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Texas Instruments’ bearishness to continue after the break below key support

Texas Instruments Incorporated (NASDAQ:TXN) was among the best-performing semiconductor names last year. Increased demand for chips amid a supply crunch…

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Texas Instruments Incorporated (NASDAQ:TXN) was among the best-performing semiconductor names last year. Increased demand for chips amid a supply crunch led to robust 2021 gains. The company held strong this year, but escalating headwinds have hit the stock.

TXN is down 17% year-to-date. This year’s slowdowns have been due to Chinese lockdowns. In its first-quarter results in April, Texas Instruments recognized the weakness. The company guided a second-quarter revenue between $4.20 billion and $4.80 billion.

The revenue was below estimates of $4.94 billion. The company attributed the weak guidance to Covid-19 lockdowns in China. Texas Instruments still reported $4.91 billion in sales in the first quarter. The revenue exceeded the $4.74 billion estimates, indicating the company’s strengths.

A sector overview shows Texas Instruments is suffering the same fate as rivals. The SPDR S&P Semiconductor ETF has fallen by 32% year-to-date. The weakness has not abated despite a continued easing of restrictions in China.

This thesis postulates that investors could also be scared by the high valuations of semiconductor names. Investors could already be taking profits after a Covid-19 surge. As a result, TXN will continue to fall in the short and medium term.

Bearish TXN could fall up to $134

Source – TradingView

Technically, TXN is bearish after breaking below key support at $162. The support has held prices this year. A break below heightens the already building bearish momentum. We expect the stock to continue falling in the foreseeable future. The stock could decline up to the potential support at $134.

Summary

Texas Instruments is facing more bearish weakness. A second-quarter guidance miss increased the bearish pressure amid sector weaknesses. The stock could fall to find support at $134.

The post Texas Instruments’ bearishness to continue after the break below key support appeared first on Invezz.

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Best Penny Stocks To Buy: 4 Short Squeeze Stocks To Watch Now

Penny stocks to buy: Here’s what short interest traders think
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Penny Stocks To Buy: What To Look For

This article will discuss a handful of penny stocks to buy according to those looking for short squeeze stocks. If you’ve seen our other articles about cheap stocks with high short interest, you know that there are a lot of risks that go along with potential rewards. A quick yield means everything to traders looking to catch a short squeeze. The moves up can be legendary, but the moves lower can bring crushing blows to anyway caught on the wrong side of the trade.

The last few weeks have shown the market exactly how massive short squeezes can grow. AMTD Digital (NYSE:HKD) was the fuse that sparked the snowball effect for these trading trends. This week that continued with the latest penny stock to squeeze: Intelligent Living (NASDAQ:ILAG).

In most cases, there is very little news, if any, to act as a fundamental catalyst. With the majority of short-interest stocks, technical aspects of trading take precedence. Case in point, ILAG stock exploded 260% within about a day’s worth of time and the company didn’t release a shred of news or a single corporate filing. But it does have a tiny float and bullish momentum heading into the Monday session, which set the stage for the latest move.

Penny Stocks To Buy With High Short Interest

Does this mean all penny stocks with high short interest are destined for massive breakouts? No, and there’s usually a reason for high short interest. It usually doesn’t coincide with companies doing record revenues or experiencing ongoing growth.

Short interest grows based on traders betting the stock will fail. They’ll short it by borrowing shares from a broker, selling them, then repurchasing them later when prices are lower to return the borrow.

How To Find Short Squeeze Stocks

When a short squeeze triggers, prices move in the opposite direction, forcing shorts to cover their positions early and either break even or take a loss. This short covering, paired with high levels of retail buying, triggers a more significant move in the stock.

Let’s look at a handful of penny stocks with higher short interest. Data we’ve found using resources like TrueTradingGroup.com’s Unusual Options & Short Data Tool.

  1. Karyopharm Therapeutics Inc. (NASDAQ:KPTI)
  2. Helbiz Inc. (NASDAQ:HLBZ)
  3. Purple Innovation Inc. (NASDAQ:PRPL)
  4. Ostin Technology Group (NASDAQ:OST)

1. Karyopharm Therapeutics Inc. (NASDAQ: KPTI)

KPTI Stock Price as of this Article: $4.85

What Does Karyopharm Therapeutics Do?

The commercial stage pharmaceutical company develops cancer therapies, including multiple myeloma, endometrial cancer, myelodysplastic syndromes and myelofibrosis. Its lead SINE compound and XPOVIO platform is approved in the US in three oncology indications. Last quarter, the company achieved net product revenue 44% higher than Q2 2021 at $29 million. It also received full marketing authorization by the European Commission Expanding Indication for NEXPOVIO (trade name in Europe) for adults with multiple myeloma.

[Read More] Best Penny Stocks To Buy In August According To Insiders, 1 Bet Over $2 Million

A sales and earnings beat has helped build back some optimism that was lost over the last few months. It was also enough to raise the eyebrows of HC Wainwright analysts, who reiterated a Buy on KPTI stock and paired it with an $18 target.

KPTI Stock: A Short Squeeze Stock To Watch?

