Pictures have been very quiet as the cryptocurrency has hovered around the $60,000 level since the beginning of August. That trading range has added pressure to companies that mine Bitcoin and other cryptocurrencies like MicroStrategy (MSTR).
Lite Bitcoin, MicroStrategy has been trading in a rather tight trading range through the month of August. The stock has ranged between $125 and $150.00.
Bitcoin has been generally viewed as a hedge against market volatility, but it's actually a better indicator of investors risk appetite. Over the last two months, investors have clearly been choosing gold as a better hedge against market volatility over Bitcoin.
That strength in gold and the weakness in Bitcoin is leading to weakness in cryptocurrency miners.
Today, MicroStrategy broke below $125.00 for the first time since August 5th. It's notable that the stock's 50 day moving average has been in a downtrend since that date.
From a perspective, MicroStrategy's 200 day moving average is the next line of support. That price remains at $115.00 per share. A break below that $150.00 price point would target the stock to $100, a price that hasn't seen since May of 2024.
Showing of Boeing (BA) are trading down more than 7% today as the stock is being affected by an onslaught of headlines amid market volatility.
Early morning trading started with the headline that Boeing was being downgraded at Wells Fargo with a price target of $119. The currently trades at 160 dollars.
In addition to the downgrade, Boeing has been hit by headlines surrounding the stranded Starliner spacecraft. Fox hoarded over the weekend that an astronaut said there was a "strange noise" coming from spacecraft.
As if that weren't enough, investors are also trying to figure out how much a possible strike could cost Boeing as talk deadlines with the union loom. Last month, the union voted in support of the strike of 32,000 workers. The current contract with the International Association of Machinists is due to expire at 11:59 pm PT on September 12.
Today's volatility in selling pressured Boeing shares below the $165 price level. That price level has held as support twice since April. While that support has been held in place, the stock has failed to launch on a number of attempts, leaving shares trapped in a tight trading range.
Boeing’s price chart indicates potential for the stock to move to $125 over the next 4-6 weeks. A move below that price would target the psychologically important $100 as the next “line in the sand” for Boeing.
Boeing stock has been in a long-term bear market trend since February and currently holds a price target of $125.
The VanEck Semiconductor ETF (SMH) had its worst day since August 1st as panicked investors are starting to drop out of the AI trade quickly.
Shares of NVIDIA (NVDA), Broadcom (AVGO), Taiwan Semiconductor (TSM) and other large cap semiconductor stocks dropped more than 7% as a group on Tuesday.
The heavy selling pressure comes as investors are ratcheting-up their fear following last week’s earnings report from NVIDIA.
Also adding pressure to the semiconductor sector’s selling spree is the historically significant September seasonality. September accounts for the most volatile and worst performing month of the year over the last 20 years with stocks posting gains only 40% of the time.
Major chart indicates that support for the semiconductor sector should stand at $200, as this was the bottom in both April and August of 2024.
A break below that key price level would set a new target of $175 for the SMH shares. That price was last seen in January of 2024.
A pullback of that magnitude would represent a 22% decline from current prices and a total of almost 40% decline in the semiconductor sector ETF from its July highs.
Shares of the VanEck Vectors Semiconductor ETF remain in a long-term bull market trend with a price target of $325.
