The S&P index, having reached a session high of 12.43 points, has now dropped and is trading down by 4.07 points. Previously, it had also hit a session low of -6.29 points. The NASDAQ index shows a rise, up by 51.87 points or 0.25%, with session fluctuations ranging from 13.80 to 93.86 points. <\/p>\n
The Dow industrial average experienced a high of 45.06 points and a low of -108.15 points, currently near the lower end at -97 points or -0.22%. Nvidia and AMD stocks have moved higher, with Nvidia up 1.14% and Broadcom increasing by -0.94%. SMCI, involved with Nvidia chip production, rose by 7.64%.<\/p>\n
The US\/EU trade deal benefits US chipmakers, with AMD\u2019s target price being raised from $150 to $210 by UBS. Although AMD’s stock price has recovered by 128% since a previous 65% downturn, it remains below the 2024 high of $227, as today’s high of $174.70 tested an October 2024 peak of $174.05.<\/p>\n
The hourly chart shows AMD’s price trending upwards since April, staying above 100-hour and 200-hour moving averages, indicating bullish momentum. The current target of $174 suggests overbought conditions and possible consolidation unless the price falls below the 100-hour MA.<\/p>\n
We see the broader market is hesitating while the tech-heavy index pushes forward, driven by a handful of large-cap names. The CBOE Volatility Index, or VIX, has been trading near a historically low level of 13, suggesting traders are not pricing in significant downside risk for the overall market. This environment makes buying protective puts on broad indexes like the S&P 500 relatively inexpensive as a portfolio hedge.<\/p>\n
The semiconductor sector remains the primary engine, and we believe derivative strategies should be focused here. The PHLX Semiconductor Index (SOX) is up over 30% year-to-date, which confirms the leadership described in the report. The recent 10-for-1 stock split for the sector’s largest company, which became effective on June 10th, will increase liquidity and could attract more retail option traders to the entire chip space.<\/p>\n
For the specific chipmaker highlighted, the technical picture suggests a cautious but bullish approach as it tests a key resistance level. With the stock in a strong uptrend above its key moving averages, we would consider using bull call spreads. This involves buying a call option and selling another at a higher strike price to reduce the initial cost and bet on a measured move higher.<\/p>\n
Alternatively, for those who see near-term overbought conditions and expect consolidation, selling options offers another path. We think selling cash-secured puts with a strike price safely below the rising 100-hour moving average is a viable strategy. This allows a trader to collect premium while waiting for a potential pullback to a stronger support level.<\/p>\n
Historically, when a stock consolidates tightly below a major resistance level as this one is, it often precedes a powerful move. We would advise traders to watch the stock’s implied volatility closely for any significant expansion. A spike in volatility could signal that a breakout or breakdown is imminent, creating opportunities for strategies like straddles that profit from a large price swing in either direction.<\/p>\n
Create your live VT Markets account<\/a>\u00a0and\u00a0start trading<\/a>\u00a0now. <\/b><\/p>\n","protected":false},"excerpt":{"rendered":" S&P drops after earlier gains; NASDAQ rises; AMD surges as UBS raises target amid bullish momentum.<\/p>\n","protected":false},"author":62,"featured_media":16989,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[59],"tags":[],"class_list":["post-27478","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-live-updates"],"acf":{"acf_article_selection_author":null},"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/posts\/27478","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/users\/62"}],"replies":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/comments?post=27478"}],"version-history":[{"count":0,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/posts\/27478\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/media\/16989"}],"wp:attachment":[{"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/media?parent=27478"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/categories?post=27478"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/tags?post=27478"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}