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Bitcoin’s Big Fall, and Nvidia, AMD Fallout- The Monster Week In Review
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This past week saw more record highs on the S&P 500 with the index reaching nearly 2,700. Technology, financials, and discretionary stocks continue there run higher as well. Over the past three months, the three sectors have all risen by over 10 percent, easily outpacing the S&P 500 rise by about 7 percent.
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It would seem unlikely with just one week left in the year much should change during the shortened trading week.
Chip Stocks
The chip stocks made a slight rebound this week, rising by about 1.5 percent, as measured by the semiconductor ETF ($SOXX). Micron was the story of the week though, after the company easily beat quarterly results, and raised guidance for the coming quarter. Share responded positively by about 4 percent during the week.
Micron
Micron shares gapped higher after the results and managed to fill that gap. It should set up for shares of Micron to rally from these level, as the overall technical trends have shifted to a bullish stance, while the underlying business seems to be quite strong.
Bitcoin
Bitcoin had a wild week and again shows how undeveloped the market is, and the high risk that comes with it. The cryptocurrency was trading at nearly $20,000 on December 17, and reached a low of $10,500 on December 22, and is now trading at $15,820 on December 23, as of 9:40 am.
Insane levels of volatility for sure. The trend has turned negative. I could not tell you what bitcoin will do from here. There is an emotional part too that can not be measured, and with no underlying fundamentals to value bitcoin, the value of it seems entirely reliant on emotion.
The pendulum will swing and what was exuberance turned to fear, turned buy the dip, and next turn may be extreme fear. Bitcoin was just at $1,000 on to start 2017, keep that in mind.
AMD and Nvidia
AMD and Nvidia fell on this Bitcoin mess too, because they are seen as indirect ways by some to play bitcoin since they make the chips that help in the process of “mining” bitcoin.
But as I noted in an Investopedia article this week, AMD has not been rewarded all-year by bitcoin’s sharp rise. AMD has fallen by about 7 percent in 2017, while NVDA’s saw only 2 percent of its total revenue in its last quarter come from bitcoin.
AMD and Nvidia, Bitcoin Fears Maybe Overblown
To think that AMD or Nvidia should be down due to bitcoin seems entirely unfair for both stocks.
That is going to be it, until tomorrow.
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Free Articles Written By Mike:
AMD and Nvidia, Bitcoin Fears Maybe Overblown
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Costco May Be Heading Toward a 10% Pullback
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Apple Chipmakers Are Ready To Rebound
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Why Goldman, Morgan Stanley May Rise At Least 15%
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AMD May Fall By 20% As Short Interest Surges To 5-Year High
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Michael Kramer and the Clients of Mott Capital own shares of TSLA and NFLX
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Tags: #bitcoin #nvidia #amd #micron #semiconductors #technology #financials #sp500
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This report contains independent commentary to be used for informational and educational purposes only. Michael Kramer is a member and investment adviser representative with Mott Capital Management. Mr. Kramer is not affiliated with this company and does not serve on the board of any related company that issued this stock. All opinions and analyses presented by Michael Kramer in this analysis or market report are solely Michael Kramer’s views. Readers should not treat any opinion, viewpoint, or prediction expressed by Michael Kramer as a specific solicitation or recommendation to buy or sell a particular security or follow a particular strategy. Michael Kramer’s analyses are based upon information and independent research that he considers reliable, but neither Michael Kramer nor Mott Capital Management guarantees its completeness or accuracy, and it should not be relied upon as such. Michael Kramer is not under any obligation to update or correct any information presented in his analyses. Mr. Kramer’s statements, guidance, and opinions are subject to change without notice. Past performance is not indicative of future results. Neither Michael Kramer nor Mott Capital Management guarantees any specific outcome or profit. You should be aware of the real risk of loss in following any strategy or investment commentary presented in this analysis. Strategies or investments discussed may fluctuate in price or value. Investments or strategies mentioned in this analysis may not be suitable for you. This material does not consider your particular investment objectives, financial situation, or needs and is not intended as a recommendation appropriate for you. You must make an independent decision regarding investments or strategies in this analysis. Upon request, the advisor will provide a list of all recommendations made during the past twelve months. Before acting on information in this analysis, you should consider whether it is suitable for your circumstances and strongly consider seeking advice from your own financial or investment adviser to determine the suitability of any investment.
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