Semiconductors have shown relative strength, with AMD bolting higher on above-average volume during the Tuesday session. This morning, the Top Ten Nasdaq 100 stocks welcome, AMD, SWKS, LRCX, and MU to the most actives. NVDA, XLNX, and INTC round out the Top 20.
Summary
On Tuesday, Google announced big news for the world of gaming at GDC 2019, the Game Developers Conference in San Francisco. The company keynote did not disappoint, revealing its long-rumored cloud gaming platform. Google said it is the “vision for the future of gaming.” Chips stocks were higher in anticipation of the event.
“Google Stadia uses a custom AMD chip to offer 10.7 teraflops of cloud gaming power.” – The Verge
Advanced Micro Devices – AMD
“Pocket pivots” or “volume signatures” typically appear when institutions enter a stock “en masse.” Tuesday, these institutional footprints appeared on the AMD chart, eclipsing the previous ten (10) days of price action. AMD bulls were persistent in their positioning, as the stock is up again this morning (+1.81%).
Since volume precedes price and “Pocket Pivots” identify institutional interest, we are watching for confirmation today. AMD shorts will cover as well, which will add to any bullish move.
Also, keep an eye on (NVDA) this week. We are looking for a followthrough as the stock breaks out of a solid base. You can reference our comments presented on Monday and Tuesday here.
Unusual call option activity indicates further upside potential in, CREE, DOMO, DXCM, LRCX, and VNET. Stay tuned.
Join us today in the trading room for our LIVESTREAM broadcast during market hours, as we trade AMD, NVDA and other new positions. Watch, listen and trade from 9:20 AM to 4:15 PM Monday through Friday.
Happy Trading,
Vinny
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