 Hey everyone, this is Dan with another episode of my AMD and NVIDIA videos. I posted the fundamental analysis of the two companies about 3 days ago. At that time, I said I might be buying on a dip. Now that both stocks are still more than 15% from the all-time highs, definitely it gives me even more reason to buy on a dip. There's, however, still the danger of the Fed QE tapering and interest rate increases working in the background, which can cause AMD and NVIDIA to go down again. What do we make of all these intertwining factors? Some of the answers might be found in the charts. Let's get into the details. This is the daily chart for the last year. AMD represented by the candlestick line went up by 46%. NVIDIA, the yellow line went up by 87%, both very impressive. The broad market represented by QQQ, and SPY went up only between 9% to 17%. Pretty nice, but not nearly as good as AMD and NVIDIA, that's why I like these two stocks so much. If we look at the last 3 months, the picture is flipped. AMD and NVIDIA went down by about 10% to 12%, whereas the broad market went down also a little bit. QQQ was down by 7% and SPY down by 2%. If you look at the last leg of this chart, that's in the last couple of weeks, it seems to be rebounding for these two stocks. So we're zooming into the 5-day chart, 30-minute period. Sure enough, AMD recovered nicely, went up by 14%, especially this jump, that was really impressive. That's the day when they announced the quarterly earnings, and the quarterly earnings definitely impressed the investors a lot. And then NVIDIA went up a little bit by 4.29%, SPY and QQQ went up by about 1-1.7%. In the fundamental analysis video I posted on February 6th, I talked about the market climate because for us to be able to invest profitably in AMD and NVIDIA, we need to understand a big picture. It is difficult for a stock like AMD or NVIDIA to escape the momentum of the broad market. If the broad market is going to go up, most likely it's going to pull the individual stocks up and if the broad market is going to tank because of some macroeconomic issues, most of the stocks will go down with the broad market. That's why we need to have the big picture in mind. In that video, I mentioned a few things. First of all, NASDAQ dropped 18% since the end of November and it started to recover about two weeks ago. We are facing high inflation rate at 7%, CPI and low unemployment rate at 4%. That means Fed is going to take the opportunity to do QE tapering, decreasing liquidity in the market and raising interest rates to control inflation and most analysts expect the Fed to raise rates three to five times in 2022. That means the stock market will be adversely affected by the actions of the Federal Reserve banks. The question is how much? Then based on the earnings data from the fourth quarter 2021, it looks pretty nice. Among the S&P 500 companies, 76% have reported a positive EPS surprise and 77% have reported a positive revenue surprise. However, going forward for the first quarter 2022, many companies are taking a conservative approach and they have issued negative EPS guidance so far. There are 34 companies that issued negative guidance whereas only 13 S&P 500 companies have issued positive EPS guidance. The companies are being cautious in light of the fact that the inflation rate is high and that the Fed is going to tighten the liquidity and also raise interest rates. And therefore I'm going to be taking a cautious approach with my investment activities as well. In this other video I posted on January 30th, when I looked at the macroeconomic condition in the broad market, I predicted that the market as represented by SPY is being going like this so far. We see a small recovery in the last couple of weeks and going forward I don't expect the market to be shooting for the moon anytime soon. Most likely it's going to ping-pong up and down and will be constrained by the all-time high of 479 SPY and then some of the lows will be retested and basically it'll move sideways along this horizontal channel for the next couple of months. But in the meanwhile, we still have a lot of opportunities to make profits with AMD and NVIDIA the reason why is because they've been down so much already. If you like what you're seeing so far, I'd like to encourage you to click the like, subscribe and notification button so that you'll be notified when I publish my next video and it will also encourage me to make videos like this in the future. Thank you very much. Let's continue. We have a lot to cover. In my fundamental analysis video for AMD and NVIDIA, I predicted that AMD would reach $160 a share and NVIDIA reached $310 a share before the end of June 2022. At the time AMD was at $123 and NVIDIA was at $243 a few days ago as of last Friday. So today AMD already went up to $132, definitely moving in the direction that I predicted. However, it's still 19% from its all-time high and NVIDIA also moved up in the direction I predicted to $267 a share but it's still 23% from its all-time high. That means if I am to buy shares of AMD and NVIDIA in the next couple days, I still have the opportunity to