$AMD TOP 20
Added 2024-07-18 11:49:59 +0000 UTCThe Semi sell off yesterday was aggressive for a number of reasons:
Rotation out of Tech/Ai stocks into Small Caps continued
$NVDA lead this sell off and caused a ripple effect within its sector
The US is considering more sanctions on Semi companies in the US towards China
Trump and Dimon announced that the Fed should not reduce rates before the election, which upset the market as it was positioning itself for a Rate Cut in Sept....which also accelerated the rotation.
$NVDA has recently completed a stock split, which sometimes indicates the Top of a Cycle
So for all of these reasons, it was not a great day for the market or the sector, $AMD pulled back below the $165 level and back into the wedge but we can see in the PM now that the price is just holding on the outside of the wedge again, this is not insignificant.
The overall impulse structure is not invalidated until the $141 level is broken, so we are nowhere near that right now.
The current impulse set up would need to be altered if our current Subwave 2 at $153 is broken through, that is not a concern for me, as long as $141 is held.
The 200 Day MA sits at $152 too, which has been a reliable support level since the start of 2023.
I added $AMD yesterday and happy that I have done so, I don't think the top is in just yet, usually when there is an aggressive pop or capitulation upwards, this would indicate a top in the market and the $IWM keeps moving higher too, so I do not believe we are there yet.....earnings season is starting to heat up too, the market won't care about anything else when these reports are released.
