Weekend Update Notes (May 21, 2016)

by Gary WU 052016

COTD: LB – rebound. Had to happen! Nothing goes down forever.

VIDEO ONE: Rate hike in June? That better happen. Eric Rosengran (boston) says markets aren’t pricing

in a June hike enough. William Dudley (New York) said the same thing.

SPX – choppy. Be cautious and DEFINE RISK! You don’t get to make a lot of money when there is not a

lot of money to be made.

DJI – everything consolidating. This is what tops (and high bases) look like. Sorry I can’t be more

definitive. I see the same thing you do.

DJT

MDY

RUT

COMPQX

XLK – best type of configuration now. Go with what has not been “not working.”

SMH – same

Breadth stuff

Smart/Dumb — .46 difference between smart/dumb at bottom. Now it’s .09

XLF – still consolidating

XRT – OS bounce. Traders have them now.

XOP – consolidating.

VIDEO TWO: SEMICONDUCTORS.

1. SMH

2. QCOM – 9% growth. Decline looks like it’s factored this in.

3. NXPI – good consolidation after breaking downtrend. 36% growth. Revenues growing.

4. AMAT – can’t buy this now. It’s a missed opportunity.

5. CY – sales growth has been really good until Q1. Maybe starting to anticipate better Q2. Trade

the chart.

6. CDNS – breaking out. Extended. Compare chart to QCOM. Growth is 25%

7. MRVL – still working on reversal. Fundamentals are bad. This is a chart trade…and not a

particularly good one.

8. NVDA – great trade last week. Note declining volume. Do NOT get sucked in. If you are in, then

either sell some, or tighten your trailing stop. Steady growth…but this is NOT where you buy.

This is where you SELL!!!!

9. OLED – GR 61% P/E 53

10. QRVO – GR 114%. P/E 11

VIDEO THREE

1. ORBK – GR 22%. P/E 11. Process control system or PCB and flat panels.

2. BLD – IPO working on $36. Alert $36

3. FINL – almost bullish engulfing pattern.

4. WFM – close to breaking downtrend and out of $29 base. Alert $32.

5. AXP – fundamentals aren’t great. 8% growth over 5 years…but negative over last year. 50-day

MA support

6. CYNO – aesthetic stuff – hair removal, skin, etc.

7. AVGO –higher lows and highs. Earnings 6/2

FANG

8. FB — Glenn Beck’s has looked into the Zuck’s eyes. All good now. 50-day MA holding.

9. AMZN – really extended.

10. NFLX – higher low

11. GOOGL – rangebound

12. BUFF – consolidating

13. TMUS – close to ATH. 7.6% yield.

14. WIN – 8% yield

15. SLB – request. Still holding on. Needs $72 support to hold.

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