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 to get the Weekly Monster Market Commentary and join the 3,338 subscribers getting it for FREE!
June 14 – Stock Mentions: SMH, MU, NVDA, AMD, QCOM, LRCX
- S&P 500 Futures – 10 points
- US 10-Year 2.06%
- Dollar Index 97.17
- VIX 16.25
- Oil $52.08
- Japan Nikkei +0.40%
- China Shanghai Comp. -0.99%
- Hong Kong HSI -0.65%
- South Korea Kospi -0.37%
- Germany DAX -0.83%
- UK FTSE -0.60%
Will Semis Sink Stocks on June 14
Stocks are pointing to a lower opening on June 14, and this will give us a good chance to see how resilient the market is. The negative news out of Broadcom last night is enough to send not just the chip stocks lower but the entire market. It will be interesting to see if investors use this weakness as an oppurunity to come into the market and scoop up stocks. Or perhaps even pressure the market lower.
The decline in the E-mini S&P Futures looks minor at this point and doesn’t point to much damage on any of the technicals at this point. (Premium content: 2 Big Indicators To Watch)
Chips Stocks – (SMH)
The SMH had appeared as if it was getting ready to make a move higher. However, that changed last night. Should the ETF fall below $102.25 today, it likely means a retest of support at $100. But if the ETF can hold above $102.25, then it is a good sign that the ETF can survive the Broadcom fall out.
Micron is one of the next chip companies to report results, and from the way things are set up, I am beginning to believe they will have to reset their second-half recovery expectations. The stock has managed to hang on a few times at support around $32. But this will be a real test for the stock. A drop below $32 sends the share much lower maybe to $29.
Nvidia looks as if it may be heading back to $139.
Qualcomm may be heading to $65.
AMD is in the same tight spot and looks like $29.40 is its next stop.
Lam Research (LRCX)
Lam Research could be on its way to $169.
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 results.