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June 14 – Stock Mentions: SMH, MU, NVDA, AMD, QCOM, LRCX
US Markets
- S&P 500 Futures – 10 points
- US 10-Year 2.06%
- Dollar Index 97.17
- VIX 16.25
- Oil $52.08
International Markets
- 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.
S&P 500
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 (MU)
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 (NVDA)
Nvidia looks as if it may be heading back to $139.
Qualcomm (QCOM)
Qualcomm may be heading to $65.
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[youtube-feed feed=7]AMD (AMD)
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.
That’s it.
Mike
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Charts used with the permission of Bloomberg Finance L.P. 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.