Could The Real AMD Seller Please Stand-Up – Monster Daily Commentary
Lots of charts today, covering the S&P 500, AMD, Tesla, Amazon, Netflix, Regeneron, Nvidia and Facebook. Stock
So much for those “warning signs” the media was flashing last night. But the most entertaining part of today’s rally is that we closed precisely were we peaked yesterday, it was a coincidence, right!? Not likely. Like I wrote yesterday, we gapped higher yesterday morning, dragged out feet lower the rest of the day, and today the market closes were we started. What a joke! Seriously this market is just a machine/algorithm driven marketplace.
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The chart says it all, and yes it has become just that predictable. Anyone reading this column long enough knows this happens all the time, and this is not the first time we have written about it.
An article I had written some time ago, was picked up by MarketWatch.com and was published as their chart of the day, about my earlier calls on the predictability of the market.
This next chart of AMD could be viewed two ways, either sad or a joke, just look at it. Raise your hand if you think there is a seller of AMD at $12.20? Whomever the trader is on this one needs to go back to school, or the algo’s need some serious tweaking. You have to be kidding me.
Tesla shares officially broke out last week when it finally began moving away from a multi-month downtrend, and it continues to trend higher, closing right around $348. Notice the stock is sitting right at resistance, but the relative strength index is still low enough that the stock should have plenty of juice left to get the price up to nearly $360 over the short-term.
Amazon and Netflix
Amazon and Netflix were two stock that did not go up today, but are you surprised? These stocks have been ripping in 2018, and have become entirely overextended. In fact, the RSI on Amazon is at 78, while Netflix is just back to 71.
Amazon is still trending in higher, that has not changed, and with earnings looming the stocks run is likely not finished.
Netflix is still trending higher as well, and it gets its turn to report result this coming Monday.
The NASDAQ Biotech ETF ($IBB) bounced back nicely, up nearly 75bps. The ETF just continues trending modestly higher, and that is what matters.
Keep an eye on Regeneron this one is getting close a big breakout, or breakdown.
Nvidia shares tested support at $218 and held steady, a positive sign for sure.
Facebook shares just continue to hug the uptrend, and that is a good thing, a rebound to $188 is likely coming.
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