Semiconductor stocks are once again in focus - particularly those tied to artificial intelligence and data center expansion.
One name drawing significant attention is SanDisk, which has already delivered a massive run of more than 2,000% over the past year. However, even after that surge, analysts believe the stock may still have meaningful upside heading into its next earnings report on April 30.
All thanks to surging demand for NAND memory and improving pricing conditions.
Analysts are Bullish with Street-High Targets
Wall Street sentiment around SanDisk continues to strengthen, with multiple firms raising their price targets in recent weeks.
Bernstein, analyst Mark Newman recently issued a Street-high price target of $1,250, arguing that the company’s earnings power and the durability of the current cycle are being underestimated.
We emphasize that the basic Turtle system is pretty simple and easy to follow, but our entry rules do indicate two additional filters in an attempt to increase our odds of success.
Filter #1: The first filter deals with the general concept that markets move in alternating periods of trending and consolidation, first seeking a new and fair equilibrium price level and remaining there until something new happens to change things. Because of this tendency, we would expect to see a "good" trend followed by some period of sideways consolidation, as opposed to another good trend coming back to back.
Therefore, we use a principle called the "last theoretical trade" or the "last trade loser" rule, also known as the "P/L Filter." Basically, this says that if the previous trade in a given market was a winner, then you should not take the next breakout that occurs in the opposite direction. Remember, as trend followers, if our last trade was profitable, it was because the market was trending. Our reasoning here is that the next breakout in the other direction will likely fail, and the market will fall back into its old consolidation range rather than establish a newly emerging trend so quickly on the heels of the previous move.
A Straightforward Approach to Trading Weekly Options
As stated in the Wealth Building with Weekly Options book, the strategy depends on locating liquid, high dollar, fast moving stock candidates. In addition, it is important to be aware of the overall market environment.
The content of this newsletter endeavors to support you and those strategy goals. The newsletter comes out on Wednesday evenings since Thursday is the day of new weekly option listings.
This week: One of the strongest single-session gains by the stock market in months arrived Wednesday. Investors clearly showed relief that the U.S. would take at least two weeks to consider a peace plan with decades-long enemy Iran.
Encouraging action by leading growth stocks in dynamic industries, in particular artificial intelligence, fiber optics, aerospace, banking, select retail and semiconductors, pointed to positive signs that a new uptrend may now be taking place.
Find Consistent Income Opportunities in Any Market
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Learn from Blane’s rules based technical analysis approach to spot opportunities in any type of market; even the choppy and volatile markets of today!
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