TSM Taiwan Semiconductor Options Ahead of EarningsAnalyzing the options chain of TSM Taiwan Semiconductor Manufacturing Company Limited prior to the earnings report this week,
I would consider purchasing the 95usd strike price Puts with
an expiration date of 2024-1-19,
for a premium of approximately $4.70.
If these options prove to be profitable prior to the earnings release, I would sell at least half of them.
Looking forward to read your opinion about it.
TSM
TSM - Rising Trend Channel [MID -TERM]🔹Breakout the ceiling of falling trend channel in the medium long term.
🔹Breakout resistance at 103 in inverse head and shoulders formation.
🔹Supports at 92 in negative reaction.
🔹Technically POSITIVE for the medium long term.
Chart Pattern;
🔹DT - Double Top | BEARISH | 🔴
🔹DB - Double Bottom | BULLISH | 🟢
🔹HNS - Head & Shoulder | BEARISH | 🔴
🔹REC - Rectangle | 🔵
🔹iHNS - inverse head & Shoulder | BULLISH | 🟢
Verify it first and believe later.
WavePoint ❤️
Short Semiconductors by Trading SOXS LongThis chart shows the long-term ratio between SOXL/SOXS. The intent is to detect reversals
between semi-conductors long and short. At the pivot high, the price of SOXL compared with
SOXS is at its highest. With a retreat from the pivot high, the price of SOXL is retreating while
SOXS is rising. Historically in 2022 as shown on the chart, pivots were with a ratio of 1,25 to
2,35 while the low pivots were with a ratio of 0.2 to 0.6.
At present SOXL has run up and over-extended as part of the AI breakout phenomenon. The
ratio of 1.8 is in the reversal zone where SOXL price is dropping while SOXS price begins
a significant rise. At present, the mass index is above 27 and awaiting a drop below 26.5.
The second indicator rate of change (ROC) detects spikes in the SOXL /SOXS ratio presumptive
for a pivot. The last time SOXS ran up over a long term ( with SOXL turning down)
was August to October when price increased from $33 to $88 representing a 266% rise.
I see this as a prior supertrend that could now be repeated again.
In conclusion, this idea leads me to take a swing long position is SOXS which I expect to
trend up over a period of a couple of months or more.
PATH - Rising Volume Lifts PricesOn the 4H chart PATH was on a trend down in April. The strength momentum ( green band) was
in a narrow range. In May as can be seen on the indicators, both volume and more especially
volatility have increased significantly. The chart pattern is now that of an upward facing
megaphone reflecting the volatility. The strength momentum band is much wider. Price
is above the POC line of the volume profile reflecting a bullish dominance. Fundamentally,
PATH is a player is the exploding AI subsector. Cathie Wood is quietly accumulating shares for
her ETFs as are many other large portfolio investors. In summary, PATH appears to be
an excellent long setup. Sitting in the shadows of NVDA, MU, TSM and others whose focus is
hardware, PATH provides software and services it. Its path to hypergrowth and so price
appreciation appears to be abundantly clear.
NVDA can it fall from the ceiling after EarningseOn the 2hr chart, NVDA popped from earnings over 20% putting with a PE Ratio sky high
on the promise of semiconductor heaven and AI ecstasy. Can it stay there ? Will it lead
other technology companies ( semiconductors / cloud services / AI et cetera) higher
as well ? Is it now overbought and looking at a glass ceiling? The indictors suggest a near-term
top, I think. ( Money Flow Index. Stochastic RSI ). Accordingly, I will buy put options
striking $ 400 for expiration 7/21 and be quick to take profits expecting NVDA to
equilibrate in less than a week. In th meanwhile, I will hdege by keeping my AMD
and MU call options open figuring that they will jump up as copy cats of this move.
I will cut them loose as soon as price action and a loss of volume suggest retracement as well.
I see buyers who got in late with high FOMO to be the lad sellers fueling the put options
into easy profit.
