Long-Short Equity Swing Trade Strategy: 25.39% Gain on AMD
The Impressive Swing Trading Strategy: Long-Short Equity Strategy (TA&FA) That Raked 25.39% for AMD
The dynamics of stock markets often present traders with a wide array of strategies to optimize their investment returns. One such successful tactic is the long-short equity strategy deployed by swing traders. A highlight of this strategy is the recent impressive return of 25.39% generated for Advanced Micro Devices, Inc. (AMD).
Swing traders typically adopt a technical analysis and fundamental analysis approach (TA&FA). Their strategy revolves around leveraging the fluctuations in asset prices to earn substantial profits. The AMD case is a spectacular manifestation of this strategy's efficiency when deployed effectively.
A noteworthy element of the strategy was the Aroon Indicator, a powerful tool used to determine whether a stock is trending or not and how robust that trend is. It was developed by Tushar Chande in 1995 and has since become a valuable indicator in a trader's toolkit.
For AMD, the Aroon Indicator entered an uptrend today, which historically has demonstrated a strong potential for further price increases. In fact, of the 249 instances when AMD's Aroon Indicator entered an uptrend, the price climbed further within the subsequent month in 213 cases.
This outcome signifies an 86% chance of a continued uptrend, thereby providing swing traders with the confidence to invest and capitalize on this opportunity. This scenario presents the potency of the long-short equity strategy (TA&FA) in swing trading, giving a deep insight into its practical deployment.
Moreover, this strategy, when aligned with the Aroon Indicator, allows traders to capitalize on price trends in the market, helping to generate lucrative returns, as demonstrated in the AMD scenario.
It's important to note that while past performance is not a guarantee of future results, the data underlining the Aroon Indicator's correlation with the upward trend in AMD's price is encouraging.
The long-short equity strategy, especially when complemented by the Aroon Indicator, can be a potent tool for swing traders. The impressive return of 25.39% generated for AMD reinforces the power of this strategy in the realm of stock trading, exemplifying the potential rewards that can be reaped through diligent application and interpretation of technical and fundamental analyses.
AMD sees its Stochastic Oscillator climbs out of oversold territory
On October 28, 2024, the Stochastic Oscillator for AMD moved out of oversold territory and this could be a bullish sign for the stock. Traders may want to buy the stock or buy call options. Tickeron's A.I.dvisor looked at 57 instances where the indicator left the oversold zone. In of the 57 cases the stock moved higher in the following days. This puts the odds of a move higher at over .
Technical Analysis (Indicators)
Bullish Trend Analysis
AMD moved above its 50-day moving average on October 25, 2024 date and that indicates a change from a downward trend to an upward trend.
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where AMD advanced for three days, in of 301 cases, the price rose further within the following month. The odds of a continued upward trend are .
The Aroon Indicator entered an Uptrend today. In of 231 cases where AMD Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
Bearish Trend Analysis
The 10-day RSI Indicator for AMD moved out of overbought territory on October 09, 2024. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 43 similar instances where the indicator moved out of overbought territory. In of the 43 cases, the stock moved lower in the following days. This puts the odds of a move lower at .
The Momentum Indicator moved below the 0 level on October 15, 2024. You may want to consider selling the stock, shorting the stock, or exploring put options on AMD as a result. In of 75 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
The Moving Average Convergence Divergence Histogram (MACD) for AMD turned negative on October 14, 2024. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 43 similar instances when the indicator turned negative. In of the 43 cases the stock turned lower in the days that followed. This puts the odds of success at .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where AMD declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
AMD broke above its upper Bollinger Band on September 26, 2024. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 67, placing this stock better than average.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. AMD’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating weak sales and an unprofitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (4.697) is normal, around the industry mean (7.487). AMD has a moderately high P/E Ratio (195.333) as compared to the industry average of (58.779). Projected Growth (PEG Ratio) (0.421) is also within normal values, averaging (2.825). AMD has a moderately low Dividend Yield (0.000) as compared to the industry average of (0.020). P/S Ratio (11.547) is also within normal values, averaging (43.322).
The Tickeron Seasonality Score of (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
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a manufacturer of integrated circuits for semiconductors
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