Palantir (PLTR) Positioned To Be Dominant Provider Of Generative A.I.

Monday we're ready to kick it off big week big three three stocks three charts three trades Rick Dukat is with us on these charts and they're gonna take us to the trades Jessica Inskip is with us good to see you both thank you for being here so Jessica before we get to your trades just wanted to get a feel of how you're feeling about the market this week you know as the FED meeting has really kicked off and we came into this week with a Fed blackout period and we had a lot of that employment data and then Additionally the CPI data that we're awaiting I want to know how the fed's interpreting that and I really think it's just this understanding if we're going to skip or we're going to pause but even more so how they're interpreting that data if they do feel that inflation is still actually sticky that's the more important part to me as far as the broader market and seeing that that rally keep going right understood so are you talking about Google alphabet or adobe here as your first one uh whichever one you want you prepared for I wrote a and I didn't know which one it was I'll take the heat let's do a Dopey we'll do a joke okay don't be it is go for it all right so Adobe Creative boom um for subscription-based models and I think this is really important as we think is the overall kind of somatic schemes of the market a piece of that is the gig economy that we see emerging from a thematic View and Adobe last week actually released Adobe beta and I don't know if that's something you've experienced I actually do use Premiere Pro and it's it's very Advanced and difficult to use and Adobe beta is taking that together and making it so much easier and some simple and they're mirroring this model that I noticed that Microsoft did with chat gbt in order to get that broader adoption which is B to C and subscription based models so we certainly saw some positive revenue and I think that's going to continue to translate over into positive Revenue as they really amplify their marketing and gather on where that b2c and I really think generative AI is is going to enhance creative productivity it's not going to replace the need for Creative profession it's certainly going to be an enhancement it's in its early stages but I think there is so much potential that's out there and Adobe from the creative aspect is going to be a leader within that Realm yeah there's been a lot of positive comments surrounding Adobe of late uh Rick ducat good to see you tell us about your thoughts on the chart of adobe today please yeah this is an interesting one here and the thing that stuck out to me first of all with this chart is that looking at our volume profile you can see there's some very clear areas of ranges in this in this uh trading environment here we can see that there's these big spikes and volume profile that show the areas of heavy trading we can see around here we had consolidation area move upward consolidation area move upward another brief consolidation point and then we we're retreated back within this range Consolidated again then we took off we really had a big strong move upward here up about 38 since the start of this rally right here and our moving averages that we typically follow not so much help anymore because price has outpaced it so far and these moving averages they're lagging indicators they rely on best prices to develop their numerical values here so what do we do when something is making new highs and we're trying to figure out where it might stop to the upside we can use standard deviation channels here we draw our blue line here our line of best fit based on closing prices our linear regression line as it's known then we take standard deviations above and below it we can see right now that we're between plus two and plus three standard deviations to the upside here stocks typically stay within plus two minus two range so it's noteworthy that we're above that point here we're also above our old yearly highs near 451. so look for a potential stopping point right around this plus three Channel near 480 and some potential support near 440 based on our plus two channel overall though things are still looking strong momentum is still cruising to the upside our size in the overbought area so not really seeing much signs of a Slowdown quite yet Yeah you mentioned 480 that you're watching that and right now we're at 464. Jessica I mean what do you think of that breakout and the RSI supporting this move final thoughts here on Adobe but I love it when technical thesis and fundamentals match up I think that's a great great perspective yeah without a doubt all right now let's get to alphabet Google you have that one today it's at 122.71 um your thoughts there yep so I have been doing some deep digging into Ai and how that's going to really fit into the overall broader market and Google or alphabet really came to surface and I thought it was very interesting and I'm going to call it the ultimate AI beneficiary that we haven't really seen come to fruition so initially the big risk that we thought was for alphabet was their market share of search volume being compromised or or threatened by Microsoft and the chat gbt implementation into Bing however there are lots of volumes that we can pull and it still seems that that is not a threat as of yet May data has shown that market share for Google has even grown being as flat and they still have that larger market share now Bard is not the only product of AI produced by Google um they have a lot of large language model models AI models that are required that utilize Google in a lot of touch points in fact they tend to be almost like Nvidia is that biggest chipped that is required Google has other processes that are required so if you don't have access to Nvidia in that bigger chip that LM AI models are require you could have a cloud-based service so Google would fall into that category or Amazon that have those gpus that are required and the major hurdle of implementing these type of AI models is the hurdle or the the training really is the hurdle and so you well the way that you would overcome that is by an AI accelerator and there's one that Google developed that is completely proprietary to them and then they also have software required to work in language models one called tensorflow and so therefore they they have the most access points really in regard to to AI from implementation training your models and then that software required to work with those language models which is a broader exposure and I think we'll see that translate into earnings in the long run so I'm excited to see how this one plays out if I could launch the confetti right now I would what was that one called the language model one you called it something flow tensorflow okay okay because that I mean I think that's really interesting first of all I think it should be noted Jessica that you were the first one to mention chat GPT on this show last year um and you've been really focused on AI and when we think of Google we're always focused on Bard and now we need to focus here um on the language model you know these AI accelerators so it's a different play um than maybe most people thought of and thank you for bringing us and bringing our attention to this Rick ducat your