realize the profit of 19 to 23% if these stocks get back to the all-time highs. In the fundamental analysis video, I showed the calculations I used to arrive at my valuation of the two companies. You can refer back to the video for the details. I also compared the analyst opinions between November 30th, 2021 and February 6th, 2022. In general, the price targets for AMD went up and the price targets for NVIDIA pretty much stayed the same. That means the analysts are still fairly bullish about these two companies. The reason why the prices have been dropping was because of the effect of the broad market. Let's look at the AMD chart. This is the daily chart. As we can see, it reached an all-time high here. That was back in the end of November and then it went down a little bit, tried to recover and came down again and it started to rebound around January 18th, January 19th or so. If you look at the last two weeks, it's been going up, although at this point, it's still 19% from its all-time high. My prediction is that the price is probably not going to just go straight up to the all-time high or exceeding the all-time high. It'll most likely come down a little bit, retest some of these points or maybe even close this gap and then hopefully it'll rebound, make the higher low and continue to march up and ping-pong along like this in the next couple of weeks. I will probably not buy at this point, but when it starts to come down and starts rebounding, that's the point when I'm most likely going to buy more shares and I'll explain more in the next few minutes. If you look at RSI, we had an overbought situation here, so we reached a short-term peak and then another overbought situation here and then it started to come down, sure enough. At this point, the RSI is not too high and the daily DMI indicator is showing a bullish buy signal, same with the MACD indicator, bullish buy signal. But if you zoom in to the hourly chart, certainly in the last couple of weeks, being on a bullish trend, it has overcome this resistance level, fortunately, just by a couple of dollars and the next level of resistance will be at 141 and I'll talk more about support and resistance levels in the next couple of minutes. If you look at RSI, we had an overbought situation here, sure enough it came down for a day or so and then before it started to march up again and now RSI is still a little bit high, it might be coming down a little bit in the next few hours. I won't be buying just now, I will wait for the RSI to get to about this level before I think about buying more shares. If you look at DMI on the hourly chart, it's been bullish since a couple of days ago and MACD also turned bullish a couple of days ago, although at this point it's almost turning bearish and that's why most likely I'll wait for a few hours or maybe even one or two days before I consider buying more shares. Let's look at support and resistance levels. I've drawn the Fibonacci retracement chart using this point, intraday min that we encountered in the end of January as a minimum point for the Fibonacci retracement diagram and this point around November 28th, the intraday max at 164 is the maximum point for this retracement diagram. For support levels, I see the next level of support at 129, the 50-day exponential moving average, the blue dashed line here and then the next level down would be 126, the 100-day exponential moving average, the yellow dashed line, the next level of support will be 115, 200-day exponential moving average, the red dashed line and then finally we have this previous min of $91 a share and hopefully the price will not get to that point if the price does drop below $91 a share that's going to be a very bearish sign at that point. I will have sold most of my shares so that I could buy them back at a lower price. For resistance levels, the next level up will be 139 and Fibonacci 61% right here. See, it was the resistance level for these two days and then the next level up will be 141, that's upper Bollinger Band right around here and then the next level up will be 150, the Fibonacci 78%, so that was the resistance level here, here, here, that's a strong historical resistance level and then of course we have the all-time high of $164 a share. In the meanwhile, I will not rule out the possibility of swing trading AMD when it's moving between $164 and $91, hopefully it'll continue to make some higher lows and then finally hit the resistance at $164 and bounce back and then continue to go sideways for the next two, three weeks. I'll be out. Let's look at NVIDIA. This is the daily chart as we can see that it's been down 23% from its all-time high and if you look at the RSI indicator, it was overbought at this point around the middle of November and sure enough the price started to drop. As of now, RSI, it's at a fairly reasonable level, at least on a daily chart. DMI, it's just turning bullish, MACD turned bullish about four days ago. Let's zoom into the hourly chart. The hourly chart is being bullish since the end of January. The price has overcome this resistance point of $260, which is good news. In the meanwhile, the next