ASML makes the technology that makes semiconductorsASML is shown here on the one-hour chart as having a great quarter with consecutive favorable
earnings It has moved above the blue volume trading range on the profile. The accumulation
distribution indicator shows persistent and high accumulation. The volume heat map shows
recent heat volume spikes. Since ASML has products essential to chip- manufacturing and is the
leader in its field it is very well positioned for the AI boom that is underway according to all
the chatter. ASML is one of the IBD Top 50 tech stocks. If the chart is zoomed out, there is a
rising wedge which might be a bit of bearish bias. Overall, I see this as a long setup worth
buying.
Semiconductors NVIDIA and TSMC Vs BTC Ratio Semiconductors Vs BTC Ratio
- Since Sept 2017 we have been in a range
- The 3 channels are periods Semiconductors(SCRs)
performed better than BTC.
- The red resistance has been a sell indicator for SCRs.
- Exiting the 3 channels also meant sell SCRs.
Within months we are reaching a potential exit point for SCRs with BTC potentially offering better returns once we reach resistance or leave the current channel.
Factoring in yesterdays tweet regarding TSM, the next 3 - 6 months will be pertinent for SCRs and will likely provide a final upward thrust and an exit opportunity. It is possible that we break the resistance on the chart however this has not happened since Sept 2017 and may not happen. If it does we can reenter on a retest of the resistance turned support. I would still sell having enter the resistance.
This chart gives us another metric to watch for the SCR and BTC trade simultaneously. With AI making news lately the AI driven sentiment could offer the final thrust and exit position opportunity we are looking for for NVDA & TSM. Given NVDA has has such an epic move and factoring in that TSM appears to be signaling that its now its turn to rise (yesterdays tweet), my positioning would be into TSM. Furthermore, anyone wanting to diversify an AI holding, may sell NVDA into TSM. We shall see. A fascinating sequence of events that we can observe and trade off over the next 3 - 6 months.
PUKA
Is it Taiwan Semiconductor Manufacturing Co's turn now? NVIDIA vs TSM
The Chart for NYSE:TSM is lining up almost identically to NVIDIA prior to its major move higher.
- MACD Crossing now
- OBV Breaking upwards
- RSI 56 level about to be breached
Like NASDAQ:NVDA , TSM could rise by 39% to its ATH & appears to be following the NASDAQ:NVDA set up.
NVIDIA is the 6th largest company in the world by market cap at present and Taiwan Semiconductor Manufacturing Co. is the 10th largest.
It will be interesting to see if the TSM chart will follow the pattern of NVIDIA's. This could be an opportunity for a trade. Please not that the below chart is a monthly chart and thus the trade would require waiting 3 - 6 months to play out. An ideal entry would have been $82 and at present this would place a stop at $90. With ATH at $145 this gives you a Risk Reward Ratio of 3:1 from the current value of $103. Not the greatest or worst RR but the set up just looks so similar its hard not to have a stab
TSM - Breakout Falling Trend Channel🔹TSM has broken the ceiling of the falling trend in the medium long term, which indicates a slower initial falling rate.
🔹TSM has broken an inverse head and shoulders formation.
🔹RSI above 70 shows that the stock has strong positive momentum in the short term.
🔹Overall assessed as technically positive for the medium long term.
Chart Pattern;
🔹DT - Double Top | BEARISH | 🔴
🔹DB - Double Bottom | BULLISH | 🟢
🔹HNS - Head & Shoulder | BEARISH | 🔴
🔹REC - Rectangle | 🔵
🔹iHNS - inverse head & Shoulder | BULLISH | 🟢
Verify it first and believe later.
WavePoint ❤️
TSM on the path of Bullish Reversal* TSM has bounced back from the last bottom in Oct 22
* It has not made a series of HH and HLs
* Accorrding to the FIB Golden zone the confirmation of bullish reversal is at 102 to 104 Area
Plan A :
Entry Suggestion once the bullish reversal is confirmed
Entry @ 104
SL @ @ 92
TP 1 @ 111
TP2 @ 125
Plan B :
Entry can be made now since the current Trend line has been tested 2 times already successfully and seems it will bounce forward from here
Entry @ CMP (~84)
SL @ 78
TP 1 @ 104
Potential Bull flag and break impending on INTCIntel is a strong blue chip tech stock that could play on my TSM bearishness. If TSM does get demolished Intel will rise. Intel has strong revenue, is in many mutual funds, and is forming a potential bull flag. If I enter this position, it would be with May 19th calls 38 -40$ strike price.