According to data from TrueTradingGroup.com’s Unusual Options & Short Data Tool, the current short float on KPTI stock is 25.11%.

2. Helbiz Inc. (NASDAQ: HLBZ)

HLBZ Stock Price as of this Article: $1.31

What Does Helbiz Do?

Another one of the names on this list of penny stocks is Helbiz Inc. The company specializes in “micro-mobility,” which is a fancy word for things like eScooters, eBikes, and eMopeds. Its fleet management technology uses artificial intelligence and environmental mapping to sustainably scale and manage its assets.

A recent partnership with Logan City Council in Australia will see Helbiz operate up to 400 eScooters and 400 eBikes later this month. “This latest partnership marks a significant step towards bringing safe, sustainable transportation alternatives to Australia. This announcement follows the plan to introduce 500 e-bikes in Sydney and 100 e-scooters in Alloggio resorts later this year,” said Mitchell Price, Helbiz Australia Managing Director.

HLBZ Stock: A Short Squeeze Stock To Watch?

According to data from TrueTradingGroup.com’s Unusual Options & Short Data Tool, the current short float on HLBZ stock is 32.64%.

3. Purple Innovation Inc. (NASDAQ: PRPL)

PRPL Stock Price as of this Article: $4.22

What Does Purple Innovation Do?

Purple Innovation is a slower and steadier mover compared to other names on this list of penny stocks. Shares have climbed from lows of $2.90 to highs of $4.40 over the last few weeks as PRPL stock attempts to reclaim some of this year’s losses.

[Read More] Best Penny Stocks To Buy? 3 To Watch After MEGL Stock Hits 5798%

You may have seen Purple advertised on social media for its “no pressure mattress” technology. The company offers “comfort solutions” ranging from mattresses and pillows to bedding and frames. This week investors are likely waiting to see if Purple can turn things around. The next round of earnings comes on August 9th, and guidance will probably be on the menu. Last quarter, Purple management cut its guidance.

Chief Executive Officer Rob DeMartini explained, “We remain in the early stages of creating the framework for strong operational execution. While we are making progress and believe we will see sequential improvements, including second-half profitability during this year, evolving economic and post-pandemic headwinds such as a shift in consumer buying behavior from online to in-stores and away from home related categories toward experiences and travel, has caused us to adopt a more conservative view on the remainder of 2022.”

PRPL Stock: A Short Squeeze Stock To Watch?

According to data from TrueTradingGroup.com’s Unusual Options & Short Data Tool, the current short float on PRPL stock is 25.24%.

4. Ostin Technology Group (NASDAQ:OST)

OST Stock Price as of this Article: $3.12

What Does Ostin Technology Do?

Ostin Technology supplies display modules and polarizers in China. It recently secured a $2.6 million deal for a purchase order of LCD/TP display modules expected for use in iGame G-ONE Plus gaming PCs.

CEO Tao Ling said in a July update, “We believe our products are able to power the iGame G-ONE Plus AIO gaming PC and provide an unrivaled gaming experience for gamers. We are dedicated to meet our customers’ evolving needs and have focused on establishing and maintaining long term relationships with our customers, in an effort to ensure our sustained development and improved profitability.”

OST Stock: A Short Squeeze Stock To Watch?

Other than the short float percentage, the borrow fee rate is something that traders look at. This is a fee that a broker charges for borrowing shares. Typically, the higher the fee, the more difficult it is to borrow the stock. According to data from TrueTradingGroup.com’s Unusual Options & Short Data Tool, the current borrow fee rate on OST stock is 56.71%.

Penny Stocks To Buy For Beginners

If you’re brand new to trading penny stocks in 2022, here are a few good articles to check out and some extra info on the best way to learn how to day trade, swing trade, or invest for the long-term:

If you’re interested in learning more about penny stocks, the stock market, and how to trade, check out True Trading Group, the fastest growing & highest-rated online premium educational platform available today. True Trading Group offers a 7-day Trial of its platform for $3 (non-autorenewing, nonrecurring): To Learn More Click Here.

If you enjoyed this article and you’re interested in learning how to trade so you can have the best chance to profit consistently then you need to checkout this YouTube channel. CLICK HERE RIGHT NOW!!

The post Best Penny Stocks To Buy: 4 Short Squeeze Stocks To Watch Now appeared first on Penny Stocks to Buy, Picks, News and Information | PennyStocks.com.

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Fed reverse repo reaches $2.3T, but what does it mean for crypto investors?

Investors avoid risk assets during a crisis, but excessive cash sitting in financial institutions could also be good for the cryptocurrencies.

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Investors avoid risk assets during a crisis, but excessive cash sitting in financial institutions could also be good for the cryptocurrencies.

The U.S. Federal Reserve (FED) recently initiated an attempt to reduce its $8.9 trillion balance sheet by halting billions of dollars worth of treasuries and bond purchases. The measures were implemented in June 2022 and coincided with the total crypto market capitalization falling below $1.2 trillion, the lowest level seen since January 2021. 

