DennisG., I'm watching CREAF's daily action with great interest. I studied the chart of CREAF recently superimposed with a simple 50-day Moving Average of the stock. We are still in a downward trend and have been for a few months;however CREAF's pattern is improving and we are of course now hovering right at the 50-day MA Line for the second time in a while.
The reason I am sticking around CREAF (beside the fact that I like their business fundamentally and Sim Wong Hoo as a Leader)is that CREAF's chart pattern looks similar to the other tech stocks' chart patterns I follow. And many of these stocks (not all!) have in the last few days broken through their 50-day MA trend lines on the upside for the first time since last summer, and then tacked on additional gains- i.e., stayed above the trend line.
So I intend to bet the rationale odds like a baseball manager and bet that CREAF breaks out on the upside too, if not in this test of its 50-day MA Line if not this time then soon, as CREAF is now making (IMO) a series of higher lows on its chart.
So if we bounce off of 20 and dip back toward the $17-18/share range, my guess is that the dip will be both shallow and brief- and then we'll rumble through the $20 resistance area....
And throw in a couple of fundamental "kickers" e.g., as a share buyback announced or production of Voodoo2 Chipset Graphics Cards, and zoom! We're gone!
As to equipment stocks, I am in SEMX currently. I have been watching our "old favorites" SMTL, NANO, AMAT, TER, UTEK, and KLAC, but they all disappeared north and left me in the dust. So I'll wait for the next downtrend in order to ride that freight train....
Sincerely,
Doug F.
PS- And Savoirman gave away one of my best investing "secrets" above and why CREAF is a good long-term stock- Becuase CREAF is a play "in the convergence of the PC and Consumers Electronics Markets"- a very, very important point he raised in terms of picking winning stocks! I am playing about four of thsoe "convergences" right now! |
