ST trading:
The 40-50 trading range, which AMAT was in for almost a full year, is totally gone. Forget about it, we won't be seeing it again for a long, long time.
The chart looks like a textbook example of broken support. We gapped down through 40, quickly plunged to much lower lows. The next step is a rebound, to retest 40 from below. Or maybe the top of the new range won't be that high. No way to tell, yet. Then, another slide, retesting and perhaps taking out recent lows. Eventually, a new lower trading range will be established (25-35?). And we may be in this lower range for 6-9 months. Short or short-term is still the way to make money in AMAT (this is a recording). It's still too early to go back to LTB&H.
I bought (long, that is) in 2.5-point increments, from 35 down to 27.5. I will sell in 2.5-point increments, beginning at 35, and be completely out at 40. If we don't reach those prices in the next couple of months, I will lower them. Once I've sold, I will rebuy my long positions, beginning a few points above whatever the yearly low is. At some point next year, I will quit selling all my stock on rallies, and hold onto my lowest-cost lots. Too early for that, yet. |
