To confirm and clarify my post of July 17 (#21924), my expectation was a successful break through 32 resistance. Despite recent earnings pessimism, which I have expressed IMHO as fully discounted into next year, the recovery scenario remains intact, despite the apparent "emotional" arguments made on this thread and "respected" analysts read: (Kurlak, First Call 7/30). Mr. JTechkid, albeit with a trader perspective, you seem the "lone ranger" to capture this argument. And thanks kid for the ideas, by the way.
To explain "the danger, this happens quickly" in my post #21924 was my opining that a market breakout and recovery scenario would be so completely unanticipated by the market that share appreciation could escalate quite rapidly, particularly due to large short interest positions increasing in all semi-conductor related shares. "Day trading can be hazardous to your health" was my warning that short sales will magnify the amplitude of a cyclical rebound. Historically they have made valuation measures non-applicable.
AMAT and SOX remain in constructive recovery trend as of today's close. I utilize MACD and RSI analysis. see below
Forget opinions and "noise" of emotion. The entire semi group, including equipment manufacturers, is poised for huge upside before year end. Now, I wonder what Mr. Kurlak's market makers are doing with all of those shares sold to them...???
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