I figure I'd toss out some TA on CPQ for you to enjoy.
Of course I don't claim to know anything about TA, but thought
I would post some charts of CPQ and what appears to me to be
the future of the stock.
Thought I would take a look at some very long graphs:
Long term channel: $20 to $80
Long term logarithmic chart of CPQ 1984-97:
tscn.com
5-year channel: $28 to $80
5-year chart of CPQ: 1993-97
tscn.com
The channels are the regions where the stock seems to hang out
if you draw parallel lines around those long, long graphs. My
numbers are just to suggest where the stock would have to stay
in order not to break its long term trends.
In any case, it looks to me that CPQ is at the high end of its
long term trading band.
In terms of short term trends, the stocks has obviously broken
the rise that took it above $70:
tscn.com
That last chart has the look of a stock about to make a violent
move in one direction or another. I count three down turns and
three up turns since dropping below $70. At the very least, I
think CPQ will return to below $60 per share. But if it goes
below that, it sure looks like a $28 or $30 stock.
Sure you could say that CPQ was around $70 two months ago,
but it was also below $60 four months ago, and below $40 six
months ago. I suggest that the below $60 prices are providing
a lot more attraction than the above $70 prices right now.
So I think that CPQ is a good short right now. And given that
the stock does look like its about to explode, probably a good
option candidate. Accordingly, I'm holding the April 60 puts on
it, CPQPL.
Thanking you in advance for your kind advice to sell everything
in order to make money going long in CPQ...
-- Carl
P.S., All: Thanks in advance for the kind advice to leave this
topic alone in order to protect my sanity. My sanity has been
gone for years, and I've done fine without it, so pelase don't
worry too much about it. |
