Snap filling the gap as bitcoin technicals turn south: Getting Technical
On today's 'Getting Technical', Yahoo Finance's Jared Blikre is joined by Irusha Peiris
Portfolio Manager at O'Neil Global Advisors to break down the lastest stock market action.
Video transcript
ZACK GUZMAN: Got an active session right now, just seeing the Dow continue to decline. But Bitcoin and other cryptos continuing their shellacking as well as a bit of a peeling off here in social media stocks. For more on that, let's get technical. I want to bring on Yahoo Finance's chart master Jared Blikre, who has a special guest standing by. Jared.
JARED BLIKRE: That's right. I'm very happy to bring here Irusha Peiris. He is a portfolio manager at O'Neil Global Advisors. Always love to get the O'Neil people on because you guys understand technicals and fundamentals. We're going to be mainly talking about the getting technicals today. So I know the first stocks you're looking at here is Snap. I'm looking at a chart up 250% over the last year, but it's been consolidating for a few months. So what's the play right now if there is one now that it's reported earnings?
IRUSHA PEIRIS: Yeah, right now, the play is to watch it closely. It reported earnings this morning. It gapped up on earnings. But the thing is, is to see how it reacts to those earnings. And so, the fact that it gapped up and started to fill that gap is not necessarily a great sign for Snap and also a lot of the technology stocks. They've been out of favor for all of 2021. And so this is one of the key stocks I was watching to see, OK, maybe are we going to have a potential shift back to the technology stocks, a rotation there? And so we're still watching very closely. It's forming [INAUDIBLE] with handle. And the pivot for this, or essentially, the buy point for it, is around 65.86. And so, let's give it some time. Let's let the volatility decrease. And maybe in the next few weeks, this could get some power to start to emerge again.
JARED BLIKRE: All right, well, I want to talk chip stocks. Now we got Skyworks. I know that's on your radar. Lots of news with Intel today. What do you make of this particular chip stock?
IRUSHA PEIRIS: Yeah, and Skyworks, they bought the automotive department from-- I'm drawing a blank on the company. But--
JARED BLIKRE: That's fine.
IRUSHA PEIRIS: --they brought-- they're in the 5G space. They're so well-positioned for the 5G area. Silicon Labs, that's the company. So now that's going to give exposure for Skyworks in the self-driving cars. Now they're-- out of a lot of the technology stocks, they're showing some better relative strength here. They've been trending up. They've been forming a consolidation base. Their point-- their buy point is around 195 or so. And it gapped up today, too. It's coming back in. A lot of times, when these stocks gap up, especially on a news event, I want to really hold back and wait a few days to see how it treats those gaps.
This one is definitely filling. Earnings gaps sometimes are a little bit different. I may actually buy a little bit if it's acting well. But for a gap on news, I'm going to hold back, wait. But this is one that's been on my radar for a while, just because of the fundamental reasons and also the relative strength within the larger semiconductor group and also the technology sector.
JARED BLIKRE: I got you. And we'd be remiss if we didn't talk some Bitcoin, dipping below $50,000. It's actually trading with a 47,000 handle. What do you make of the technicals on this? And don't hurt my feelings.
IRUSHA PEIRIS: Well, Bitcoin is hurting me because I do have some Bitcoin. But Bitcoin has gone on such a great run since the fall. It got through some key resistance levels around the 11,000 area. And it's been a rocket ship all the way up to, like, 63,000. So it's entitled to take a break here. And so, it could come in, and it could come in a little bit more. Everyone's been so optimistic about Bitcoin. Everyone's been talking about Bitcoin, bragging about Bitcoin, that, a lot of times, the market, there's going to come a point where it's going to test everyone and really see who are the true holders, who are the true believers in any stock, or in this case, a crypto. So you're going to have to just give it some time here.
JARED BLIKRE: I didn't mean to interrupt, but I'm a true believer, too. But that's a very long term play. And I do hold a little bit as well. So thank you for joining us. Irusha Peiris, portfolio manager at O'Neil Global Advisors. Sending it back to you guys.
AKIKO FUJITA: Thanks for that, Jared, and our thanks to Irusha as well.
