Laird,
Glad to know that you did the spread AMAT/LRCX. I see a very powerful year-end rally in the make, it will lift all boats including LRCX. I will wait for after about a 30% up, they both flaten out(stop ascending) for 2 weeks, then enter the spread.
Please let me know when you have other good pairs. I think WCOM had grown too much in the past, could be profit taking and growth slow down due to bigger size.
Another pair I am evaluating is YHOO/LCOS. I saw a magazine did some evaluations on search engines, they rated YHOO very good and LCOS very poor among 7-8 vendors. They both rely on advertising revenue, I expect YHOO continue to grow due to number 1 status, LCOS will lose market share to others. Again I am going to wait for LCOS to go up and stop, then short. I entered a long position on YHOO today because it broke a new high with 5M shares short position.
Happy hedging!
Steve |
