From $NVDA to $AVGO, let’s ride the profit waves together – December 12, 2023
This is Dan Fitzpatrick with FITZ IN FIVE. What do you see about this chart ( NASDAQ: QQQ ) that looks the most interesting? To me it is, that it’s the weekly chart.
This is the weekly chart, this pattern goes back into late 2021. This is about the longest cup and handle I can remember seeing. Some would say it’s not really a cup and handle because it’s so long. Do you know what? I don’t care, I don’t quibble. If I see a pattern that’s working, that’s going to make me money, who am I to question it? Take the dough, don’t say no. That’s the way I am looking at this now.
On the QQQs ( NASDAQ: QQQ ) here, this just blasted off a month and a half ago, before Thanksgiving. And then when it came time for Thanksgiving it was like, hey man, thanks for what the QQQs ( NASDAQ: QQQ ) are giving. I don’t even know why I said that.
This is back at this high here, it is really breaking out. If you are looking at a daily chart, you can kind of say this is its own little cup and handle. I’m not going to say that, but you could if you want, nobody is going to stop you.
I just see this, a nice move, a little pause, a little downward drift, which I like. Generally speaking, light volume here, pretty light volume during this sideways drift. Then we got a couple of big volume spikes, they’re both red, that’s not fun, we don’t like this.
However, over the last 4 days, it’s all been up. And the thing that is most interesting about this is, that is most important is, they have all been good closes. The closing location value within the intraday range is really, really good. The worst one was this right here, where it closed, .21 percent off of its high.
So this was a really, really strong close. The same thing here, it’s like they just got better and better. The lows are higher, the highs are higher, and the closes are better. The only thing that is not to like is if you are short, you’re not really liking much of this, you’re hating life.
But I didn’t come here to talk about the QQQs ( NASDAQ: QQQ ). I talked about this ( NASDAQ: SMH ) the other day, I think my email was, The Semiconductor’s Are More Than Semi-Good, something like that. The bottom line here is, you see this is a really, really important move. This is even further along than the cup and handle on the QQQs ( NASDAQ: QQQ ).
I like the way this ( NASDAQ: SMH ) is trading, I love the Semi’s. It would be nice to see the volume going this way, as opposed to this way. But it is just something to take note of while you are buying semiconductor stocks.
We got into Broadcom ( NASDAQ: AVGO ) yesterday before I went on Fox Business to talk to Charles Payne. I was set to talk to him about semiconductors and then Gary Kaltbaum, a great analyst, was on just before me. I’m sitting there with a little ear-piece in my ear listening to him talking about all my stocks. Wondering, did this guy steal my notes?
But here’s the thing, the fact that he’s talking about it, the same thing that I was going to talk about, the same stocks, that told me that this is definitely the right place to be. Because it’s not like they (the Semi’s) have been on a rampage, going straight up to the moon and finally everybody and his brother is talking about it. That’s not it at all. This has been in a sideways consolidation for a while, you can see this.
When you’ve got this stock breaking out and there are a lot of people talking about it, a lot of TV folks, then you just know that that is the place to be and NVIDIA ( NASDAQ: NVDA ) is really not, not like Broadcom ( NASDAQ: AVGO ).
I think NVIDIA ( NASDAQ: NVDA ) ultimately goes higher, but right now it is totally lagging. It is right at the 50-day moving average, which is fine, you want to see that hold. And this would be an awesome stock to own if it wasn’t for this.
The same thing here with Advanced Micro Devices ( NASDAQ: AMD ), it’s breaking out. Lam Research ( NASDAQ: LRCX ) is trying to, but it is not quite there. What’s AMAT ( NASDAQ: AMAT ) here? It’s the same thing. Even Intel ( NASDAQ: INTC ) is still working okay.
So where do you put the dough? AVAGO ( NASDAQ: AVGO ), Broadcom, that would be where I would put it. We’ve got that on our Active List, it is up nicely, I think we’re in at 1,010.00, so this is working out nicely. Now that we’re in, this is the chart I’m looking at. I’m keeping track of the weekly chart, I don’t want to be focused on the daily chart, it’s just too much.
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