🚀 Today's Big Ideas: Nasdaq, Microsoft, Nvidia
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TODAY'S BIG IDEAS
NASDAQ 100 E-MINI sets up for +7.6% rally in 3 months.
MICROSOFT CORP sets up for +12.2% rally in 3 months.
NVIDIA CORP poised to seasonally rally by +10.2% during the next 90 days.
For more investment insights, please visit us at www.LongShortBets.com
(1) Score 8.6 (out of 10): NASDAQ 100 E-MINI sets up for +7.6% rally in 3 months
What’s Going On Here?
Tech stocks have been on the backfoot this week as the Fed has become more hawkish, threatening to increase the cost of capital. Many tech firms depend on cheap financing to support their growth projections, hence higher costs are seen as a negative – if the Fed is right to be hawkish, at this point of the economic cycle.
Why Now?
NASDAQ 100 E-MINI has triggered a new high volatility signal (1 month). During similar occasions, NASDAQ 100 E-MINI had a median return of +7.6%, over the following 3 months – based on 10 historical occasions with 9 of those showing positive returns (90%). This buy signal for NASDAQ 100 E-MINI received a high score of 8.6 (out of 10). This insight was generated on 2021-December-17 with last price of 15,717.
What’s This Company About?
NASDAQ 100 E-MINI is the benchmark index for the key 100 market cap based tech companies. Based on the last 2 years’ risk/return profile, this asset is seen as Less Risky.
What’s My Risk / Reward and Time Horizon?
We found 3 months to be the optimal trade horizon, after testing a number of possible alternatives (accuracy of previous returns). Otherwise consider closing out this trade once the target level of 16911.56 (+7.6%) has been reached. Based on NASDAQ 100 E-MINI’s recent up and down swings, LongShortBets suggests considering to set a stop loss level for this insight at 14907.82 (last price at 15717.32), which is equivalent to a -5.2% decline.
(2) Score 8.3 (out of 10): MICROSOFT CORP sets up for +12.2% rally in 3 months
What’s Going On Here?
MICROSOFT targets cloud laggards to make a broader industry push and win more clients. Some industries, like manufacturing have been slow to utilize the cloud infrastructure. This strategy is similar to other major cloud computing providers – such as Oracle and Alphabet.
Why Now?
MICROSOFT CORP has triggered a new high volatility signal (1 month). During similar occasions, MICROSOFT CORP shares had a median return of +12.2%, over the following 3 months – based on 10 historical occasions with 7 of those showing positive returns (70%). This buy signal for MICROSOFT CORP received a high score of 8.3 (out of 10). This insight was generated on 2021-December-15 with last price of 334.65.
What’s This Company About?
MICROSOFT CORP is in the Applications Software business. Based on the last 2 years’ risk/return profile, this asset is seen as Less Risky. ‘Wall Street’ analysts think the stock price will be worth 8.6% more (average). Ticker symbol: MSFT US.
What’s My Risk / Reward and Time Horizon?
We found 3 months to be the optimal trade horizon, after testing a number of possible alternatives (accuracy of previous returns). Otherwise consider closing out this trade once the target level of 375.38 (+12.2%) has been reached. Based on MICROSOFT CORP’s recent up and down swings, LongShortBets suggests considering to set a stop loss level for this insight at 316.45 (last price at 334.65), which is equivalent to a -5.4% decline.
(3) Score 8.5 (out of 10): NVIDIA CORP poised to seasonally rally by +10.2% during the next 90 days
What’s Going On Here?
NVIDIA continues to be at the forefront of gaming. The company’s most recent graphics cards are seeing ‘off the charts’ demand. NVIDIA’s semiconductors are also helping with cloud services with November data for cloud demand are growing +29% YoY, by some estimates. In addition, from Dec 15 to Dec 22, the company will give-away a ‘Matrix themed’ gaming PC.
Why Now?
NVIDIA CORP indicates an interesting 90 days seasonal set up. During similar occasions, NVIDIA CORP shares had a median return of +10.2% – based on 10 historical occasions with 9 of those showing positive returns (90%). This buy signal for NVIDIA CORP received a high score of 8.5 (out of 10). This insight was generated with last price of 304.59.
What’s This Company About?
NVIDIA CORP is in the Electronic Compo-Semicon business. Based on the last 2 years’ risk/return profile, this asset is seen as Less Risky. ‘Wall Street’ analysts think the stock price will be worth 13.7% more (average). Ticker symbol: NVDA US.
What’s My Risk / Reward and Time Horizon?
We found 90 days to be the optimal trade horizon, after testing a number of possible alternatives (accuracy of previous returns). Otherwise consider closing out this trade once the target level of 335.81 (+10.2%) has been reached. Based on NVIDIA CORP’s recent up and down swings, LongShortBets suggests considering to set a stop loss level for this insight at 262.59 (last price at 304.59), which is equivalent to a -13.8% decline.
For more investment insights, please visit us at www.LongShortBets.com