If the way Nvidia is trading is an indication that the semiconductors run is far from over, then we have to believe some additional names down the cap scale will attempt to play catchup.
One of those names is Advanced Micro Devices.
Check out the ground that $AMD has to cover to get back to all-time highs:
My portfolio could benefit from some directional diversification right now. As such, I had my eye on a bearish bet this morning to help balance out my mostly directionally long exposure.
And one name that I and our analysts discussed in our meeting yesterday appears to be hanging on the precipice of a potentially large fall. The company will be announcing earnings on July 4th (who does that?) and I think that might be the final nail in the coffin to send this stock lower (if not sooner).
If there is one thing that stands out from any conversation with Brian Shannon about the trading process, it is this:
For discretionary traders, there are no rules. Instead, there are "guidelines."
And because Brian is human, he occasionally breaks his guidelines and suffers the same consequences as anyone else. Everyone gets what they deserve. Even a trader of 30+ years like Brian Shannon.
If a trader buys the dip or sells the rip without a plan to control her risk then she, too, will get what she deserves. Eventually. The market is always on the hunt for our weaknesses.
Last week in Sonoma, we uncovered a bunch of potential trades that are setting up in a variety of sectors. But one of them is sending a glaring signal that it is ready for us to get involved right now, so let's not waste any time.
As this bull market shows signs of resuming its march higher, we're setting our sights abroad because U.S. stocks don't have a monopoly on great setups. There are some great companies overseas that trade here in the U.S. that are also setting up for great stock rallies.
In today’s Options Jam Session, we reviewed how the profits from one delta-neutral credit spread more than paid for the losses on another, and I demonstrated what to do with a big winner that has the potential to pay for a lot more losses while still leaving us in the green!
This is how trader math works. Lose frequently and small, win occasionally and big. That simple heuristic is the key to long-term success.
But of course, it’s not easy.
We have to battle against our strong urges to close out winning trades too soon.
In fact, in the $APH trade that I demonstrated in today’s session, you’ll see there were several opportunities for me to get scared and pull the trigger to exit BEFORE our big profits accrued. This is why having an unemotional plan in place ahead of time is so valuable.
Next to individual trading plans, these weekly review sessions are one of the most valuable things I do each week to keep myself on track with my trades.
I mean, it's right there in the name. This company makes no bones about what they do. And I'm into it. Especially when I'm looking for a leveraged play into the metals sector for a potentially big move.
Buying here might not be for the feignt of heart, but if you love gap-no-go patterns with a long time horizon to play out, this might be the golden ticket.
