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Previewing Micron, Plus Breakout’s In Netflix, Apple- The Week Ahead
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Believe it or not, the week of December 18 will be the last full week of 2017. The following week will be cut short by one day, due to the Christmas holiday. 2017 seems have gone fast, and for the most part was a very a good year.
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The S&P 500 is up by nearly 20 percent on the year, and it surely had a spectacular run since October, when it was only up by 12.5 percent. With Tax reform now pretty much wrapped up, and all the major central bank meeting now behind us, it would seem there is little if any reason for the S&P 500 not to continue to rise over the next nine trading session.
Consumer discretionary stocks like Home Depot, McDonald’s, Costco, and WalMart have had incredible runs, nearly on par with the like of Amazon and Netflix. The gains in the group are pretty amazing, Costco is the worst performing name, and it is up nearly 21 percent.
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Micron
Micron will come into focus this week when it reports fiscal first-quarter results. Analysts consensus estimates are looking for the Micron’s revenue to have climbed by 23.5 percent to $25.10 billion while looking for earnings to be up by 61.2 percent to $8.00.
The long straddle options strategy is pricing in a 12 percent for the stock, with a range of $37.95 to $48.05, using the $43 strike price, set to expire on January 19. Callsย are favored with nearly 80,000 contracts of open interest, versus only 4,500 contracts for the puts. The $50 strike price calls have the highest open interest with almost 100,000 contracts open, with the calls trading a price of $0.50. It would mean shares of the stock would need to rise to $50.50 just to break even, an increase of nearly 19 percent from the stocks closing price of $42,40 on Friday, December 15.
Analysts revenue and earnings estimates for Micron’s current quarter have been steadily rising over the past three months.
MU Revenue Estimates for Current Quarter data by YCharts
But the market has been nervous about Micron going into this print, with shares of the down over 14 percent since the end of November.
Micron stock has a lot riding on this coming quarter’s results, for sure.
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Tesla
Tesla shares have rallied sharply since December 5, up by about 13 percent. Reports of Model 3 production nearingย 5,000 per week is helping to lift shares. In fact, the article even site a google sheet owners are now piecing together.ย The techincal chart suggest the stock might get a push above $350 this week.
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Netflix
Netflix was able to rise above resistance around $190 this past week, and that breakout could help to push shares back to over $200.
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Facebook shares are also nearing a breakout; should shares cross $180 this coming week, it would signal a breakout and higher price to come.
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AMD
AMD has been very tricky lately. I have poorly struggled with trying to get this one right. Every time I think it is about to rise, it falls, and vice versa. The chart has looked bearish to me in recent days, but then the stock goes and has a solid day on Friday, making me think a reversal to the upside is now coming. But I have lost my way on this stock, so it is anyone’s guess.
The one thing I do know is that after an amazing run in 2016, 2017 has been a major disappointment for AMD and its shareholders.
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Activision
Activision Blizzard, had a rough started to December, but not only has shares recovery, but they have also broken out as well.
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Apple
Apple is on the cusp of a significant breakout too.
Hope this helps you get your week started! Good Luck
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Watch my interview with Cheddar
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Seeking Alpha Author Michael Kramer joins Cheddar to give his top three predictions for 2018 market trends. The first one: Tesla will hit a $100 billion market cap! He explains why he’s comparing the auto company to Amazon in his analysis and prediction.
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Free Articles Written By Mike:
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Why Starbucks Is Poised To Rise Over 20% In 2018
IBM’s Stock May Rise 10% In Short-Term Rally
Nvidia’s 11% Plunge May Be Just the Start
Why Qualcomm May Have To Pay 20% or More For NXP
Facebook Shares May Rise 20%, Options Trades Indicate
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Biotech Stocks May See a New M&A Wave in 2018
Why Tesla’s Stock Could Rally Into Yearend
Disney’s Stock Advance Could Be Just The Beginning
Netflix Shares Could Be Headed Lower
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Tags: #technology #amd #micron #tesla #netflix #apple #activision