the way down,” said Gordon.
Semiconductor ETFs tested their long-term trend lines on Thursday as the trade-induced, risk-off selling continued with Chinese officials throwing more fuel into the fire. The broad sell-off in the equities market continued Thursday after a Chinese official said the U.S. should “adjust its wrong actions” if it would like to continue negotiations in response to the Trump's administration's restrictions on the telecommunications giant Huawei Technologies, fueling investors’ concerns that Washington and Beijing are moving further apart on a trade deal. U.S. semiconductors were among the hardest hit in the wake of the Huawei blacklisting as chipmakers lost a big customer in Huawei, the world's largest provider of telecommunication equipment, which purchased about $20 billion in semiconductor chips each year.
Below is a look at ETFs that currently offer attractive buying opportunities. The ETFs included in this list are rated as buy candidates for two reasons. First, each of these funds is deemed to be in an uptrend based on the fact that its 50-day moving average is above its 200-day moving average, which are popular indicators for gauging long-term and medium-term trends, respectively. Second, each of these ETFs is also trading below its five-day moving average, thereby offering a near-term 'buy on the dip' opportunity, given the longer-term uptrend at hand. Note that this prospects list also features a liquidity screen by excluding ETFs with average trading volumes below the one million shares mark. As always, investors of all experience levels are advised to use stop-loss orders and practice disciplined profit-taking techniques. To get access to all ETFdb.com premium content, sign up for a free 14-day trial to ETFdb.com Pro.
It's a rare market where we, literally, write off a huge percentage of stocks that we would normally want to buy. It pays sometimes to just tick down what can't be bought right here and why and how that can turn because right now there is a shortage of buyable stocks that allow us to take a nap. Sleeping through the night is out of the question given our president and the trade war with the Chinese.
The stock market bounced Tuesday in a broad advance in which small caps spearheaded the attack. The Russell 2000 jumped 1.2% at the closing bell, outperforming the major indexes. The small-cap gauge, however, remains below its converged 50-day and 200-day moving averages.