The Big 3: AMD, USDE, META

Marlee Caden (0:02)

Welcome back to Trading 360 I'm Marlee Caden. It's time for The Big Three. We've got three stocks for you and three charts. Rick Ducat taking us through those charts. As always, here to take us through the trades is Tim Bohen, Chief Technical Trainer at stockstotrade.com. Tim, great to have you on. Would love to get your thoughts on the market action we've seen this week. We got consumer sentiment, not surprisingly, at a four-month low here this morning, but doesn't seem to be affecting the markets much. We've got a much better picture to start out today than we have the last two days.

Tim Bohen (0:32)

Yeah, I mean, I'm sure this won't surprise you, Marlee, or Rick, or any of the viewers that have seen me on the Big Three before.

To me, it's really just become this one-dimensional market. And I don't think that's a bad thing, okay? And when I say one-dimensional market, it is the AI plays, particularly the hardware infrastructure ones. I'm gonna talk about that in a minute.

But at the end of the day, you've got this 800-pound gorilla that is the AI stocks, whether it be hardware or whether it be the Metas that are releasing these amazing agents. My love of agents has been clear.

Or the VR glasses. I mean, it's really, to me, no matter how bad the news is, and we've talked about this almost all year, inflation, consumer sentiment, price of oil, your previous guest, I loved his point where if we could get oil under control, look out. But I mean, all of these overarching kind of baggage holding the market down, but then, you know, back to that 800 pound gorilla analogy, you've got that guy just that he just keeps, he has the whole market strapped on his back and he keeps carrying it higher. Now, a lot of people might not like that, because some people like to hold a big basket of stocks or the exposure in the retirement accounts, they've got all these multi-layered approaches to the market. But what I do, almost exclusively, is day trade a small handful of stocks that are in the hottest sectors, that are the leaders. And if you do that, you love this kind of market because it just makes it really clear to know what to trade. I mean, I look at an example of Akamai that you and Alex broke down a few minutes ago. Really like that. I mean, I struggled about putting Akamai on the list today. It didn't make it simply because that chart's kind of messy. But at the end of the day, look for the diamonds in the rough and you can kind of not worry about a lot of this data because there's always solid stocks and especially in this sector, they're all the leaders.

Marlee Caden (2:47)

And Tim, you didn't put Akamai on, you did put an adjacent name that's getting a nice boost and also got a price target hike this morning because of the CPU outlook tied to AMD. So let's talk about your first pick today. You've brought AMD to us, trading higher on the session. We're up about a half a percent, but B of A upping the price target because of that Akamai Anthropic Teal.

Tim Bohen (3:10)

Yeah. I mean, compute, compute, compute, compute, compute, compute. I mean, I don't know if I said it five times, I could probably say it a thousand times. The biggest, the most valuable resource out there, maybe someday more than oil. I mean, I have called compute power and AI, the new oil basically, but there is just this insatiable demand. No one can buy enough hardware to support the load.

We're going to talk about Meta here in a minute.

I love their Muse AI, especially for people that are new to agents, but they're all, I mean, here's Facebook. I mean, Facebook probably has more data centers than anybody and they're all a week in, they're struggling with capacity issues. People are getting timeouts. I mean, so many people want to use this technology and not even the biggest of the big, Facebook has enough compute to feed that. Now, that being said, still love Meta, we'll come back to that. But I mean, you look at that chart, I mean, it's just beautiful. The reaction to the news, NVIDIA, we all know the story with NVIDIA, and at the end of the day, AMD, I hate to put them down, it's just kind of a baby NVIDIA. I mean, it's the same sector, they make very similar products, they just don't have quite the star power of Jensen Wang. So, absolutely love AMD. And then I did want to point out that, normally, I just talk, buying the stocks, et cetera, but really interested in the 650 calls for next week, especially if this can either pull back a little bit, or really just kind of close right here where it is, right at that red to green line, we call it, of about 630 But if you're an options trader, definitely keep an eye on those 650 calls for next week.