Heroic Lifesaver

They always say ‘The market does not go up in a straight line’. This market still looks like it wants to go higher and if it keeps having shallow pullbacks, then the trend is up.

$NVIDIA(NVDA.US)

Its Nvidia time. Last Monday, Nvidia was going into the session trying to hold on to the 225 levels. It touched 224 before selling off to reach a low of 216.20 on Tuesday. Recovery began proper on Wednesday with a gap up and she held on to close the week at 225.

Today, premarket looks green with markets looking to open up including Nvidia.

236 is an important level. And Nvidia’s results are next week. A good result might provide the catalyst to propel her to new highs but having pampered the market with excellent results, let’s see how well she does this time.

@Captain's Treasure

Friday saw capital flowing into specific stocks related to the AI infrastructure. Overall, the markets are looking rather resilient. Nvidia’s earnings will be key as well as their forward guidance.

$Micron Tech(MU.US)

Micron’s price action looks pretty similar to Sandisk. Not surprising as both are critical suppliers in the same supply chain serving the same bottle necks. Both provide memory components complementary to each other which are very high in demand yet short of supply.

No matter what the bears are saying (most of whom are following a certain famous ‘one hit wonder’ investor and his theses including the ‘5 year GPU lifespan’. Interestingly his name sounds like ‘bear’ also. 😂) and no disrespect meant. I mean the theses does have some grounds. However, this is what the best investors do. They pivot where necessary and are not married to the theses. No one is right all the time.

Where there were doubts whether the AI buildout will yield ROI, those doubts have been quelled with earnings showing that AI is making money. Now its about closing the gap between the buildout and profits. That’s what the markets need to see before the next big leg up.

The next phase is inference. And let’s focus there first before discussing future phases like agentic buildouts, autonomous AI which includes self driven cars and robots etc. When we talk about inference, that alone needs loads of memory. We haven’t even gone to the next phase.

And when you see the big boys lining up to fund the industry, that is very telling. AI is now too big to fail. And they always say ‘Do not fight the tape’. Be on the right side.

Now again, even price needs a breather at times. We just had one. Now it looks like high beta wants to get going again.

Back to memory. Like Sandisk, MU looks like going for its ATH. I know some will laugh at me. As they do when I was bearish at the top. (Look at my time stamped posts!) There will be a time when I will be wary. Now it’s time to make hay while the sun shines.

*Not financial advice. Just my honest opinion.

@Captain's Treasure

The overall market is taking the inflation numbers in its stride and liking it. Price action leans bullish and the number of bears still being around and vocal gives it an even more bullish nuance.

The Rise of Precious Metals?

About time! I just shared my views on GLD 2 days ago. But here goes again.

Precious metals in particular Gold and Silver are looking good after their lows a few weeks back.

Since then, prices of both gold and silver stabilised in a sideways price action which formed a rectangular channel. This could mean distribution or accumulation.

I am leaning accumulation based on technical patterns as well as price action with price breaking above the upper level of that rectangular channel as well as gold clearing the upper downtrend line. (Silver has yet to clear but Gold might be leading).

Fundamentally wise, Gold has always been an asset investors flock to when they do not trust the fiat system so much. With so much uncertainty especially in the USD, I believe Gold is at an attractive level for investors especially central banks to start accumulating again.

@Captain's Watch

$Sandisk(SNDK.US)

Sandisk looks pretty good around these price levels. Why do I say so?

Firstly, price has finally broken out of the downtrend line that was capping it and which was touched and rejected at three different price points along the way.

Hold these levels and clear the avwap at 1367 as well as the 1450 level and Sandisk will be looking pretty good for another sustained rally to, dare I say, new highs.

@Captain's Treasure

Well inflation turns out benign after all and puts less pressure on the Fed to hike. Honestly don’t care much about the yields and don’t think the US will sacrifice the stock market for that. If need to, they will do yield curve control. IMHO, they are going to devalue the dollar.

$ExxonMobil(XOM.US)

Oil has been a bit more tricky to chart as it has been more often than not tied to geopolitics.

As mentioned previously, I chose ExxonMobil primarily as an investment into a blue chip energy conglomerate that also benefits from elevated oil prices.

It’s meant to hedge against rising oil prices while at the same time leveraging on a well run company which pays a healthy dividend.

@Captain's Treasure

This market is too tricky to guess which way it wants to go. And many times I have mentioned that narratives are secondary to price action. Having said that, the market might be waiting for the CPI numbers looking at how lacklustre it has been lately.

$SPDR Gold Shares(GLD.US)

Gold has done quite well recently. She has broken out of her rectangular basing channel in what looks like a micro 5 waves. Volume looks good and expansive on the move. However caution ahead - The daily 200 MA beckons. The most bullish move will be a gap and go beyond the 200 MA. Alternatively price pulls back in three waves which will set up for a sustained rally.

CPI ahead might provide the catalyst for the next price action.

@Captain's Treasure

The agreement between Nvidia and the six prominent names in finance hints at a landscape shift. AI is being shaped to be the new real estate albeit a digital one.

$NVIDIA(NVDA.US)

Its Monday and it’s Nvidia time again. Last week when I discussed Nvidia, she was still hovering above the daily 200 MA precariously. What a difference a week makes in the technical picture.

Now a week later, Nvidia sits prettily at 224 and much closer to the ATH. Earnings are coming up and the whole tech world as well as the overall markets will be waiting eagerly to see if Nvidia can give a much needed confidence for another boost.

Stay tuned! 🤓

@Captain's Treasure

Its encouraging to see Berkshire deploy their cash and amass Google. In true Buffet style, they gravitate to an established name with a moat. The choice is clear. AI is here to stay.

$Sandisk(SNDK.US)

I am very bullish on Sandisk with my upper targets way above the ATH of 2354.

Yes I know some of you are laughing at my targets but I have my reasons for saying so. And they are based on both fundamentals as well as technical analysis.

When these two aligns, I am confident and unless the fundamentals and/or the technicals change, I will not sell unnecessarily. Maybe take profits but it will be buy on dips.

Sandisk has two bullish counts on my radar. And they are both pointing to lofty overhead targets. But first we need to get over 1370 at this sticky upper downtrend line which will see Sandisk’s engine revving up.

@Captain's Treasure

What is interesting about this market is that despite making new highs, many especially retail remain skeptical and doubtful. Technically, the charts look bullish if they continue holding the levels they broke above. And they are doing well. All these makes me lean bullish.

$GE Vernova(GEV.US)

This stalwart continues to have a strong position in my tech portfolio. Whilst everyone chases the high growths, this behemoth chugs along quietly and cushions the portfolio.

Very much an important cog in the energy hungry AI world, I believe GEV will continue doing its thing contributing less noisily like a star defender in an elite football team.

They are so important to the team but not in the limelight. You only notice them when the team is under attack or when they occasionally score.

Like Saliba for Arsenal. COYG. 🤓

@Captain's Treasure