Yes, you're right, the WCOM and AMAT chart look a lot the same, the same bottoming pattern. Strictly going on chart patterns, both look safe to buy now.
But I think WCOM is safer than AMAT today (although I'm not buying either for the longterm yet), because I'm guessing (and it is just a guess, I could be wrong) that the bad news is in WCOM, but not yet in AMAT. I think the WCOM chart is flat, because the bad news is out, and in the stocks. Sentiment can't get much worse than it is now, for the telcos (but I thought that when WCOM was at 40). Sentiment, IMO, can definitely get worse for the semi-equips.
But, for CSCO, the chart looks much uglier than either WCOM or AMAT. No sign of even a short-term bottom. |
