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Technology Stocks : Applied Micro Circuits Corp (AMCC) -- Ignore unavailable to you. Want to Upgrade?

To: FR1 who wrote (1635)	10/16/2001 6:45:27 PM
From: techanalyst1	Read Replies (1) \| Respond to of 1805

I want to make myself clear on AMCC: I like the company. I like the management. I like their breadth of products. I think they are well positioned to be a leader. I wouldn't buy it at this valuation. Amcc tends to sell off after earnings are out. This time the reaction will most likely depend on how many shorts are in it. As far as other stocks go: I see more downside risk in many stocks than upside potential due to high valuations, overbought technicals and rising prices on declining volume, so I am not buying anything right now. I've been selling covered calls and closing out open call options. I'm not adding any new ones either. If stocks continue to rise like they have been on declining volume, I'll look to open a few selective short positions with tight stops and otm calls as protection. I think most stocks will enter trading ranges. The upside will be capped by valuation. As far as opwv: When a stock gaps down like opwv did on heavy volume, it USUALLY will try to move back up to the gap and USUALLY will fail to close it. The usual pattern is to base for a long while or head lower. If it cannot retake the gap, there is likely something fundamentally wrong with the company, whether we know it or not. I'll look at it after earnings when I can hear what management has to say. The valuation seems to be ok, but the stock is saying something is amiss. TA