AMD - Consolidating under the $50 Mark - Breakout $52.50+

0. Notes to follow;

Comment:

1. Stock ran up to $52.75, then corrected with the market to $46.11; This was after earnings. In previous posts we discussed a little back draft, and some consolidation after earnings. This is it;

2. We have made a few attempts to hold $50, but it failed several times;

3. Coronavirus end of world stories have made things a little less bullish, but still moving forward nicely;

4. We are still in the channel from October, but right at the bottom of it;

5. We have broken out into a smaller consolidation channel right below the $50 mark;

6. We have a mild selloff today, based on a slowdown story out of China which was yesterday, so the market was once again late to the party. We bought a few extra puts before the close yesterday, as we felt a "China Slowdown Vibe" coming soon to a theatre near you; and that was today at the open;

"Report: Coronavirus Hitting Graphics Card, Motherboard Demand in China"

www.tomshardware.com...oards-graphics-cards

7. The stock dove to $47.75 right off the open almost, to form a new consolidation channel right below $50;

8. Then of course CNBC was running the stories about, "maybe just a delay in the orders so we will CATCH UP in subsequent quarters."

9. The market figured this out too, and at $47.75 we posted AMD $47.75 / $48.05 buying opportunity.

0. We had purchased more at $47.75 to $48.11 and then we SOLD calls against this new stock we want to keep, at the close at $49.30 or so. We sold the March 20, $50 Calls, just to help us if we stay and bounce under $50 for a bit;

1. So right now hang tight under $50, and stay away from options. Own the stock and patiently wait for the $50+ breakout to occur.

- drchelsea

Comment:

Consolidation right on schedule. You want this. I know you all would like daily crazy gains, but they are not sustainable. AMD is doing exactly what it needs to, to head much higher. We need a base, we need support. This is important.

Most important investing quality - Patience.

Trade active:

We may have some selling pressure today and buying opportunities:

Feb 10 2020 - 7:20AM

Coronavirus impact on semiconductors difficult to quantify, says Bernstein 07:20 QCOM, INTC, AMD, NVDA, AVGO, AAPL, NXPI, TXN, ADI Bernstein analyst Stacy Rasgon says it seems difficult to quantify the coronavirus impact directly on U.S. semiconductors, with potential issues both on the demand side and supply side. Most semi companies have at this point refrained from baking in nCoV impact, hence Rasgon would not be surprised to see issues crop up. Within the analyst's coverage only Qualcomm (QCOM) has yet baked in some amount of nCoV impact but it does seem that smartphones could be at ground zero for production and demand issues in the wake of the outbreak. Rasgon notes that Intel (INTC) has already guided to a very strong first half of the year PC environment and weak second half, so its seasonality is already thrown off, while AMD (AMD) is looking for significant year over year growth this year on the back of new products, and a shuttered China would seem to have the potential to impact things both on the production and demand side. Nvidia's (NVDA) gaming segment could suffer some weakness given china exposure and possible production slowdowns, the analyst notes, adding that for Broadcom (AVGO), outbreak issues impacting Apple (AAPL) production and overall handset demand could have an impact. For Rasgon's diversified names such as NXP Semiconductors (NXPI), Texas Instruments (TXN) and Analog Devices (ADI), the analyst notes that automotive is "of course something to watch.: