Andrew’s Newsletter – July 09 2017

This is my first newsletter on this site, although it is not the first one I wrote and emailed out to my friends. This newsletter summarizes the move in last week of a few favorite stocks.

The last 3 days of last week showed very encouraging moves after multi-day high tech sector sell-off. After a beatdown due to EU antitrust penalty, GOOG went down and visited the support at $900. Friday, GOOG bounced back to $918. The next resistance is right at SMA50 which is around $938.  If it breaks that resistance, next visit will be $960, then a new 52-week high would come.

Although MU released good earnings report which beat the estimates, the market surprisedly beat it down. That should be due to the effect of entire high tech sell-off. Last week, MU went back up, and stayed about $30. It is a strong buy at this level. I believe MU will go up in the remaining of this year. The reasons are that memory price is increasing, and demand from its customers will be high due to large production for the end of year holidays sales. The company also gave a higher guidance for next quarter. I believe MU can reach $40 this year.

AMZN made a smart decision on buying Whole Foods Market. After a brief pullback, it bounced up and closed above $975. If there is nothing surprised from the market, AMZN will get back above the $1000 level in next couple weeks.

NVDA showed a very strong move last week even though under serious attack by short sellers, especially from Citron Research. Citron gave NVDA a strong sell rate with $130 target. I went through its report, and saw that the reason backing up the attack is so weak and irrational. Citron also was wrong in December last year when predicted that NVDA would decline to $90.

NVDA’s play in GPU and AI is still very strong. It just announced a big partnership with Baidu in many projects related to smart cloud computing, self-driving cars, and artificial intelligence projects in China research institutes and government departments. Big revenue is there, right on the table. Technically, NVDA next resistance is at $160; and I think it would hit $180 this year. NVDA is a strong buy!

FB seems to be resistant to the market sell-off recently. The chart is quite boring with the price moves around $150 and not much volatile. Let’s wait for its earnings in next couple weeks to see what will happen.

AAPL is on the downtrend short term. Its next supports are $140 and $130. AAPL is also expected to report its earnings at the end of this month. The next big catalyst could be iPhone 8 release. Seems dead money there for a while now.

AMD closed last week above $13 which was the war line between bears and bulls in the last few weeks. The close above $13 is very encouraging which supports a uptrend ahead. The recent attack by Goldman Sachs was a joke; and I hope you guys took advantage of the recent pullback to load up more AMD shares. AMD has shown a game changer in CPU chips in both high-performance servers (Epyc) and workstations (Ryzen). Next catalyst will be Vega GPU and mobile processors. CEO Lisa Su has seriously turned around AMD. Positive earnings is expected in next year or even right in Q4 this year. I maintain my target for AMD in this year of $17, which is quite conservative.

TSLA got topped at $380 and is going down the hill. The run down is scary fast and hit the $300 support. It recovered a bit on last Friday, but short-term downtrend is there when it broke SMA50. I will watch it closely next week to see whether it is a real recover or only a dead cat bounce. If it goes below $300, then $260 is the next visit.

COST showed a disappointed move last week, broke down SMA200. Downtrend could be continue. There is a weak support at $150, then next is $145. I sold my calls; will watch and wait for a bounce.

End of this newsletter for now. Thank you for reading!

Your comments are welcome. Please also subscribe to follow my next posts.

Disclosure: I’m long AMZN, AMD, MU. I’m short VRX. I may go long NVDA and short TSLA in next couple days.

7 thoughts on “Andrew’s Newsletter – July 09 2017

  1. Thanks for your time and continuing your Andrew’s Stock Market Newsletter-ASMN. It’s such a diligent compiling newsletter.

    Bravo

    HM

    Like

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