>''There seems to be very little support for this stock under 65.''
I think we are to interpret that CBOE quote as "if we get to 64 1/2, where we were having so much trouble getting through the past couple of days, that's the best place to short the hell out of it, and that's what I'd better do!"
I'm always suspicious of any quote from one of those CBOE guys. In this case:
- The price they quote is 59 1/2 at 12:02 pm (gosh look how Micron dumped today!), but they wrote the story two hours after the close. Could be a deadline thing, though.
- We are right on the 50-DMA. I was surprised to see us slice right through it and keep going this morning. But we returned to it by the close. Blow through and re-test the MA in two days, for a juicy trend reverse on the third day? I don't know if it's too quick, but it seems too easy.
- There was a HUGE volume spike at the very bottom of the second trip down to 59 -- over 400K shares in less than nine minutes. That was the second most noticable figure on the graph today. Second only to the giant volume not just on the way down but at the bottom of the first V at 58 this morning. That's the definition of a bottom.
- Robbers & Stealers tout-fest is next week. Michael Burke thinks they'll be beating the drums for MU and AMAT techstocks.com
(and, of course, unloading today's booty).
I think 62 1/2 (50-DMA) to 64 1/2 (resistance), more or less, is the only real region of stability, and that it will hold tomorrow. Above that is The Twilight Zone, but there's plenty of stock bought at 58-59 available for sale to keep us from going beyond it.
65, +/- 1/4 tomorrow. |
