July 29, 2019
State of the Markets
HUGE WEEK for markets! Interest rate decision will be Wednesday at 2pm est. China and US trade talks on Monday. Massive potential for volatility. STAY TUNED FOR MY VIDEO LESSON COMING SHORTLY.
Stocks To Watch This Week
NVIDIA Corp (NVDA) is a PC graphics chip maker in the same space as big names like Intel (INTC) and AMD. With AMD reporting earnings on Tuesday, and the technicals lining up as well as they are on this name, I expect this to get really fun to the downside this week. This sector (Chipmakers) has been to the bearish side so far this earnings season, with the most notable name INTC, releasing an earnings beat, but reporting negative year over year growth, and going heavily red after initially being way green. From a technical perspective note the head and shoulds patternf orming here, as well as the levels of retracement that this has hit. The last should reversed sharply after a 31% bounce, and this shoulder, its right in that same retracement level. The potential on this continues to lay to the downside, as the sector as a whole has seena massive move to the upside over the last tw months. Major breakdown levels are first $172.30, and then $170. After that its a patience game as this could really, really give back a lot down towards the $140’s.
Advanced Micro Devices (AMD) is in the same sector as NVDA above. This thing can get really, really nuts with earnings Tuesday. Current implied volatiliy on earnings is just over 10% but that feels quite low. Note the critical 8 month trendline at stake here. If this gives up $31 its all over for this and 30-50% retrace in the ensuing months is not at all out of the question, especially with how overbought this name is sepcifically, being up over 100% in just the last 7 months. Watch the trendline that I have noted on the right, that will be the tell all. Also notice the last time the stock broke $30 about 10 months ago, it pulled back 50% down to $16 in the course of 1 month. Be ready to act quick on this if earnings are disappointing, and even if they aren’t, this could very very possibly pull an INTC and sell off its initial gap up entirely.
Solid Biosciences Inc. ($SLDB) is a Generic Drug Manufacturing company in the Healthcare sector. This low-float penny stock boomed last Friday morning, after releasing news of a $60 million Private Placement set with both new and existing investors. This funding satisfies the company’s short-term need for capital, allowing investors to worry less over dilution from stock offerings. With this being a potential swing in mind, I plan to day trade the descending wedge breakout by buying over the $6.10 natural resistance level!
Gemphire Therapeutics Inc. ($GEMP) is a Biotechnology company in the Healthcare sector. This micro-float penny stock gapped up nicely Friday morning, after announcing that their leading drug, Gemcabene, will be introduced into the Chinese market through a strategic partnership, which also provides an upfront deposit payment of $2.5 million. This positive news quickly sold off after market open, creating an opportunity for a gap fill breakout on Monday morning. I plan to day trade this over the $0.84 natural resistance level for the gap fill breakout!
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