LT,
CCI - I think a rebound is due soon, may have started yesterday. Since its decline from the peak all the way down to fill the gap, and it was filled was week, the stock can get a bounce from here. I don't expect them to go straight down at least not anytime soon. To go further down, CCI would have to close below 144, then 140 before people are going to come out and short CCI further, kind of like NKE's $43 and $40. CCI's long stochastics is now near or below 20% and a crossover may occur if we have two more days of higher high. Its BB channel has also narrow and will provide further support at the $145 level. Therefore, I look for CCI to bounce up rather than continue down in the near future.
If you have made money shorting CCI, I would cover and move the money to pick another bank or tech stock that has not corrected as much. The market may deteriarate as you say, but after Wednesday and Thursday if the CPI and PPI come out good as expected the bond will rally and so will the bank stocks. I think the risk for holding CCI is either dead money or see your gain evaporated short term (1-2 weeks). The odd is against you at the moment.
As to MU, I just expect it to swing to $28 and I'll cover my Put. I don't go for the homerun anymore. |
