<re: Daytrading AMAT> Pat, I'd tried daytrading AMAT for a couple of weeks using the direction of the SOX index as a guide. Worked out reasonably well - lowered my cost basis on daytraded shares by roughly 3 points - but I found it psychologically difficult to daytrade a portion of my overall long position, so I'd stopped.
For your experiment, though, I recommend paying attention to the SOX index movements. Starting last week, correlation between semi-equips and SOX became much weaker (I think that is good for semi-equips, since overall SOX trend is still down - peaks are becoming progressively lower: 314, 310, 305, 300 ..), so the direction of SOX is not a reliable indicator anymore, but I still recommend watching it.
If SOX goes up tomorrow morning, your transaction #5 will prove a very good one, otherwise, a better entry point is when SOX touches solid support at 280 - Just an opinion.
Good luck,
Y. |
