This column is my opinion and expresses my views. Those views can change at a moments notice when the market changes. I am not right all the time and I do not expect to be. I disclose all my positions clearly listed on the page, and I do not trade my account on the stocks spoken of in this column unless fully disclosed. If that does not work for you stop reading and close the page. Do not bother me or harass me.
Otherwise, enjoy the column!
Subscribe to the Monster Stock Market Commentary and join the 1,958 subscribers getting it for FREE every day!
Bitcoin’s Big Fall, and Nvidia, AMD Fallout- The Monster Week In Review
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.
[vc_row css_animation=”” row_type=”row” use_row_as_full_screen_section=”no” type=”full_width” angled_section=”no” text_align=”left” background_image_as_pattern=”without_pattern”][vc_column][vc_tweetmeme type=”follow” follow_user=”michaelmottcm” show_followers_count=”true” large_button=”true”][/vc_column][/vc_row]
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.
Sign-up for our premium content on Seeking Alpha Market Place – “Reading The Markets” and a get Two Week Free Trial Period
Premium Content: Benefits include the ability to reach out to Mike with questions through a chat room, direct message, or comments.
We will respond to questions in short order and will respond to questions with full-post or video segment, just not one or two-word answers.
Just $40 per Month
Disney- The Market Finally Get’s It
Why The FANG’s Could Lead In 2018
Free Articles Written By Mike:
AMD and Nvidia, Bitcoin Fears Maybe Overblown
Nike and Home Depot May Be Ready To Fall By 10%
GE’s Stock Investors Should Brace for More Pain
Apple Chipmakers Are Ready To Rebound
Micron’s Earning Blowout May Fuel 14% Stock Rebound
Why Verizon’s Bulls Are Even More Bullish
Microsoft Shares May Rise By 17%
Costco May Be Heading Toward a 10% Pullback
Why Intel Is Ready for a 30% Breakout
Apple Chipmakers Are Ready To Rebound
Micron’s Earning Blowout May Fuel 14% Stock Rebound
Why Goldman, Morgan Stanley May Rise At Least 15%
Micron Is Poised To Jump On Earnings, Options Trades Indicate
Tesla May Continue To Rise On Positive Sentiment
AMD May Fall By 20% As Short Interest Surges To 5-Year High
Disney Is Poised to Break Out on Fox Deal
We offer a lot of great commentaries all week talking about the major and relevant market events. Be sure to subscribe to get all our free commentaries sent directly to your inbox or follow us on Twitter.
Join our 1,958 Daily Subscribers And Get This Commentary In Your E-Mail! Subscribe
-OR-
[vc_row css_animation=”” row_type=”row” use_row_as_full_screen_section=”no” type=”full_width” angled_section=”no” text_align=”left” background_image_as_pattern=”without_pattern”][vc_column][vc_tweetmeme type=”follow” follow_user=”michaelmottcm” show_followers_count=”true” large_button=”true”][/vc_column][/vc_row]
Michael Kramer and the Clients of Mott Capital own shares of TSLA and NFLX
Mott Capital Management, LLC is a registered investment adviser. Information presented is for educational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any specific securities, investments, or investment strategies. Investments involve risk and unless otherwise stated, are not guaranteed. Be sure to first consult with a qualified financial adviser and/or tax professional before implementing any strategy discussed herein. Upon request, the advisor will provide a list of all recommendations made during the past twelve months. Past performance is not indicative of future.
© 2017 Mott Capital Management, LLC. Use, publication or reproduction in any media prohibited without the permission of the copyright holder.
Tags: #bitcoin #nvidia #amd #micron #semiconductors #technology #financials #sp500