Bullish trend line broken on TSM following Buffet newsThis is a potential put setup with a strike somewhere between 55-70$ that I am currently looking into. If the stock price drops below 85$ I will likely enter some puts on TSM. Between Senator Tuberville loading up with his military affiliations and Warren Buffet selling 86% of his TSM shares recently, I think a big move is coming.
ASML: Dominating the industry 💾ASML Holding N.V. is a holding company based in the Netherlands. The Company operates through its subsidiaries in the Netherlands, the United States, Italy, France, Germany, the United Kingdom, Ireland, Belgium, South Korea, Taiwan, Singapore, China, Hong Kong, Japan, Malaysia and Israel. The Company operates through one business segment which is engage in development, production, marketing, sales, upgrading and servicing of advanced semiconductor equipment systems, consisting of lithography, metrology and inspection systems. The Company offers TWINSCAN systems, equipped with lithography system with a mercury lamp as light source (i-line), Krypton Fluoride (KrF) and Argon Fluoride (ArF) light sources for processing wafers for manufacturing environments for which imaging at a small resolution is required. TWINSCAN systems also include immersion lithography systems (TWINSCAN immersion systems).
ASML's lithography systems use a process called photolithography to create intricate patterns on silicon wafers, which are then used to create integrated circuits, memory chips, and other semiconductor components. These patterns are created using a process of etching, deposition, and other techniques that require precise alignment and control.
ASML's customers are primarily semiconductor manufacturers such as Intel, Samsung, TSMC, and GlobalFoundries. These companies use ASML's lithography systems to create the most advanced microchips on the market. ASML's customers are some of the largest and most influential players in the semiconductor industry, and they rely on ASML to provide them with cutting-edge technology that enables them to stay ahead of the competition.
ASML's business model is based on a high degree of innovation and research and development. They invest heavily in R&D to continually improve their technology and maintain their market leadership. Additionally, they operate on a capital-intensive model, where the cost of producing their lithography systems is high but the revenue potential is also significant.
Overall, ASML's business model is centered around developing and selling advanced lithography systems to the world's leading semiconductor manufacturers, which requires a high degree of technological innovation, R&D investment, and capital-intensive production processes.
There are other companies that offer lithography systems for the semiconductor industry, such as Canon, Carl Zeiss, and Ultratech, but they do not directly compete with ASML in the advanced lithography segment of the market. These companies generally offer less advanced lithography systems that are used for less complex microchip manufacturing applications.
ASML's main customers are some of the largest semiconductor manufacturers in the world. These companies use ASML's lithography systems to manufacture advanced semiconductor chips for a wide range of applications, including smartphones, computers, servers, and other electronic devices.
Some of ASML's key customers include:
- TSMC (Taiwan Semiconductor Manufacturing Company)
- Samsung Electronics
- Intel Corporation
- SK Hynix
- Micron Technology
- GlobalFoundries
- UMC (United Microelectronics Corporation)
- STMicroelectronics
- Toshiba Memory Corporation
- Nanya Technology
With the underlying business performing so well over the years, its no surprise to see the stock has followed suit. Since 1996, ASML has returned +23.38% CAGR compared to +9.02% for SPY
At this rate of return HKEX:10 ,000 invested in ASML back in 1996 would have grown to over HKEX:3 million!
The strong market position and outlook for the business make me believe that the company will not be slowing down any time soon, and even at a valuation of 36x earnings I think this is a business trading at a fair value.
I have added this to my portfolio which you can check out here ⬇️
www.etoro.com
NVDIA - Expect Sideways Until Bear Puts Expire WorthlessEver since NVDIA went up after its February earnings call, it seems that social media traders have been afflicted with a fetish for trying to short it. There's all sorts of fundamental reasons, they say, such as NVIDIA is trading at blah blah times P/E, AI doesn't actually need chips beyond the initial machine learning phase, and of course the top reason that everything should be bearish: the Federal Reserve isn't pivoting!
