Andrew’s Newsletter – July 12 2017

Hello all,

High tech sector has had a great start for the week with 3 run up days in a round. Yesterday was very interesting moving day. The entire market was moving up nicely, but around 11:30AM (New York’s time), most stocks suddenly came down quickly. Dow Jones, S&P 500 and Nasdaq indexes all turned to red in a blink.

I right away searched around and saw a storm of media reports: Mr. Trump Jr. released an email chain on his discussion with a Russian lawyer. Wait a minute, what the heck why could this event cause the market to crash? What’s a joke! I saw a buying opportunity right there. I immediately posted a tweet on twitter, and also loaded some more AMD at 13.8 and NVDA at 153 . I hope you guys also added some on that sweet dip.

BTW, let’s follow me on twitter https://twitter.com/dranhandrew or stocktwits https://stocktwits.com/solidstockmove if you’re interested in my real-time trading ideas.

Back to the moves of a few of our favorite stocks today. AMZN has gotten back above the $1000 level, much faster than I predicted in the last newsletter. What’s a great leader! 52-week high at $1017 will be easily broken, shortly.

GOOG received an awesome news today, they won against a $1.3B French tax bill in the French court: https://www.bloomberg.com/news/articles/2017-07-12/google-wins-french-court-fight-over-1-3-billion-tax-bill. GOOG also hired lawyers to protect them against the $2.7B antitrust penalty by EU in last month. GOOG broke the $930 resistance today. $960 would be next stop, and a new 52-week high is at the corner.

FB made 52-week high today and seems doesn’t want to stop yet. Couple more weeks to earnings, and investors are expecting a great report; so a target of $170 before earning seems to be conservative.

After announcing the multi-project partnership with Baidu, NVDA bull run restarted and seems to be unstoppable. Many analysts has upgraded it which added more fuel to the rocket. Today, SunTrust upgraded it to Buy with a price target of $177, which is near my target of $180. More bullish, Needham Co raised the target to $200 from $130. After hour today, NVDA reached $163.3. Seems we will see it above $165 tomorrow.

Intel officially launched its newest Xeon server CPUs. Some early tests from independent engineers have shown it is not better AMD Epyc CPU while having nearly double in the price: http://www.anandtech.com/show/11544/intel-skylake-ep-vs-amd-epyc-7000-cpu-battle-of-the-decade. AMD Ryzen desktop CPUs also have been received all 5-star rates from the buyers on Amazon. What’s a great comeback, AMD! AMD’s gonna regain a significant market share from Intel in both server and desktop CPUs; it is inevitable. The future is so bright for AMD. My target of $17 this year seems to be so low!

Many high tech companies will report their earnings in next couple weeks. I’m bullish in the high tech sector’s earnings this year. Gartner, one of the most creditable business research company, just reported that the worldwide semiconductor revenue could reach $400B in 2017: http://www.gartner.com/newsroom/id/3758563. What’s a great number for the sector, which breaks the $300B record in 2010 and increases 16.8% compared to last year.

On the side note, I closed my VRX short position today that I shorted from $18. VRX has showed a strong recover. Some analysts upgraded it to $30. I will dig more into it to see what I should do next.

Enjoy the run in this bull phase of the market, guys!

Disclosure: I’m long AMZN, AMD, NVDA, MU, MITK.

2 thoughts on “Andrew’s Newsletter – July 12 2017

    • Hi Jack. Do you mean Costco? Its business is still good; but technicals look bad right now. I have no recommendation at this time; will revisit it next week. Thank you for asking.

      — A. Andrew

      Like

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