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Roku’s Borrow Rate Rises, plus Biogen, Acadia, Tesla, and Nvidia
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The sell-off continued again with the S&P 500 trading down to roughly 2,646, where a sturdy level of support lies. So for now, it looks like we have held, and my guess is that we could have another few points to the downside at most, and I expect that we turn higher again.
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Biotech
Biotech shares have also found some support around $113.75 on the broader NASDAQ Biotech $IBB ETF. I drew in a downtrend, just because it seems prudent at this point to do so, from the peak at $119.25 to $115.70. The breakout from the past week seems convincing enough to me to think we begin moving higher.
The XBI also failed at resistance, and we have seen a retracement the past couple of days as well. For now, the setup is still bullish, and if the pullback extends to $93.60, it is not the end of the world.
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Incyte
Incyte shares have pulled back too, bringing into question the breakout. But for now, the pullback appears to be a fill the gap scenario more than a then a failed breakout. Tomorrow will be telling.
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Regeneron
Regeneron shares have risen, but a big test looms at $352 with an intense level of resistance waiting, my guess resistance holds, and the stock moves lower.
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Acadia
Acadia shares fell hard in recent days but have held support at around $25, and I think that means shares could be headed back towards $26.5. My hunch or gut feeling, as we approach the depression data later this fall, we may see some buyers or traders looking to cover short ahead of the news, and that could help to lift the price. Short Interest stood at roughly 10.3 million as of February 28.
Biogen
Biogen shares also started to bounce a bit too. It would be a positive should this stock start rising again for the group.
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Roku
Roku’s borrow rate continues to surge, according to TradeAlert, the rate is over 100 percent. Insane.
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In fact, we can also see the implied volatility levels on the options are rising the further into the future one goes. It would suggest that traders are betting on the volatility in the stock to continuing rising, and thus the risk in the stock is rising as well.
As of the February 28, short-interest surged to 9.946 million shares, representing 63.5 percent of the float! That is massive!
ROKU Short Interest data by YCharts
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AMD
AMD shares are entering a danger zone, with the stock moving towards the cusp of a breakdown. The $11.20 technical support significant, a break below send the price towards the $10.50 region.
Tesla
In the latest round of Tesla drama, CNBC is reporting that the company is churning out flawed parts. When I saw this, I was like “is the old news or new news?” That is right it was just at the end of January they reported batteries were being put together by hand.
I’m not sure what the delivery rates or how batteries are being assembled, I’m not even sure today’s news is even new? It sounds a lot like old news. But it doesn’t matter because the stock went down as a result.
Somebody made a big bet share would fall to about $250 bucks today, with the purchase of about 4,000 contracts of the April $250 puts. The notional value is only about $500k. Not huge, but undoubtedly interesting.
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Nvidia
Today was RBC’s turn to raise its price target on NVIDIA, by an astonishing $5 to $285, talk about sticking your neck out there. But what I find interest is that price adjustment comes despite Nvidia potentially facing a notable slowdown in cryptocurrency benefits. But of course, they see a scenario of $12+ in earnings per share by the year the year 2021, on data center and gaming! That is nearly $2.50 ABOVE consensus of $9.50 per share. So why only give the stock 15 percent upside, if you are looking for earning to come in 26% higher than consensus. I don’t know. Sorry, I don’t get it.
Until Tomorrow! Good Luck!
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Tags: #sp500 #technology #roku #tesla #nvidia #biotech #biogen #incyte #acadia
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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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