None of that matters. One of the biggest pieces of wisdom I can share with you is that fundamentals do not matter in the way that you're led to believe that they matter. If the markets really worked that way, then there would neither be bubbles nor would there be undervalued stocks. If everything algorithmically traded in line with what "it was truly worth" you would have no opportunity at all to make (lose) any money, would feel bored with the computer, and would go outside.
The fundamentals to the market at large right now, including with the recent collapse of regional banks and Silicon Valley Bank, is that everything in this world is revolving around "relationships" that companies, people, organizations, and communities have established with Xi Jinping and his Chinese Communist Party. This especially includes what happened during the Coronavirus Disease 2019 pandemic and the world's response to the disease.
Too many people have, for the sake of the economic and recreational benefits that the Chinese Government has offered, imported the CCP's cultural revolution stuff back home. And yet, the CCP under the Jiang Zemin faction is guilty of almost 24 years of persecution against the 100 million practitioners of Falun Gong meditation, which involves the unprecedented crime of live organ harvesting as a form of torture (Kilgour-Matas Report).
And the result is a lot of business and social practices have developed under the Party's method that amount to cancers festering in the world's body. If you want to get rid of a cancer, you have to not only cut it out, but get rid of the root cause and the behaviors and habits that give the disease the environment it needs to lump around.
The thing about NVIDIA is that it has a story. Stories matter more than fundamentals in the short term. In the long term, fundamentals matter more than stories. This is because a small group of whales needs a pretext in order to bait in a large number of fish and a moderate amount of sharks to feed on, and this operation is a short to midterm play that revolves around the longer term fundamentals, which cannot be avoided.
NVIDIA's story is that there's a cool Chinese guy with grey hair running the company wearing a leather jacket. He says that he can sell a lot of chips right now and quickly exceed the very worthless crypto mining boom because GPT4 and STABLE DIFFUSION and the AI REVOLUTION need GRAPHICS CARDS more than rich kids need $1,800 graphic cards to be addicted to video games instead of having jobs and girlfriends.
Well, I'm a price action trader. I think the charts show the truth of the markets and their combined understanding and the candles reflect the operation in play. Zoom out, is what they always say:
NVIDIA on the monthly, when it dumped in October, took out a long term low from 2021.
Taking out a low all on its own doesn't mean much, but my friends, when a highcap takes out a big low AND THEN ALSO bounces 74% over the next three months, and instead of heading towards making new lows, goes ahead and makes a new high the next month, why are you shorting something that's going up?
Look at this pattern on the weekly and ask yourself what you really find appealing about buying puts on this besides hearing all the rabble in signal groups and on social media yell about HOW OVERPRICED this stock is and how IT SHOULD GO TO ZERO. IT'S GOING TO ZERO.
And even more so now with NVDIA closing at ~$270, this is the worst time to trade it. You've already missed the boat to go long, and going short has destroyed a lot of accounts.
You're at the apex of an inflection point, and the scenarios on both sides are very simple:
1. If it's bearish, then the MM is short from the early '22 pivot parked under $300, and bears are about to get what they want.
2. But that pivot is right under the $300 psychological level where big short positions now have their stops
3. If NVDIA is truly bullish, it will take out that pivot, sweep $300 and then is likely to retrace
4. But for bears, it doesn't make sense to give them a way out and retrace like that.
5. Thus, the most annoying thing the MM can do is to park price in this $255-275 range for several weeks and kill everyone's put and call premiums while selling the contracts
6. This means no retrace. Instead, when everyone's lost all their money going short, and it doesn't dump and NVDIA does go over $300 in May or June, price doesn't look back and sets a new all time high
7. Bears bamboozled and in disbelief about how a tech stock can set a new ATH during FEDERAL RESERVE RATE HIKES
If you want to make money in trading, you need to put risk management at the top of your priority list.
