ST trading:
covered my AMAT short near the close at 50.75. Held 3 weeks, lost 2 points. I closed out all my shorts and puts at the close today (for small losses or gains), because:
1. I'm hearing a lot of people saying: "MU says memory chip inventories are getting cleared, so maybe all chip inventories are getting cleared, so maybe supply/demand is coming back into balance, so maybe we've seen the bottom in all the chip markets, and it's safe now to buy semis and semi-equips and all the other techs, because the bottom is in." Lots of "maybes" there, but we may be at the start of a bear rally that takes the SOX to 750 (the January top).
2. a bunch of charts in the techs look like they are breaking resistance, which indicates an upmove (short-term) is beginning. TXN closing above 36 the last 2 days, AMAT closing above 50, others.
I intend on re-shorting (or buying puts) on AMAT, TXN, NTAP, when the rally looks to be fading, and/or when I get a clearer picture about what's going on. |
