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Technology Stocks : Applied Materials No-Politics Thread (AMAT) -- Ignore unavailable to you. Want to Upgrade?

To: Proud_Infidel who wrote (2164)	8/7/2002 8:05:17 PM
From: Gottfried	Respond to of 25522

BK, in a May column Ken Fisher said >Applied Materials (nasd: AMAT - news - people ) (24, AMAT) makes wafer fabrication equipment. I think it will be dog meat the rest of this year. The Street expects a big earnings rebound--and fast. Intel's falling price indicates just the reverse. But I might be wrong. So sell AMAT short, but control your risk. Now you are going to flip the QQQ trade around. Go long the QQQ in order to offset your short AMAT bet. The net position has you betting only on whether AMAT does better or worse than tech. There is risk in this bet, but again--it is a controlled risk.< forbes.com I wondered if following his advice would have made money. It would have made money if AMAT dropped more % than QQQ. Looking at the ratio, it looks like it would have worked. Starting in May AMAT began to underperform QQQ. stockcharts.com[w,a]daclniay[dc][pb12!b26][vc60][iUe12,26,9!La12,26,9!Lc20]&pref=G finance.yahoo.com Gottfried