Taiwan Semiconductor Manufacturing Company Ltd.NYSE
Description
⋅
Often times during countertrend moves, price action can become choppy, overlapping, and difficult to read, let alone trade.
It is important to be continually monitoring charts of individual issues, as well as the major averages, as often times, when one is choppy and "unreadable," the other will give a tell as to where you are, technically speaking, within any particular market cycle.
For example, while the charts of the major averages have become choppy as of late, and FOMO investors exchange financial blows with traders who are looking for the proverbial "top-tick," to get short, I have taken to looking for the omnipresent "tell' stocks.
These are stocks that are typically widely held, large-cap, and very liquid stocks, and as such, present a descent proxy for the overall market.
At this moment, Taiwan Semiconductor (TSM) presents us with a very clear roadmap for where we are.
1) it has completed a very clear 5 wave impulse from the 1998 low
2) Clear alternation between wave 2 and 4
3) A textbook 3 wave counter-trend move of the March 2020 bottom.
When the current counter-trend rally exhausts itself, the market, including TSM will be engulfed in a very strong, and profitable, wave C. There will be virtually no stock that will be unaffected, as correlations converge on 1.0
Hey, on the long run the stock market is moved by fundamentals and TSM is a very solid company. Something catastrophic should happen to TSM for this to happend.
unforgiven
⋅
@raiva33, do you get paid by the fundamentals or the stock price?
Jeefunk58
⋅
completely non-sense. given political factors from US gov for included TSMC as national strategic alliance, reject orders from Chinese chipmakers and infamous Hua-wei.
TSMC is in max capacity and looking to expand production lines. This stock will be hitting 100+ in near future.
TSMC is near monopoly in its industry. Won't happen unless the entire market experiences dotcom bubble like crash again, which yes could definitely happen. If TSM lost this much in value, most stocks would lose 90%.
unforgiven
⋅
@Dex4Sure, well you better hold your dex because a major top is forming and when correlations go to 1 so will your TSM
Dex4Sure
⋅
@unforgiven, I did hold all the way up BTW... Technical analysis without fundamental analysis usually fall on their arse, like in this case.