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Dr. Kris has two degrees from MIT because one just wasn't enough. Her life goal was to figure out the universe and having done that (at least to her satisfaction), she decided to tackle something even more difficult—the stock market. Applying the scientific method along with an insatiably... More
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  • Market Notes: Semis On The Move -- May 2 4 comments
    May 2, 2013 5:18 PM | about stocks: LNKD, YELP, SMI

    4:00pm ET Back from the NAAIM (National Association of Active Investment Managers) conference in Denver and have much to do so I'll keep it short today. Well...it appears as if yesterday's threat of a "Sell in May" scenario is being put on hold as some of the major averages were able to not only erase yesterday's damage but add to it. Mr. Nazzie razzle-dazzled by adding to its previous high (the highest since 2000) mainly due to action in internet and semiconductor stocks.

    Regarding internet issues, both LinkedIn (NYSE:LNKD) and Yelp (NYSE:YELP) moved to new highs. Yelp leaped previous resistance, adding more than 27% to yesterday's close on ten times normal volume. Reporting today, the company beat revenue projections which prompted an upgrade.

    In semiconductors, solar stocks were among the more active issues. Surfing through the industry group, I found the chart of Semiconductor Manufacturing (SMI, $3.91) to be especially compelling. The stock has been rising steadily after breaking out of a two month consolidation pattern last summer and today it broke $3.60 resistance, gaining over 10% on slightly heavier than normal volume. It appears that momentum is on its side and technically it gets a green light. Fundamentally, though, there's not enough information on it (without going into the SEC filings) to tell what's going on as it is a Chinese company trading here as an ADR (American Depository Receipt). From what little info I could find, it appears as if the company has been having cash flow problems but hey, the stock wouldn't be rising if investors weren't finding something to like!

    Trade Note: The unemployment report is due out before tomorrow's opening bell. This event has the potential to add a lot of volatility to tomorrow's trading action. If the number is bad, that means the Fed will continue its QE policies which is good for the market. However, a bad number lends credence to the manufacturing numbers which are showing contraction. This could make investors nervous about the possibility of another recession which might lead to a sell-off. Perhaps the best outcome would be to maintain the status quo. We'll see.

    [Photo: Dr. Kris at her Portfolio Preserver booth at the 2013 NAAIM conference in Denver.]

    Themes: semiconductors, long ideas Stocks: LNKD, YELP, SMI
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Comments (4)
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  • realornot
    , contributor
    Comments (1281) | Send Message
     
    $LNKD that was a nasty drop..... 11% Totally not right.
    2 May 2013, 05:48 PM Reply Like
  • TruffelPig
    , contributor
    Comments (4085) | Send Message
     
    I like your MZRTF recommendation. Happily building position.
    2 May 2013, 06:56 PM Reply Like
  • Dr. Kris
    , contributor
    Comments (322) | Send Message
     
    Author’s reply » Truff: This was a highly speculative recommendation and I don't advise anyone with anything other than mad money to play it.

     

    Chartwise, I'd take profits right here. The stock looks like it's going down. A break below $4.25 is a sell signal.

     

    TX to y'all for responding.

     

    Dr. K
    3 May 2013, 02:28 AM Reply Like
  • TruffelPig
    , contributor
    Comments (4085) | Send Message
     
    I decided that this is my long-term speculative 20-bag. Not selling. The more I research it, the more I like. Asia buys their equipment!
    3 May 2013, 08:43 AM Reply Like
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