COMMON SENSE SAYS AMD WAY OVERHYPED ON NEW NETFLIX OF GAMING $AMD $NFLX $NVDA $AMZN $AAPL $FB $T $INTC $ATVI $TTWO $MU $EA $MSFT $GOOG $SNE $QQQ

Twitter
LinkedIn
Facebook

COMMON SENSE SAYS AMD WAY OVERHYPED ON NEW NETFLIX OF GAMING $AMD $NFLX $NVDA $AMZN $AAPL $FB $T $INTC $ATVI $TTWO $MU $EA $MSFT $GOOG $SNE $QQQ $SPY $IWM $VZ $GME

Momentum investors have abandoned common sense and gone mad over a new announcement in the world of video games.

Alphabet’s Google GOOG,  GOOG has announced a cloud-based gaming service called Stadia. Stadia is meant to be the Netflix NFLX of gaming. Gamers will be able to stream complex games to their screens without needing consoles or high-powered graphic chips in their computers.

Let’s explore how the momentum crowd is viewing Advanced Micro Devices AMD incorrectly.

Chart

Please click here for an annotated chart of AMD. Please note the following:

• The chart shows there is a strong move in AMD’s stock on the announcement that Stadia will use a custom AMD chip.

• The announcement should not have been a surprise to anyone who carefully studies the gaming space. AMD chips have been used in consoles from Microsoft MSFT and Sony SNE.

• The chart shows that AMD’s stock broke out.

• Algorithms at The Arora Report show that a big part of the rise has been due to a short squeeze. In a short squeeze, short sellers panic and buy to cover their positions. This creates artificial demand for the stock.

• There are not many things that I know with certainty about the markets. You may be familiar with Arora’s Second Law of Investing: No one knows with certainty what is going to happen next. However, I do know with certainty that all short squeezes ultimately end. When a short squeeze ends, the stock falls. The process always creates a lot of bag holders in the momentum crowd.

• The chart shows the resistance zone. This means that the stock can go up a lot from here.

See also  BUYING AHEAD OF POWELL ON HOPIUM, KEY APPLE LEVEL, BITCOIN WHALES TAKE PROFITS

• The chart also shows two support zones.

• The chart shows that RSI (relative strength index) is overbought but the stock has room to run.

• The chart shows that the breakout has occurred on high volume. This is a big positive.

Technical analysis conclusion

Based on the foregoing, from traditional technical analysis, the conclusion is that this is a picture-perfect setup to back up the truck and buy AMD’s stock. Such a view may be reinforced by the following two factors:

• The short squeeze has barely started and can go on for a while.

• This market is controlled by the momentum crowd. The “momo” crowd can run up a stock much higher than can be justified based on fundamentals….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.

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