[Charts] Tweets, Chips, and Blatant Robbery

Lou Basenese

Friday, October 29, 2021

It’s Friday in the Trend Trader Daily Nation.

And for the newbies in our midst, here’s what that means:

Every Friday, I curate a handful of graphics to convey some important investment insights.

All it takes is a quick glance — and you’ll be up to speed and poised to profit.

In this week’s edition, we’re shining the light on:

  • The worst tech stock to own headed into earnings.
  • Lengthening delays in the chip sector.
  • And the latest hype-driven stock that’s teaching new investors (the hard way) that fundamentals matter.

So let’s get to it...

Tweet-astrophe

Let me say for the record that buying any stock directly ahead of an earnings report is seriously risky.

But buying Twitter, Inc. (TWTR) directly ahead of earnings is downright stupid. Unless you enjoy watching money evaporate.

As you can see below, Twitter’s stock reacts in an insanely volatile way to earnings reports. And the majority of the time (65%), it’s to the down side.

My recommendation? Do your bottom line a favor and stick to tweeting, not trading.

(click image to enlarge)

Back the Chips Up

I’m forever bullish on the semiconductor industry because of the exploding use of chips in, well, just about everything.

But throw in a global pandemic, and the demand imbalance keeps getting more and more imbalanced.

As you can see below, the time between ordering chips and getting them delivered is now up to nearly six months.

(click image to enlarge)

But don’t fret. This is a genuine opportunity.

As the CEO of Atomera Inc. (ATOM) noted on a conference call yesterday, “We see the industry entering into a massive round of investment,” to add additional capacity to meet the demand.

That’s nothing but bullish news for the semiconductor equipment manufacturers that I’ve mentioned here before, like Lam Research Corporation (LRCX)...

And even more so for semiconductor technology providers like Atomera. (Hint, hint).

Robbery In Progress

I hate to say I told you so, twice.

But I told you to avoid Robinhood Markets, Inc. (HOOD) here. And I told you to avoid Robinhood here, too.

I hope you listened, as the company that’s determined to democratize investing brutalized its own investors by plunging after it missed earnings expectations.


(click image to enlarge)

The stock has already been cut in half from its post-IPO highs. But it could still keep falling. So don’t just sit around watching it plummet — profit from it. Here’s how:

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Ahead of the tape,
Lou Basenese
Lou Basenese

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