20-Year Pro Trader Reveals His "MoneyLine"
Ditch your indicators and use the "MoneyLine". A simple line tells you when to buy and sell without the guesswork. It’s a line on a chart that’s helped Nic Chahine win 83% of his options buys. Here's how he does it.
- Advanced Micro Devices, Inc (NASDAQ:AMD) shares are trading higher Tuesday following Daniel Loeb's hedge fund Third Point disclosed new stakes in AMD.
- As per the filing, the fund bought 1 million AMD shares at roughly $98, valuing the stake at $98 million. It forms 1.6% of the total fund.
- Also, Bernstein's comments that PC shipments appear to be normalizing at pre-COVID levels are adding to the gains.
- The PC market remains in correction following two years of pandemic-fueled demand pull-forward, Bernstein analyst Stacy A. Rasgon notes.
- Overall PC shipments declined by almost 30% YoY in Q1, marking the second consecutive quarter with some of the worst PC growth in the industry's history.
- CPU channel inventory drain was still ugly in Q1 but less ugly than in Q4. Notebooks appear closer to normalizing, while desktop undership is steep but is now sharply underway (and desktop is smaller than notebook).
- CPU ASPs are now falling as Intel Corp (NASDAQ:INTC), and AMD take actions to clear the channel. The slides appear particularly extreme for AMD.
- Desktop CPU ASPs fell mid-single digits QoQ for both Intel and AMD, though AMD's desktop ASPs remain far off the recent peak (almost 20% below), while Intel's ASPs appear more resilient.
- In the notebook, Intel's ASPs fell ~6% QoQ but remained within the prior typical range, but AMD's fell 19% QoQ and are over ~40% below the peak.
- The analyst believes the correction probably has another quarter or two, but normalization during Q3/Q4 seems likely.
- INTC expectations into year-end appear reasonably conservative, AMD potentially a bit more aggressive.
- The analyst had a Market Perform rating on AMD with a price target of $80. He had a similar rating on Intel with a price target of $30.
- Price Action: AMD shares traded higher by 5.27% at $102.52 on the last check Tuesday.
- Image by cebbi from Pixabay
20-Year Pro Trader Reveals His "MoneyLine"
Ditch your indicators and use the "MoneyLine". A simple line tells you when to buy and sell without the guesswork. It’s a line on a chart that’s helped Nic Chahine win 83% of his options buys. Here's how he does it.
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