Teri, you said it right:---one stock that I'm comfortable to buy at any price is AMAT!...I know, the stock when down, will always rise up and come back. The Traders know that and they really Love to trade the stock!...Based on my observations, this is how short-term traders play the AMAT game:---
The present Playfield is the trading range from 43 to 55. It's divided into 3 parts:--- At the South side, from 43 to 47 is the Bulls territory, where they buy, dip or bottom-fish. At the center or median is the 49th Parallel where the DMZ ( from 47 to 51 ) or neutral area is located. At the North side (from 51 to 55) is the Bears' territory--- where they sell....Before the last earnings report, the Parallel was at the 46th, before that--- the 38th, 29th and 25th...Less than 3 weeks from now, AMAT is going to report its latest earnings---who knows, the parallel might be moved to the 55th or 60th!...Anyway, at present, we know where we are at. We can do some short-term trading ourselves to reduce our total investment costs while remaining bullish long-term. Whether we like it or not, Traders will always Love to trade AMAT!... |
