INTC short position Strong Bearish Trend!!
1: Testing the 100 EMA resistence
2: Stoch overbought
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INTC
Bearish MA Cross For IntelOn April 7, 2017, the Intel Corporation ( INTC ) crossed below its 100 day moving average (MA). Historically this has occurred 241 times and the stock does not always drop. The stock has a median loss of 4.249% and a maximum loss of 34.757% over the next 10 trading days.
When we take a look at other technical indicators, the relative strength index (RSI) is at 54.9964. RSI tends to determine overbought and oversold levels as well as likelihood of price swings. I personally use anything above 75 as overbought and anything under 25 as oversold. The current reading declares the stock is relatively neutral, with no clear volatile price swing on the horizon.
The true strength index (TSI) is currently -4.9091. The TSI determines overbought/oversold levels and/or current trend. I solely use this as an indicator of trend as overbought and oversold levels vary. The TSI is double smoothed in its calculation and is a great indicator of upward and downward movement. The current direction declares the stock is moving up.
The positive vortex indicator (VI) is at 1.1026. When the positive level is higher than 1 and higher than the negative indicator, the overall price action is moving upward. When the negative level is higher than 1 and higher than the positive indicator, the overall price action is moving downward. The current reading declares the stock is steadily moving down while the negative indicator is moving up and cementing this sentiment.
The stochastic oscillator K value is 66.3386 and D value is 71.8470. This is a cyclical oscillator that is highly accurate and can be used to identify overbought/oversold levels as well as pending reversals. I personally use anything above 80 as overbought and below 20 as oversold. When the K value is higher than the D value, the stock is trending up. When the D value is higher that the K value the stock is trending down. The current reading declares the stock just came out of an overbought level and should continue to move down.
Considering the moving average crossover, RSI, TSI, VI and stochastic levels, the overall direction appears to be heading down. Based on historical movement compared to current levels and the current position, the stock could lose another 1.76% over the next 10 trading days. Of the previous four times the stock has crossed below the 100 day MA, it has had a minimal drop of 1.191%.
Big short?Call me crazy but I think AMD is going to fill some serious gaps downward. The stock is overly valued. Look what happened to the stock in 2011 after they released the FX series. It was nothing but hype. The company also have one of the worst balance sheet. Someone brought up a good point on StockTwits that the book value on this thing is $.44. So current valuations are WAY OFF the chart trading at 33 times the book value. I think this thing will take a serious dive. Only time will tell.
Intermediate Gain For INTC, Set To Drop FirstOn March 31, 2017 Intel Corporation ( INTC ) crossed above its 100 day moving average (MA), while the 50 day MA crossed below its 150 day MA. This multiple cross event has never occurred before. Historically the stock has crossed above the 100 day MA 241 times. When this happens, the stock does not always continue to gain. It has a median gain of 5.777% and maximum gain of 34.615% over the next 15 trading days. Historically the 50 MA has crossed below the 150 MA 33 times. When this happens, the stock has dropped at least 0.05%. It has a median loss of 4.464% and maximum loss of 23.498% over the next 15 trading days.
When we take a look at other technical indicators, the relative strength index (RSI) is at 57.6486. RSI tends to determine overbought and oversold levels. I personally use anything above 75 as overbought and anything under 25 as oversold. The current reading declares the stock is neutral but heading upward.
The true strength index (TSI) is currently -13.7715. The TSI determines overbought/oversold levels and/or current trend. I solely use this as an indicator of trend as overbought and oversold levels vary. The TSI is double smoothed in its calculation and is a great indicator of upward and downward movement. The current reading declares the stock is trending down, however, the indicator recently hit a low point and has begun to climb.
The positive vortex indicator (VI) is currently 1.1253 and recently crossed above the negative indicator. The VI determines current trend and direction. When the positive level is higher than 1 and higher than the negative indicator, the overall price action is moving upward. When the negative level is higher than 1 and higher than the positive indicator, the overall price action is moving downward. The current reading declares the stock is trending upward.
The stochastic oscillator K value is 84.77 and D value is 72.55. This is a cyclical oscillator that is highly accurate can be used to identify overbought/oversold levels as well as pending reversals. I personally use anything above 80 as overbought and below 20 as oversold. When the K value is higher than the D value, the stock is trending up. When the D value is higher that the K value the stock is trending down. The current reading declares the stock has been trending up but is approaching the overbought level--due to signal a crossover within a week and lead to a decline in the stock.
Considering the moving average crossover, RSI, TSI, VI and stochastic levels, the overall near-term stock direction appears to be trending upward. Based on historical movement compared to current levels and the current position, the stock could gain 4.3% over the next four weeks. I am tracking two scenarios with the latter being most likely. The first one is the stock goes up to my target line without a significant drop. The likely course, the stock could drop by mid-April to the support line of its current trend which would satisfy the stochastic reading. After this drop, the stock would be able to hit my target level of 37.65.
AMD: Short after a disappointing Ryzen releaseAMD's chip is weaker than INTC's one in many regards, although an improvement compared to previous chips. I'd still like to own one, but the hype implied it'd beat INTC's offerings, which it didn't. Valuation and the fundamental factors at play imply we can short with comfort.
Good luck,
Ivan Labrie.
Portfolio update: I'm long a few thingsThis is how my equity portfolio looks on the long side -plus a stake in $RVLT-. I also have shorts in $NVDA and $NFLX, which -if we consider that $CEF and $TLT are pretty much like shorting the market-makes my portfolio 51% long, 1% in cash and the rest 'short'.
I'll hold this for the time being, watching the developments here onwards.
Good luck,
Ivan Labrie.
INTC/AMD and/or INTC/NVDAI think a rotation is in order here. INTC hasn't underperformed this two, and specially AMD like this in a long time. All timeframes look like this might be a bottom in the ratio, so, I'd reccomend swapping your $AMD for $INTC if you have any, and/or take the pair trade. As you know, I'm 10% long $INTC, and also shorting $NVDA, but I have no $AMD position. The $NVDA one will suffice, but I wanted to point this out to investors who might be holding $AMD, sell it while it's hot.
Good luck,
Ivan Labrie.
INTC: Great correction to buy more or enter for the first timeINTC gave us a nice correction after the earnings report, sending it close to support at 34.90 and also landing on the lower deviation of a linear regression channel that I started from 2016's low, and anchored the other end to the highest high on October 10th. The new Key Earnings Level should act as a magnet propelling prices back up to 36.50 quickly. Once we break above it, and start moving up again, price will resume the long term uptrend.
Check related ideas for more information regarding the trend duration, targets and more.
Good luck!
Ivan Labrie.
NDX: Nasdaq 100, upside is more likelyWe can go long on a break of the all time high here, risking a drop to 4853.8, and targetting 5050.2 by or before November 25th.
Upside is more likely, as the title says, but, in case of a breakdown, pay attention to VIX and the key levels below for a long from support.
I'll update the publication after NFP is out.
Good luck,
Ivan Labrie.
I Plan To Short Sell 5,000 Shares Of Intel Corporation At This PI am extremely bearish on the semiconductor sector. In particular, Intel Corporation (NASDAQ:INTC) for the reasons listed below. I am looking to short 5,000 shares of the stock at a price of $37.20 or higher. I am looking for a quick drop of $2+ for a $10,000 profit in a week or two. Any sector that rises over 50% in a year without a pull back, is a likely candidate. This is what has happened to the semiconductor index $SMH. Intel Corp in particular has hit a double top from 2014 which is why I am focusing on this as a big short. When an index is beyond extended and one of its biggest components has a double top, the short is a high reward and low risk trade.