A similar movement happened to the Russell 2000, which reached 1,650 points on June 16, levels unseen since November 2020. Since this drop, the index has gained 16.5%, while the total crypto market capitalization has not been able to reclaim the $1.2 trillion level.

This apparent disconnection between crypto and stock markets has caused investors to question whether the Federal Reserve’s growing balance sheet could lead to a longer than expected crypto winter.

The FED will do whatever it takes to combat inflation

To subdue the economic downturn caused by restrictive government-imposed measures during the Covid-19 pandemic, the Federal Reserve added $4.7 trillion to bonds and mortgage-backed securities from January 2020 to February 2022.

The unexpected result of these efforts was 40-year high inflation and in June, U.S. consumer prices jumped by 9.1% versus 2021. On July 13, President Joe Biden said that the June inflation data was "unacceptably high." Furthermore, Federal Reserve chair Jerome Powell stated on July 27:

“It is essential that we bring inflation down to our 2 percent goal if we are to have a sustained period of strong labor market conditions that benefit all.”

That is the core reason the central bank is withdrawing its stimulus activities at an unprecedented speed.

Financial institutions have a cash abundance issue

A "repurchase agreement," or repo, is a short-term transaction with a repurchase guarantee. Similar to a collateralized loan, a borrower sells securities in exchange for an overnight funding rate under this contractual arrangement.

In a "reverse repo," market participants lend cash to the U.S. Federal Reserve in exchange for U.S. Treasuries and agency-backed securities. The lending side comprises hedge funds, financial institutions and pension funds.

If these money managers are unwilling to allocate capital to lending products or even offer credit to their counterparties, then having so much cash at disposal is not inherently positive because they must provide returns to depositors.

Federal Reserve overnight reverse repurchase agreements, USD. Source: St. Louis FED

On July 29, the Federal Reserve's Overnight Reverse Repo Facility hit $2.3 trillion, nearing its all-time high. However, holding this much cash in short-term fixed income assets will cause investors to bleed in the long term considering the current high inflation. One thing that is possible is that this excessive liquidity will eventually move into risk markets and assets.

While the record-high demand for parking cash might signal a lack of trust in counterparty credit or even a sluggish economy, for risk assets, there is the possibility of increased inflow.

Sure, if one thinks the economy will tank, cryptocurrencies and volatile assets are the last places on earth to seek shelter. However, at some point, these investors will not take further losses by relying on short-term debt instruments that do not cover inflation.

Think of the Reverse Repo as a "safety tax," a loss someone is willing to incur for the lowest risk possible — the Federal Reserve. At some point, investors will either regain confidence in the economy, which positively impacts risk assets or they will no longer accept returns below the inflation level.

In short, all this cash is waiting on the sidelines for an entry point, whether real estate, bonds, equities, currencies, commodities or crypto. Unless runaway inflation magically goes away, a portion of this $2.3 trillion will eventually flow to other assets.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk. You should conduct your own research when making a decision.

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Nvidia takes a big hit to gaming revenue: ‘it’s a clearing event for Nvidia’

Nvidia Corporation (NASDAQ: NVDA) is down 8.0% on Monday after the tech company said its Q2 revenue came in sharply below its expectations. Nvidia blames…

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Nvidia Corporation (NASDAQ: NVDA) is down 8.0% on Monday after the tech company said its Q2 revenue came in sharply below its expectations.

Nvidia blames gaming revenue for weakness

Nvidia generated $6.70 billion in revenue, as per the preliminary second-quarter report it published this morning. This compares to $8.10 billion it had guided for in May.

Much of the weakness, as per the semiconductor giant, was related to “gaming” that tanked 44% sequentially. Data Centre revenue also missed expectations on supply constraints. Nonetheless, the long-term gross margin profile, CFO Colette Kress confirmed, was intact.

We have slowed operating expense growth, balancing investments for long-term growth while managing near-term profitability. We plan to continue stock buybacks as we foresee strong cash generation and future growth.

The news comes more than a week after the U.S. House of Representatives approved the $280 billion bill to boost microchip production.

Jim Cramer reacts to the Nvidia preliminary Q2 report

The preannouncement was more alarming considering gaming makes up the largest chunk of revenue for the chip company. Still, Jim Cramer remains constructive on Nvidia as it’s a “big part” of many industries. This morning on CNBC’s “Squawk on the Street”, he said:

I’m not saying this is disastrous because the stock multiple has shrunk. I’m saying that it’s a reminder that gaming was very much a COVID phenomenon. It’s so yesteryear. It’s a clearing event for Nvidia. It’ll now be viewed as an industrial and data centre company.

Interestingly, Nvidia, in Q1, had its revenue from “data centre” surpass gaming for the first time in its history. Bulls, therefore, would argue that the Santa Clara-headquartered firm is well-positioned to offset the post pandemic decline in gaming by expanding share in the data centre.

Nvidia is scheduled to report its fiscal Q2 results on August 24th. Down more than 40% year-to-date, Wall Street is convinced shares of Nvidia are worth buying as reflected in its consensus “overweight” rating on the stock.

The post Nvidia takes a big hit to gaming revenue: ‘it’s a clearing event for Nvidia’ appeared first on Invezz.

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