chuckination
Long

MLNX: Reuters Reports $7b NVDA Buyout Offer on Table

NASDAQ:MLNX   MELLANOX TECHNOLOGIES LTD
News media is reporting that NVDA has a $7b offer for MLNX on the table, and that's a $1.1bn premium for MLNX shareholders while it is currently hovering just days off of the last 52-week high. I would love to have an easy 18% gain on short term capital that I haven't consistently seen since the early weeks of January, wouldn't you?

RSI is high since they're mere days off the current 200 day high, but my hypothesis is that this news of the buyout offer made with a solid premium should be enough to drive shares further upward with an impending rally against the current downward facing market. MACD is still strongly positive and the freshly negative histogram is just the byproduct of short term price consolidation that will likely shake off in the pre-market tomorrow. ADX is logging a strong trend at nearly 40, so good news is just the spark this fire needs to rally back up again. +DI has fallen due to price consolidation, but -DI is still down indicating that very little negative price action has occurred, and my theory is that its rally needed a break from its very high alpha against the broader market.
Trade active: Nvidia has announced an offer of $125 for an 8.5% premium remaining over the current price of $118 after a prior 8% climb. The math is simple here, want an easy return of 8%? Comfortable setting your stops in case the deal is rejected? I don't think it will since it will give MLNX access to some of the best chip designers and best fabs that money can buy with NVDA's pocketbook.
Trade closed manually: Eh, this got me bored. Every trade holds a lesson to learn, and this definitely taught me that once the price is set, not much happens until it either closes or falls apart.
Sound engineering requires a firm basis of scientific theory, mathematics, experience, and a little bit of luck; so does a successful long-term investment strategy.

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