Be Careful About Chasing AMD Aggressively After They Report Earnings

The stock is overbought and very expensive after doubling in just 3 months

• The stock market saw a very nice bounce yesterday, but it needs to see a lot more volume to convince us that last week’s decline is already over.

• Advanced Micro Devices (AMD) is expected to report good earnings after the close. However, the stock has doubled in just three months…and it has become overbought and extremely expensive. So, even though it could easily see one more push higher, investors should be careful about chasing it aggressively over the near-term.