What's really implied by this is that you stop gambling. The way you stop gambling is by changing your heart and your intentions in trading. You have to stop wanting to get rich. If you try to change your life with gambling then you will, as a result, ruin your life. Literally everyone knows this and yet people still try to make their lives "happy" through gambling.
What you're trying to so is solidly and systematically increase your account on a compounding basis. To do this, you need winning trades and not losing trades. To do this, this means you need less trades, because let's be honest, most of your trades are losers.
In order to achieve all of the above, you need to quit listening to influencers and Discord and Telegram signal groups, delete the Marxist social influencing website Reddit, and start thinking for yourself.
You have to understand that a lot of these people do not trade themselves. They make their money grifting you for subscriptions and from behind the scenes for pushing certain things on their followers. You think from looking at how they talk and how they act and what they say that they're making a lot of money and are very successful, but almost all of them are either total frauds or losing traders.
Stop looking up to "heroes." There are no heroes. There's just you and your life, and you're in a very harsh and adversarial environment where the moral standard is very low and the people around you have very, very poor values. You need to make sure that your moral standard is high and that you have values and ideals that you can stand in front of your grandchildren with and hold your head high.
Also, genuine winning traders are both few and far between, and generally do not carry a high profile. People who have survived in the markets for a while also understand both how easy it is and how painful it is to lose money. They understand how hard money is to get it back once it's been lost. And thus, they aren't out there cowboying around.
You shouldn't listen to what I tell you either, because you need to think for yourself.
If you don't get sober and rational now, then when this world really changes as the Chinese Communist Party falls, a day which is extremely, extremely close, you won't have a chance to make it through the tribulation, because the requirement to pass through is that you have clean hands, a clean heart, and have chosen a bright future for yourself.
Intel Corporation - Buy the Raid, Ride the WaveSemiconductors were supposed to be the "21st century oil," but they aren't. Whoever believed that was really not rational. Because oil is for heating stuff, making plastic, and fueling vehicles, while computers are just computers are just computers are just computers.
Intel has not been bullish, only trading within a $6 range since October. A lot of other tech/Nasdaq stuff has been a lot more interesting to trade, but I personally like these companies that are in the low double digits and usually don't do insane things in one day, because the premium and spread for the options market is usually much more sane, and risk management is really the most important thing.
Plus, once these kinds of equities go, they tend to surprise well and are a lot better than gambling on if you can catch the latest 10% day on Tesla (you won't. Mastodon's socialists told you ELON MUSK BAD).
Anyways, I am expecting that markets at large will bear trap in and around the beginning of February and FOMC. The next FOMC is 6 weeks away in the third week of March, which gives a lot of time to head fake and take traders in the direction they like seeing the least right now (up).
Thus, based on Intel's price action post-earnings after missing EPS estimates by 50% and yet only dumping $1.50, that the market makers' intention is to gun the October low.
I believe you can buy $23.50-$25 in anticipation of a marketwide pump that will ultimately prove to be an exit pump designed to unload bags, fill banks' "big short" strategy, and totally destroy the existing short sellers in the market, heading into roughly May and July of this year.
Intel's long term price action is prime for this, as we have a large volume gap spanning 7 years in the $42 to $37 range, most evident on the monthly.
You may not see another run below the $24.87 low, since it was taken months ago.
But since Intel has yet to bounce, but has also proven to not actually be very bearish, a raid below the lows seems more likely than not.
The problem from a risk perspective is that a raid may not really be a raid. Intel can just be on its way to $0, but at the same time, the company really is the biggest processor manufacture for all the computers normal people use, and is "only" market capped at present at $116 billion.
Rival Taiwan Semiconductor TSM has a similar breadth pattern, but never took a previous low, and has bounced vigorously into a volume gap of its own from 2021.
Right now, the world is not okay. The pandemic situation in China with Wuhan Pneumonia is countless times more dire than mainstream media and social media are leading you to believe. It's really serious, as many individuals, corporations, and governments are tightly wed to China.
But unfortunately, many of those weddings weren't with "China" but the heinous and unforgivable "Chinese Communist Party."