level of resistance will be at around $285. RSI is showing a relatively high level. The price might be pulling back a little bit in the next few hours, so most likely I'll wait for at least a few hours or maybe a day or so before I consider buying more shares, just like what I would be doing with the AMD shares. DMI turned bullish a couple of days ago on the hourly chart. MACD also turned bullish a couple of days ago, although at this point MACD, it's about term bearish and that's why I will definitely wait for a few hours or maybe four days when the price starts to rebound at a lower level than maybe I'll buy more shares. Let's look at support and resistance levels. I've drawn the Fibonacci retracement diagram using this minimum point, intraday minimum point around January 19th or 20th or so, and then the maximum point right around November 21st. For support, the next level of support will be at $258, which is right here, the yellow dash line, and that's a 100-day exponential moving average. The next level of support will be $246. That's the middle of the bullish band, 20-day simple moving average. That's going to be a very important support point if the price can bounce up from here as they above the middle of the bullish band, that will be a very bullish sign. However, if the price cuts below the middle of the bullish band then that's going to be pretty bearish and the price might continue to go down until it gets to the next level of support, which is $231 and that's the red dash line, $200 exponential moving average. And then of course we have this minimum point, rich here at $208 a share. If the price does go below 208, that's definitely going to be a very bearish sign. At that point, I will have so most of my remaining NVIDIA shares and hoping to buy them back at a much lower price later on. For resistance, I see the next level of resistance at $277 and that's the Fibonacci 50% line. That's going to be a fairly strong resistance and coincidentally that's the upper bullish band. That's going to be a tough resistance. And then the next level of resistance will be 293 and that's Fibonacci 62% and the next level up will be 317 here, Fibonacci 78%. And then of course we have the all-time high of 346 which will definitely be a very strong resistance. Again, the price I don't think is going to go straight up to all-time high and beyond. Most likely it will go up for another two, three days at most and then it will come down and test some of the support levels. Hopefully it'll rebound making a higher low and continue to go up until it hits the all-time high and then it will come back again. That way it'll ping-pong up and down going sideways for the next few weeks. What are my strategies? First, I've been holding some AMD and NVIDIA shares for the long-term because I'm very bullish about the two companies for the long-term. And I've been swing trading the rest of the shares. For example, I sold some AMD shares on February 3rd with 5% gain when the price was dropping. In general, I would sell when the price pulls back at a key resistance level or when it fails to be supported at a key support level or when adverse news develops. And I'll buy in general when the price bounces back from a key support level or when positive news develop. I'll definitely be mindful of any corporate news from the two companies, any actions from the federal reserve banks, macroeconomic events and the RSI level. I'll definitely be watching the inflation numbers, the QE tapering actions from the Fed as well as any interest rate movements. I will update my subscribers by way of Twitter almost on a daily basis. At this point I'd like to suggest that you subscribe to my Twitter account which is DanMarketL in addition to subscribing to my YouTube channel. For example, on January 31st, I tweeted that I bought ASML, AMD and UCO shares. And then on February 3rd, two, three days later, I tweeted that I sold my AMD shares at an average 5% gain because the market started to drop that afternoon. And then on February 8th, I tweeted that I sold the UCO shares I bought on January 31st at a 3% gain. That's because the US-Iran negotiation which will probably cause the oil price to drop. By the way, when I bought the AMD shares on January 31st, we were right here when the price was rebounding. And that turned out to be a very lucky move and I sold the shares right around here with the 5% gain. So I'm waiting for the price to come down again a little bit to retest some of the support points. And when it start rebounding, I will most likely buy more AMD shares. And I'll do the same with NVIDIA because the chart looks very similar for NVIDIA. Again, I'd like to encourage you to click the like, subscribe and notification button. As usual, I will very much appreciate your comments, questions and suggestions. This is about the rest of my video for now. I will chat with you again in the next few days. In the meanwhile, I'd like to wish you the best of luck with your financial investments. Among the S&P 500 companies, 76% have reported a positive EPS surprise and 77% have reported a positive revenue surprise. And that's Fibonacci 62%