The Matrix Is Heating Up (with $AMD)!

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Things are indeed heating up inside the Matrix these past couple days. All alerts were winners this Tuesday!

$PYX, saw a steady climb from $24 all the way up to $30.75, topping out at 32% intraday.

$FLKS, saw upwards of 52% intraday gains, from $.4510 to $.7089.

$AYTU, pulled a fast one off $2.50 support and rose to $3.23 before closing at $2.63.

 

You can also expect to find a few Option alerts here and there as well!

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Alerted $AMD puts on Sept. 23. Expiration: October 19 with a strike of $28.

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Ideally was looking to hold the option during the $30 support fall through, but had to close out to lock in some gains. Today is the day $AMD went full bear mode, and I was in with 25 contracts.

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So what made me so confident in my trades against $AMD?

  • What goes up (in the market), eventually has to come down. No stock can go up forever.
  • $AMD had an amazing run! In just 5 months, from April to September, $AMD rose from $10 to $34, and quite sharply at that.
  • I knew at above $30, $AMD was overvalued. Its traded price was not rationally reflected to its forward earnings.

Here’s some technical analysis:

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1) Bearish MACD crossover, this gave me some confidence in knowing the market is losing steam with $AMD, and things might slow down from here. This was when I sent out the alert to the Matrix!

2) Notice the MACD bar lines are consistently longer each day.

3) Still not convinced? Red candle broke through 13 day EMA line, and the rest is history.

$AMD best rally within the past decade, took a nose dive from $30 to $28.65 in a matter of minutes!

Will it climb back up to the comforts of $30s?

In my opinion, not anytime soon. $AMD is notorious for being one of the most shorted stock on the stock market and short traders have been waiting patiently for this downfall.

I anticipate a bounce around $25, but nothing is guaranteed. Do I see $AMD being worth a $30 stock? Sure, maybe in the future, but not now. Not in 2018 at least. Maybe we will see $AMD’s true strength when cryptocurrency have their next bull run, whenever that may be. I can see $AMD having a place in the market for cryptocurrency and blockchain technology. Lots of potential (gains) with this underdog chip maker…

-T

 

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3 thoughts on “The Matrix Is Heating Up (with $AMD)!

  1. I can testify that this indeed did happen in real time, right before my very eyes lol. Awesome trading with a great wrap up to boot! So glad you found your way here! @tonytrann96

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