The situation in this world can change overnight and all long trades have significant risk of total liquidation, no matter the appearance.
Make sure you take good care of yourselves and your families. Remember, money is a thing that you can't take with you.
TSM Potential for Bullish Continuation | 23rd February 2023Looking at the H4 chart, my overall bias for TSM is bullish due to the current price being above the Ichimoku cloud , indicating a bullish market.
Looking for a buy entry at 82.87, where the overlap support and 61.8% Fibonacci line is. Stop loss will be at 72.84, where the previous swing low is.
Take profit will be at 107.90, where the overlap resistance is.
Any opinions, news, research, analyses, prices, other information, or links to third-party sites contained on this website are provided on an "as-is" basis, as general market commentary, and do not constitute investment advice. The market commentary has not been prepared in accordance with legal requirements designed to promote the independence of investment research, and it is therefore not subject to any prohibition on dealing ahead of dissemination. Although this commentary is not produced by an independent source, FXCM takes all sufficient steps to eliminate or prevent any conflicts of interest arising out of the production and dissemination of this communication. The employees of FXCM commit to acting in the clients' best interests and represent their views without misleading, deceiving, or otherwise impairing the clients' ability to make informed investment decisions. For more information about the FXCM's internal organizational and administrative arrangements for the prevention of conflicts, please refer to the Firms' Managing Conflicts Policy. Please ensure that you read and understand our Full Disclaimer and Liability provision concerning the foregoing Information, which can be accessed on the website.
TSM Potential for Bullish Continuation | 23rd February 2023Looking at the H4 chart, my overall bias for TSM is bullish due to the current price being above the Ichimoku cloud , indicating a bullish market.
Looking for a buy entry at 82.87, where the overlap support and 61.8% Fibonacci line is. Stop loss will be at 72.84, where the previous swing low is.
Take profit will be at 107.90, where the overlap resistance is.
Any opinions, news, research, analyses, prices, other information, or links to third-party sites contained on this website are provided on an "as-is" basis, as general market commentary, and do not constitute investment advice. The market commentary has not been prepared in accordance with legal requirements designed to promote the independence of investment research, and it is therefore not subject to any prohibition on dealing ahead of dissemination. Although this commentary is not produced by an independent source, FXCM takes all sufficient steps to eliminate or prevent any conflicts of interest arising out of the production and dissemination of this communication. The employees of FXCM commit to acting in the clients' best interests and represent their views without misleading, deceiving, or otherwise impairing the clients' ability to make informed investment decisions. For more information about the FXCM's internal organizational and administrative arrangements for the prevention of conflicts, please refer to the Firms' Managing Conflicts Policy. Please ensure that you read and understand our Full Disclaimer and Liability provision concerning the foregoing Information, which can be accessed on the website.
TSM Taiwan Semiconductor ADR Sponsored$TSM #TSM TSM
Team solo mid (haha jk) is in a rough spot here. After an impeccable print of $98.87 it shot right past the 200 ema on the hourly chart. TEAM: If you were in at lower levels and raked profit before the slam, CONGRATULATIONS YOU DESERVE TO WIN!
It is not an easy PLAY to execute when opening up certain windows of print gain green.
The stock market is a powerFULL and wonderful drill. The longer you can drill and dig deep, the closer you are to the brightest gains that the stock market has to offer.
Be a leader in the markets, it's the only way.
Everyday watching film.
Enhancing craft is critical to a future in the stock market no matter which instrument you choose. And remember, all tools require understanding before they can be dominated on the live trading field. Stay alert even when you think you are too good at it, trust
She may climb briefly to approximately $93.97 then drip further down.
Overall, feels like a decent short setting up for a bit here for the short term. We'll see. Please remember, entry is critical to print win rate.
Everyone is a trading different size port folder at any given second in the stock markets existence.
The markets have their own DNA. Tap into and embrace your inner algorithm to become a leading gainer in any given market conditions.
RULE: AS SOON AS YOU LET THE MONEY GO IT BEGINS EARNING FOR YOU RIGHT AWAY
Stay productive and stay safe!
=stikstockitslive