Judy, the story of AMAT has long been in the stock, IMHO. there are a number of forces driving the markets in the near term, I believe, the fact that we had a very strong decline and short term oscillators became oversold together with the "liquidity" theme are acting as positive influences in the short term. This is balanced by an increasingly precarious situation in the far east. The plays I proposed are for one, maybe two weeks only (and only in the high techs), I may even be out tomorrow, since one of my serious turnips is flashing warnings signals again, a very bad sign when these reflex rallies are barely one to to days in tenure. In any event, AMAT is still the undisputed leader in its field, and if we are going to smack it down without breaking the lows in the next minimelt, the smart shorters will have to be given an opportunity to do that somewhat higher than here. A false recovery high to 37, seems rational to me, particularly that the news is out and liquidity will drive the stock more than past well known earnings in the next few days.
Zeev |
