Chas - you asked why I am long. If I trade on gut feelings, I normally
lose. If I trade according to the computer and TA, the odds are
normally in my favor. This past week, I did the following with MU:
Monday, I sold MU long position at 34 1/8, (bot Fri at 33 7/16)
Monday, I shorted MU at 34 1/2.
Tuesday, I covered the shorts at 31 7/16.
Wednesday, I went long at 33 5/8 and sold later at 33 7/8.
Computer was neutral on MU until late Friday, so traded in other stocks.
Friday, just before the close, the computer was indicating MU oversold,
but not a buy signal yet, and I chose to gamble on a tech bounce
Monday, so went long MU at 30 11/16.
My computer indicators have MU signals oscillating about every 1-2
days, whereas, DavidG is flipping directions faster and more often
than I do.
I believe very firmly in the channel stuff, and that MU is in a good
downward channel, so I remain biased to the downside. In fact,
I may buy puts on Monday to ride for the next couple of weeks while
I trade the stock back and forth. It would hedge my long positions.
I will trade 1/2- 2/3 positions on the long side, and full positions on
the short side as long as MU remains in the downward channel.
.That's more than you probably wanted to know, but that is why
I am long! <gg>
Patrick |
