Texas WedgieTXN forming a wedgie, looks like it's gonna gap up tomorrow morning. Guessing it will close the gap right away like MSFT did.
Here's the funny thing, they made less than last year yet it's going to ATH because they beat estimates which are lower than last year's.
Every DOW component doing the same stupid thing, NKE net income the past year was lower than 2017, lol. Stocks are completely disconnected from reality, but you can't trade on fundamentals. Stock market is in a bubble, it's like trading Bitcoin now.
Note: I'm not planning on trading TXN.
TII trade ideas
Texas Instruments is forming a huge inverse H&S, $120 neckline.TEXAS INSTRUMENTS INC. NASDAQ ($TXN). To look at the chart you would not associate it with a stock in the Semiconductor sector, after the declines in 2018 it has now rallied 30% from the lows and is hitting at the door of a major breakout. From a technical perspective the weekly chart has developed what appears to be a inverse H&S in conjunction with the RSI. The remaining indicators are setting up bullish with the exception of the Momentum indicator which is a worry as it lags as does the volume profile.
So as to get a breakout there needs to be a serious increase in volume to cross the $120 neckline and maintain a rally to the $140 level.
AVERAGE ANALYSTS PRICE TARGET $116
AVERAGE ANALYSTS RECOMMENDATION OVERWEIGHT
P/E RATIO 21
SHORT INTEREST 2%
COMPANY PROFILE
Texas Instruments Incorporated engages in the design and manufacture semiconductor solutions for analog and digital embedded and application processing. It operates through the following two segments: Analog & Embedded Processing. The Analog segment semiconductors change real-world signals such as sound, temperature, pressure or images, by conditioning them, amplifying them and often converting them to a stream of digital data that can be processed by other semiconductors, such as embedded processors. The Embedded Processing segment designed to handle specific tasks and can be optimized for various combinations of performance, power and cost, depending on the application. The company was founded by Cecil H. Green, Patrick Eugene Haggerty, John Erik Jonsson and Eugene McDermott in 1930and is headquartered in Dallas, TX.
TXN BreakoutTXN has tested all time high resistance over three times and is heading up to its 4th test. With each test, the resistance gets weaker, leading me to believe we will see a breakout of roughly 6% for swing trading purposes where I would take profit. The market and major index's have been choppy over the last week and have made new highs then have been slightly retracing. I believe there is a little left of this rally for this breakout buy, but take profits before its too extended.
$TXN This is a pivotal earnings report for the entire market. Tonight's earnings report from Texas Instruments must not be underestimated in importance. It will be pivotal for the continued stimulus and optimism in the tech sector which has once again powered the recovery from the December lows. We would love to be very optimistic on the name as we hold NVDA and AMD but we are quite worried about the implications of a miss on earnings and even more so in negative earnings projections. IF it jumps the market will rally with it and vise versa.
TXN - Analog Chip maker investing in new technologyTXN shows a cross-over on MACD at Fibonacci Retracement 0.500 and on 1 hr. chart likely having a short dip below $97 entry area. Recently increased their dividend nicely over last 5 years as well.
Been watching them invest in R&D and they have chips in growing markets for 5G, automotive, communication and industrial.
In the last 12 months, TXN has returned all of free cash flow back to shareholders and increasing the dividend by 24% and repurchasing another $12B in its own stock.
Investors come to own conclusions. More VIX challenges ahead on the short likely. $US still holding.
$TXN Texas Instruments Short - Bearish Options Activity$TXN Texas Instruments forming into a descending triangle on the weekly chart. Rejected off the 20d ema line resistance last week.
Targeting a move down to the $84.00-$88.00 range by March (assuming unimpressive or worse earnings report late January). Could possibly see us going as low as ~$80.00 to tag the 200d ema line.
Also of note - unusual bearish options activity today with 2k $97.50 strike (in-the-money) Feb. 15th put options traded for about $1M in premium.
Note: Informational analysis, not investment advice.