Last time I mentioned Adv Micro Devices (ADM) and said not to sleep on it, despite the fact there has been a preponderance of tiny green bars. Thursday the stock opened sharply lower, was down $11 or almost 5% on the day…. then remarkably it traversed all that decline and closed slightly higher on the day! Certainly looks like the path of least resistance is up. Thursday was a classic liquidity grab, where weak longs get shaken out. The market is a continual transfer of money from weak hands to strong hands, and I believe today will prove to be a great example of that, 

Despite the fact that valuations in any traditional sense don’t justify a bullish outlook, for the short term at least, I think the market still wants higher. It’s not going to surprise me to see an acceleration once we are into new all time highs. Won’t end well, but not time for the end just yet in my view.  

Thanks,

Joe

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