The long Memorial Day weekend gave traders a break and restored a little of their nerve, but it’s clear from recent days that the mood is still too fragile for the market to really shake off its blues. Meanwhile, I expect that Advanced Micro Devices Inc. (AMD) will drop at least briefly below $110 in the next three weeks, advises Hilary Kramer, editor of High-Octane Trader.
At best, key stocks are riding weak near-term support while we all wait for the next bad headline to once again scatter the bulls. That headline might come from the ongoing trade wars, where global negotiators now apparently have a deadline to make their best offers and take what they get. That’s a lot of pressure and not a lot of time. Disappointment is almost inevitable.
Advanced Micro Devices Inc. (AMD)
We have almost three weeks before the AMD put options I recommended expire. For once, time might be on our side to get a better exit...maybe yet another win, probably a smaller loss.
AMD was barely able to test the $120 level at last month’s brief peak. Otherwise, you’ve got to go back to before the trade war to see that level. Unless the world gets dramatically better than it has been since January, odds are good.
In the meantime, I’m looking to bring another position online behind AMD. Slow but steady is our mantra here.
