I've been watching a pattern develop while these days I am trading these wafer companies mostly intraday...very interesting, at least for me, to simultaneously track CNXT, TQNT, VTSS, RFMD (and as background indicators AMAT and SUNW). These four take turns leading and they all eventually mimic each other. They travel together in general, with VTSS generally seeming most stable.
Now please don't go comparing historical charts to see how right I am, this is merely my observation from watching blips 10 hours a day. Like yesterday it was almost impossible not to take CNXT - it had lagged behind the others percentagewise. Nice to see VTSS hit 50 again, CNXT 70 again, and of course RFMD is just getting used to its second wind now going to 70 rather easily at the close. I know people around here have been saying this for a while, but I've got to believe that the testing in the 60's is pretty much over. Today's table-pounding on the chips was certainly a nice boost also. AMAT finally getting their due which they should have gotten a few weeks ago on good earnings. As I've always said, screw earnings show me topline growth - the new creedo for the millennium....oops, I'm rambling!
I've gotten a bunch of my long-term type friends into RFMD and VTSS in the last couple of weeks and they've all come to the same conclusion after plenty of DD - this a promising little group with gorilla potential.
Altough I've recently closed my core position (I've closed all my core positions for personal reasons which are undoubtedly stupid), I've gone quite long RFMD every single time it dares to slip below 65, and every single time I've made a tidy profit, usually 2-3. This coming from a common lowlife daytrader should be a very very encouraging sign for any long term troops in the camp here. Alas, RFMD's current promiscuous personality will soon change as it matures. And I must admit to looking forward to seeing it mercilessly pound the shorters. We all know when this thing goes, it goes. And then the volume will come and the boys that think they have strong hands (you know, the INCA 100 ask that shows up all of a sudden when things are looking too promising) will have to step aside.
Sincerely- best holiday wishes and good luck with your investments (or trades...)!
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