Stock Trends
Vulnerable semiconductors, crashing gold miners and pending breakouts
Good morning,
Four of the Magnificent 7 reported earnings after the bell yesterday, and S&P 500 and Nasdaq futures are both up about half a percent in premarket trading. We’ll end today’s report by highlighting the pre-market moves and key levels to watch for Microsoft, Meta, Alphabet, and Amazon, but first, I want to look at:
Semiconductors most vulnerable to a sell-off
What gold miners may be telling us about gold
Two buyable breakouts in financials
Two big bases that haven’t broken out yet in energy
Follow-ups on recent small-cap long ideas
Hot List updates
and more!
Semiconductors most vulnerable in a sell-off
I’m highlighting three stocks that are extremely stretched relative to their 200-day moving averages. By definition, these are also some of the strongest uptrends, but given the risks I highlighted in the Playbook (and in this article for the CMT Association), plus the sell-off to start this week, I think they are worth flagging.
Sandisk is up (double-checks chart) 3,131% over the past year
And 211% above its 200-day moving average, which has honestly been about normal since it got a 200-day moving average. New all-time highs yesterday mean you can’t fight this trend, but my goodness.
Intel is 140% above its 200-DMA
Is this the best investment the government has ever made? On one hand, this is arguably a breakout 26 years in the making. On the other, this is literally double the most extreme reading it saw in the dot-com bubble.
Micron up 574% over the past year
The reading vs. the 200-day has actually cooled after a two-month consolidation, but it’s still a two-standard deviation extreme from its mean.
Gold miners are sending a bearish signal on gold
Agnico Eagle Mines testing critical support
