The watchlist was uploaded to the trading room, outlining winning stock picks for the week. Many of these IBD50 names are set up to take advantage of the bullish flow that has yet to dissipate. Despite the current cycle extremes, we have a bit more room to go before previous peaks have been reached.
Watchlist for the Week – Semiconductors
SWKS and MU are trading higher in the pre-market session. Use your Trade of the Day setup (ToD) for entry and stops initially. Many of these stocks will be higher by year-end, so they will likely be swing positions if they close at the highs of the day.
NVDA and AMD were referenced as stellar plays this weekend, pointing to China’s ban on crypto-currencies. NVDA target was lifted to $210 (BAML).
RBC Capital upgraded Applied Materials (NASDAQ: AMAT) from Sector Perform to Outperform with a price target of $55.00 (from $48.00).
Analyst Amit Daryanani is bullish ahead of the company’s Analyst Day on Sept. 27. The analyst expects the company to achieve EPS of $4.00-$50 by 2020 as WFE growth becomes more stable, sustained share uptick and display tailwinds, margin expansion and tailwinds from share repurchases. Daryanani further comments “the analyst day will be a positive event and long-term, as investors appreciate the limited cyclicality in SPE sector multiples, will shift higher enabling outsized share appreciation.”
With the cycle forging higher, trailing your stops higher is the best course of action. Let your winners run and take some off the table along the way.