Round Number Theory Role:

I have been for quite some time a round number theory guy. Many names will find a ceiling or floor at these figures, and some numbers are rounder than others. I have found that 10 is one as money managers disdain single-digit stocks and many times are forbidden from owning them. The 20 number as a security sheds teenager status or the 90 figure which is important as stocks that trade through the level often travel to par and beyond. The 100 number is one of the most influential ones and we have seen names like JBL rebound powerfully off it recently. Below is a high profile semi name that has been lagging somewhat in AMD and it too found a bounce there last week. It is a glaring 20% off most recent 52-week highs while NVDA is just 1% off its own annual peak, but the very round par number could offer good risk/reward heading into year-end. Notice former resistance there in March and May possibly has turned into support.

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