Stocks kicked off December on a sour note, pulling some of November's best performers lower. Chip stock AMD could have more downside, according to two traders.
One top-performing chipmaker could be among those susceptible to further weakness in the near term, according to Katie Stockton, founder of Fairlead Strategies.
"AMD [cleared] its summertime highs and also long-term resistance from prior to that. The breakout saw great follow-through, ran up about 12% in November, and of course now there's room to [fall to] support based on that breakout point, which was roughly $34 to $35," Stockton told CNBC's "AMD would need to fall 12% to get back down to $34. The stock has not broken below that level since late October.
"A pullback to that support level would actually be welcome from a technical perspective and that would increase the risk-reward ratio following that breakout so I do think some of these stocks that have run up following breakouts are prone to pullbacks, more so than the broader market or major indices, but I would see them as opportunities to add exposure," said Stockton.
"It's trading in a really high multiple because sentiment generally has been pretty positive, but it's also a stock that's highly correlated to architecture and construction, so if those things start to look ugly, or the global economy looks to be weakening, the multiple is going to pull back," Tepper said.
France Dernières Nouvelles, France Actualités
Similar News:Vous pouvez également lire des articles d'actualité similaires à celui-ci que nous avons collectés auprès d'autres sources d'information.
Volunteer fire department in San Diego County transitions to professional one after legal fightThe move came months after Julian, Calif., voted to dissolve the region’s last volunteer fire department, which became a symbol of old ways versus new.
Lire la suite »
Boris Johnson is trying to avoid a one-on-one meeting with Trump. Here's whyWhy Boris Johnson doesn't want a one-on-one meeting with Donald Trump, Democrats worry the impeachment fight is hurting them at the polls, the Iowa caucus roller-coaster, and a GOP family feud in Georgia. That and more in this week's Inside Politics forecast.
Lire la suite »
Donald Trump is the man no one in Britain wants to dance withCNN News, delivered. Select from our newsletters below and enter your email to subscribe.
Lire la suite »
Volkswagen Is Accelerating One Of The World’s Biggest Smart-Factory ProjectsVW’s group CIO, Martin Hofmann, is part of a team leading an ambitious plan to infuse the auto giant’s plants with cloud-powered intelligence against a backdrop of mass layoffs in the German car industry.
Lire la suite »