RtS, With respect to your thoughts about the SOX and SMH moving higher in the short term, I can go along with that scenario. If we go back to the action of the SOX last week, the index gained 3 percent. The semi-equips were a drag on the Group, AMAT((0), KLAC(0), NVLS(-2), and TER(1). The 4 top performers were, LSI(11), BRCM(9), TSM(9), and MU(9).
Message 19084712
Focusing in on MU, B. Schaeffer had this to say about MU which was reported by PRNewswire:
Schaeffer's Option Activity Watch:
1. Micron Technology (NYSE: MU) has added about 15 percent since I first
highlighted the bullish case for this stock on May 29. And the current
sentiment picture could spell more gains. That's because many continue to bet
against its strength. Short interest added 37 percent over the most recent
reporting period, rocketing to a new all-time high of 63 million shares. It
would take short sellers more than five days to cover these positions based on
MU's average daily trading volume. That type of buying strength could result
in another jaunt higher. The stock was recently featured in a major financial
weekly, which cited its recent strength as a sign to take profits. This
followed a previous story from April 7 that encouraged the same thing on the
heels of a nine-percent gain in MU. Those who listened to this advice missed
out on approximately 44 percent in profits. This article further illustrates
the low expectations Wall Street has for MU -- expectations that continue to
be beat. Zacks reports that nine of the 16 analysts who cover the stock rate
it a "hold" and another rates it a "sell." Future upgrades could bode well.
Now for a concern. We could see resistance at 15, the site of peak call open
interest in the July series. On the other hand, a move above this level could
spark a final unraveling of all this pessimism -- pushing MU to new heights.
prnewswire.com
I am sure there are other examples as well of possibilities for near term gains.
Don |
