Eye on TXN Earnings Release
Good Tuesday Morning, MPTraders! October 22, 2024-- Pre-Market Update: Earnings rev up, with many eyeballs focused on TXN (Texas Instruments) after last week's ASML debacle (see my TXN chart analysis below)...
Meanwhile, billionaire Hedge Fund Manager emeritus Paul Tudor Jones is on CNBC right now, painting a fait accompli fiscal disaster approaching regardless of which presidential candidate is elected in two weeks. Of course, this is not the first time he or other big-picture pundits (Druckenmiller comes immediately to mind) have espoused a doom-and-gloom outlook, but hey, maybe "we" are at THE inflection point when the markets "force" investors to pay the piper after years and years of financial and monetary mismanagement and distortion. My recent bond YIELD analysis (type YIELD into the Search Window at the top of the page) argues unequivocally that longer-term benchmark rates are in the grasp of a bull market in YIELD and Bear Market in Price (since March 2020).
The only problem is timing. (LOL—isn't it always!). By that, I mean every time this issue of the deficit and debt out of control creeps into the headlines, some "creative" Government program (scheme) to buy more time and kick the can down the proverbial road emerges. Will this time be any different? Does Paul Tudor Jones know something that we don't, such as that the long road of financial imprudence and shenanigans has come to a dead end?
In any case, on to more immediate concerns: TXN earning after today's close. My attached Daily chart shows that as we speak, TXN is down in pre-market trading beneath 194.00, placing the price structure just below the April-October up trendline that cuts across the price axis in the vicinity of 194.10.
TXN must produce quarter results that triggers a positive reaction that preserves the multi-month up trendline to avert weakness that points to a test of its up-sloping 200 DMA, now at 186.00, and if violated, downward to challenge the longer-term trendline from the October 2023 pivot low that cuts across the price axis in the vicinity of 182.00...
In that TXN is the major producer of analog (non-AI) chips that are used by a wide variety of customers, any blemish in its earnings report or its guidance into year-end, especially on the demand side, will send shockwaves through the non-AI semiconductor names... (continued below the TXN chart)...
Elsewhere this AM, SLV (Silver ETF) remains bid, now at 31.51, making new rally highs as we speak (see my attached 4-Hour Chart below). SLV is up over 2% in pre-market trading while GLD is up 0.75%, which means the Gold/Silver Ratio is contracting and is below 80 to 1 again, on the descent, and heading for a challenge of key ratio support lodged from 77 to 1 down to 75 to 1 (see my attached Ratio Chart below)...A breach of 75 to 1 will trigger a projection to 65 to 1 thereafter...