Here’s a look at the charts that Jim Cramer will be discussing on tonight’s Mad Money show – January 22, 2024
This is Dan with FITZ IN FIVE. Jim Cramer asked me, over the weekend, for some ideas for his show, that’s today, not the typical Tuesday thing. I mentioned that I thought the semiconductors were in a really good spot.
I want to look at SMCI ( NASDAQ: SMCI ) in a second, that’s what I had planned to do. However, let’s just go over what my reasoning is. Here’s the upshot here, I think that the semis are going higher, they are probably going much higher this year. However, now isn’t the best time to be buying them.
You can see, this is a sector ETF, so it is going to have a pattern, typically, that’s a little different than the individual stocks. Because this is the aggregate of all the stocks. Some are going to be doing good, and some of them aren’t so good. Generally, when we look at the SMH ( NASDAQ: SMH ) what we want to see is, is there a trend.
Here you can see, again, on the weekly chart, the 10-week, which is the 50-day, and the 40-week, which is the 200-day moving averages, are trending higher. The SMH ( NASDAQ: SMH ) is tracking along the upper Bollinger Band, it’s all good in the hood. This is perfect, this is just what we want to see. But we’re not generally going to trade the SMH ( NASDAQ: SMH ).
However, I would say to you longer-term investors, for 401ks, things like that. Sector trading is actually a good way to make sure that you’re in the right place, at the right time. And you are not really having to trade around all these positions. You’re essentially trading the money flow, the trend of money coming into or going out of, of course, but coming into a particular sector, so this looks really good.
Then we look at NVIDIA ( NASDAQ: NVDA ). NVIDIA ( NASDAQ: NVDA ), on the daily chart, looks really great. I’d been trading this for a while. I made a lot of money, I was really fortunate, over the last month or so, just in buying calls. I owned some stock, I actually unloaded a bit of it today when it didn’t push 600.00. But I got close to 600.00 on it, so I am happy about that.
I think the stock goes higher after this squeeze. However, it is struggling with 600.00, so that is something we need to watch. My bet is, that over the course of the year, I think that we should be able to get a 900.00 handle on that, that’s my bet. But we are going to get pullbacks, stops, and starts along the way.
So my suggestion on this is, even if you are a real short-term trader, wait for the stock to hit the 8-day moving average before buying. It doesn’t happen that often so you have to be patient. But what you don’t want to be doing is, just buying the high. Because it does oscillate a bit. So that would be my thing on NVIDIA ( NASDAQ: NVDA ).
Now, SMCI ( NASDAQ: SMCI ). I did some math here, this is a 5 1/2 month base, so I did some simple math here, taking the last high in August, and then going down to the low here in October. Taking the difference, I think it was about 130.00, something like that. And then I add that 130.00 to the high here because the stock has broken out.
That takes me to about 487.00, 485.00, really, something like that. That’s what is called a measured move. So we take the breakout from a prolonged cup like this and then we extend upward that amount, $130.00. And say. “This is probably where the stock should go before it hits some kind of a resistance point.”
It did that today, it almost got up to our complete move before turning around a bit. It is still up on the day, over 4 percent, so the stock is still working. A higher high, a higher low, we don’t know what the future holds over the next hour and forty-five minutes (I’m doing this at 11:13 Pacific time). So we’ve still got a ways to go on the stock.
But what is noteworthy to me is that the stock hit the high right at the open and then traded off. You can see how it’s still catching bids and running up. It wouldn’t surprise me if the stock closed above the opening print today. Because it is still absolutely under accumulation. So you have got to look at this and say, “This is in a really tight squeeze and there is really not much doubt in my mind that the stock is going to continue higher.
I would absolutely want to be buying this stock. I would just be cautious about buying it right now. Because you really do make money on the entry of a position. Are you getting off on the right foot? Or did you get in too high and now you’ve got to sit through a pullback for a while, which is a drag?
So I say, “Buy the stock, but just be a little patient before you do so.” You might miss out on a little more upside, but you are a little bit late in getting into this as an initial position.
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