thoughts on the chart well we've been flying high but maybe starting to take a bit of a breather here that's kind of the overall take on this chart here and we can see that we have been traveling upward mostly contained within these two white dashed lines within an upward Channel type of price activity here up about 37 percent since we established these lows at the start of the rally so then we have kind of just cruised upward here price action took us all the way through our three major moving averages that we follow yellow 21 day orange 63 day purple 252-day exponential moving averages and it also took us above our old yearly highs near 123. now since then it looked like we were in a bit of a consolidation phase until we squeezed out some new highs near the 130 level but then we were promptly rewarded with a three and a half percent or 3.8 percent drop uh in one day there that took us back to those yearly highs near 123. we can see that there's a volume node here suggesting some price acceptance people are are showing some conviction at these elevated levels here but right now we're kind of stuck with the area that we were in previously at those old highs so old support becomes new resistance and vice versa so now this new this resistance level is becoming support here so look for price to perhaps stabilize around this level before making another leg up if you have a bullish Outlook or retreating perhaps a little bit here momentum suggests as well that things are a little bit stuck in the mud right now we dropped out of that overbought area our retreating now toward the middle here that 50 line is is an area to watch here now if momentum starts to weaken further if we drop down below that 50 midline and we drop below our yellow 21 day EMA which is currently near 120 160 or so that could be a recipe for further downside there so keep an eye out for that to happen there that would be our support point to watch resistance our old highs once again near the 130 level would be the area to overcome and look I mean this is one of the names that's been moving higher higher how many names are above their 200 day or 52-week highs and Jessica I know you follow a lot of these Tech and AI sort of related names and that's what's really driving anything everything and anything tell me your final thoughts here before we get to palantir yeah I completely agree I'm the NASDAQ 100 is really leading the market but if we think about the broader Market in the S P 500 it's market cap weighted so if the bigger bigger companies and the biggest companies are within that Tech sector that represents a large portion of the businesses so therefore it's warranted and I think lack of broader participation perhaps is something that we need to be cognizant of as far as the health of the broader Market but if we're looking at the S P 500 and the market from the size of companies it's okay if it's led by Tech right yeah okay up next palantir we're going to be talking about this later as well in the show so I'm glad we're featuring it here and giving us a setup tell me a little bit about your thoughts on this one yeah absolutely there has certainly been a lot of talk about palantir and it always has these analyst upgrades while I'm thinking of them um which is fine so they're positioned to be a dominant provider within generative Ai and there's also when you're thinking about the providers of AI or that they're going to offer solutions to those broader companies so there's a heightened need to upgrade military and intelligence capabilities and this presents substantial potential for volunteer they have an advantage they have supporting architecture the recent Bank of America report actually stated that they're about five years ahead of the closest company in terms of generative Ai and that's something that's warranted their research analysts are absolutely fantastic um and their their launch of their artificial intelligence platform it's generate increased and inbound interest and what we've learned going through this AI hype that not only is it the the value of your product it's absolutely marketing of that product that is absolutely helpful so when I see something that says increased inbound interest then that help that it should translate positively over into earnings you can have the best product but if you don't have broader adoption we need Revenue so that's something that I think is something to watch and certainly warrants that demonstrated power of generated by Ai and this subsequent annualist upgrades that we've been receiving all right pltr Rick uh your thoughts on the chart the most interesting chart of the day I think hands down here because we can see once again based on our volume profile much of the trading has taken place in this name around the Eight dollar Mark for the past year price was really concentrated around that level wasn't really making too big of a move beyond the ten dollar Mark there but with last earnings we can see right here just a rocketing upward here uh taking us more than more than doubling in terms of our our price here since we had the start of this move upward a very steep narrow trend line going upward along those lows and once again using our standard deviation channels we can assess how extreme this move is relative to its own recent history that's what standard deviation is really telling us if price is at a fair value level which is our blue linear regression line here or if it's at a stretched extreme value which is where we are right now here and if you recall on our first stock I said stocks just anecdotally observing they tend to stay between plus 2 and -2 standard deviations well today we're finding palantir between plus three and plus four standard deviations so a really notable move in terms of its strength and intensity here now once again we can see we've got this volume node forming here suggesting price acceptance look for our uh two standard deviation lines our plus three and plus four lines to provide support and resistance here near about 1450 and 1630 respectively here one other thing to note RSI is very strong here so momentum is still in the overbought area we're not really seeing any kind of give back here despite that price has been consolidating a little bit here kind of speaks to the volatility that we've seen these candles their Shadows have been very long suggesting aggressive selling up near those Highs but we're still kind of grinding upward here so definitely an interesting chart uh you know beware of something that's making a strong move it can keep going and if you're trying to do a mean reversion in play it can be a rough road if things don't go your way you go just would you like to make a projection on what the FED may or may not do oh sounds like they're going to skip however when we check the CME tool it seems to change constantly so I'm it really really more dependent on what they say I think that's the most important aspect of this meeting this week so we'll listen to the language and we'll look into that CPI at least a little bit thank you so much Jessica Inskip of options play and Rick ducat our own Rick ducat there on the charts thank you both for the big three today

Channel: Schwab Network

Views: 32,272

Keywords: Retail

Id: Cz7sB4OFV5k

Length: 15min 19sec (919 seconds)

Published: Mon Jun 12 2023