AFTER THE TRADE DEAL, CHINA TO REMOVE THE U. S. SWORD OF DAMOCLES — THIS AMERICAN COMPANY WILL BENEFIT $AMAT $QQQ $DJIA $SPY $INTC $KLAC $KLIC $TER $MU

Twitter
LinkedIn
Facebook

AFTER THE TRADE DEAL, CHINA TO REMOVE THE U. S. SWORD OF DAMOCLES — THIS AMERICAN COMPANY WILL BENEFIT $AMAT $QQQ $DJIA $SPY $NVDA $INTC $KLAC $LRCX $KLIC $ASML $TER $MU $MLNX $NXPI $QCOM $QRVO $SMH $XLNX $GOOG $MSFT $FB $AMZN

Nobody likes the Sword of Damocles hanging over them — certainly not if you are China, the second-largest economy in the world.

Oil used to be the lifeblood of the economy, but no more. The lifeblood of the modern economy is semiconductors. (Please see “Investors are misplacing threats to the U.S. stock market.”)

The U.S. dominates the semiconductor industry, and therefore China is highly dependent on U.S. companies. During the trade war, President Trump effectively used the U.S.’s position in semiconductors as a Sword of Damocles. It is natural for China to try to get out of this situation.

For investors, it is all about making observations, getting ahead of Wall Street and profiting. Which company’s stock will benefit the most as China attempts to reduce the U.S.’s dominance in semiconductors? Let’s explore with the help of a chart.

Chart

Please click here for an annotated chart of Applied Materials AMAT.

Note the following:

• Applied Materials is a supplier of equipment for semiconductor manufacturing based in Santa Clara, Calif.

• In its attempt to reduce dependence on the U.S. in semiconductors, China is likely to ramp up its semiconductor manufacturing and design capabilities.

• There is a potential for Applied Materials sales in China to significantly increase over the coming years.

• Applied Materials is in The Arora Report’s model portfolio, bought at $16. It is trading at $62.30 as of this writing.

• The chart shows that Applied Materials stock has been in a steady uptrend.

• The chart shows acceleration in the uptrend.

See also  FED’S FAVORITE INFLATION GAUGE RISES BY MOST IN A YEAR, BITCOIN SOARS, PUTIN’S NUCLEAR THREAT

• The chart shows resistance overhead.

• The pattern that the price is tracing in Applied Materials stock, in the past, has shown a high probability of a breakout above the resistance line shown on the chart.

• The relative strength index (RSI), shown on the chart, indicates that there is room to run up.

• The chart shows that the volume is low. This is a negative.

• In the stock market, Applied Materials has significantly outperformed the Dow Jones Industrial Average DJIA, Nasdaq 100 ETF QQQ  and S&P 500 ETF SPY.

• Applied Materials is a 5G stock. (Please see “How and when prudent investors ought to buy these 5G stocks.”)

How and when to buy

Those who are nimble may want to wait for a breakout above the resistance line shown on the chart and buy into the strength with a tight stop. Since this is a long-term position in The Arora Report’s portfolio, we will likely start a trade-around position for a shorter time frame on a breakout. We will provide a stop zone, target zone and appropriate position size. All investors should use trade-around positions. This technique can often double returns and reduce risks….Read more at MarketWatch.

A knowledgeable investor would have turned $100,000 into over $1,000,000 with the help from The Arora Report. NOW YOU TOO CAN ALSO SPECTACULARLY SUCCEED AT MEETING YOUR GOALS WITH THE HELP OF THE ARORA REPORT. You are receiving less than 2% of the content from our paid services. …TO RECEIVE REMAINING 98% INCLUDING MANY ATTRACTIVE INVESTMENT OPPORTUNITIES, TAKE A FREE TRIAL TO PAID SERVICES.

See also  AN OPPORUNITY IN MEMORY MAKER MICRON (MU) ON AI FRENZY

Please click here to take advantage of a FREE  30 day trial.

Check out our enviable performance in both bull and bear markets.

Subscribe to 'Generate Wealth'

Free Forever

More To Explore

30 Day Free Trial

Cancel within 30 days and you owe nothing

When you take a FREE 30 day trial, you get access to powerful techniques used by billionaires and hedge funds to grow richer. You can continue to use these powerful techniques to grow richer even if you cancel your subscription. You come out ahead by subscribing no matter how you look at it.

A fortune is to be made from AI stocks.
Get the list of 18 AI stocks to grab your share of the profits — no cost to you.

A fortune is to be made from AI stocks.

Get the list of 18 AI stocks to grab your share of the profits.

AI is a $1 Trillion Market

Making A Fortune
In Artificial Intelligence

Golden Age of Artificial Intelligence