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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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Tags: #bitcoin #nvidia #amd #micron #semiconductors #technology #financials #sp500