Here is a portion of my speculative tech short basket (and entry on short in parentheses):
* MU (&MU) ($991.10)
* SNDK ($SNDK) ($1,736.80)
* INTC ($INTC) ($113.03)
* AMD ($AMD) ($499.90)
Positions: Short MU VS SNDK VS INTC VS AMD VS
Dr Frankenstein: Now that brain that you gave me, was it Hans Del Brooks?
Igor: No.
Dr. Frankenstein: Would you mind telling me whose brain I did put in?
Igor: Abby someone.
Dr. Franksenstein: Abby, who?
Igor: Abby Normal – I am almost sure that was the name.
Dr. Frankenstein: Are you saying I put an abnormal brain into a 7 1/2 foot long, 54 inch wide gorilla?
– Young Frankenstein Abby normal scene
Consider the following price changes in today’s session:
* $SNDK -$201
* $MU -$101
* $AMD -$51
* $MRVL -$38
To me, this should make investors consider whether the market has been nothing more than a casino — in which the many momentum-based investors know everything about price but nothing about value.
And that, as I have observed, the concepts of risk vs. reward and “margin of safety” have been generally ignored.
Position: None
In a market addicted to upside surprises, ‘priced to perfection’ gets sold. Is this now a buying opportunity?
I wrote a piece on one of my favorite holdings, Advanced Micro Devices ($AMD) here at TheStreet Pro earlier this week. I still believe what I wrote. My target price is still $588. I have been looking at the chart, though and think perhaps a bit of warning (not a call to panic) may be in order. This is the chart that I gave you…
I wrote the following: “Readers will see that AMD broke out sharply in April from the basing pattern (rectangle) of consolidation that ran from late October into late April. The shares obliterated my temporary target price of $456 as May wore on. We sold a small amount. What now? The shares look to have created a Rising Wedge pattern of bearish reversal as Relative Strength had reached technically overbought levels. The daily MACD is also ripe for some bloodletting.”
I then added, “How severe will it be? I’ll tell you what I’m doing. I am likely to add should the stock approach the mid-May high of $470, but not before.” So, I’ve had a clue that a sell-off could be coming. Now, we’ll erase the Rising Wedge pattern, which can be bearish to begin with, and see what we can see…
Looks a lot like a head & shoulders pattern of bearish reversal, doesn’t it. Should that pattern come to fruition, it should be noted that H&S patterns, in my non-scientific opinion, are more reliable than Rising Wedges that in theory can go on almost forever. Just some brain food for the crew here at the Diary.
Positions: Long AMD equity.
Iran ceasefire looks near collapse; SpaceX valuation at $1.75 trillion; Beige Book sees some in middle-income bracket ‘struggling more.’
We missed making some money in Marvell over 2026, so here’s how I’d handle the name now, and in the longer term.
Advanced Micro Devices appears ripe for some bloodletting after a major Nvidia and Microsoft update.
Talks drag on, May Manufacturing PMI data, more memory chip pain, and other headlines are moving stocks this morning.
U.S. and Iran trade fire over the weekend, Nvidia unveils a new super chip, and Jamie Dimon says exuberance ain’t so bad …
I covered my speculative stock package of shorts for a small profit:
* ($AMD) $516.69
* ($MU) $955.57
* ($SNDK) $1,666.17
Positions: None.
