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Politics : Formerly About Advanced Micro Devices -- Ignore unavailable to you. Want to Upgrade?

To: TimF who wrote (149858)	8/17/2002 3:45:25 PM
From: tejek	Read Replies (1) \| Respond to of 1570334

Tim, note I have linked to an AMD CS chart. You will see that the stochastic graph below the chart indicates AMD is overbought. While its in that condition, its not likely to move up further but rather, more likely, it will move down or move sideways for a while....a week, maybe two. What has happened is that its broken out of its trading channel, the space between the two downtrend lines I have drawn.....definitely a bullish sign. In addition, you can see its ready to cross the center line on the MACD graph.....note the green marking below its current position.....again bullish. However, because it took a lot of buying power to get to that point it has to rest and exchange some of its weaker shareholders with stronger ones. Its also critical what the Dow, Naz and the Sox do in the next few days; the Naz and the Dow are short term overbought and the Sox is quickly approaching that state. The Sox broke its long term down trend line on Friday........very bullish. To make a long story short, the market is setting up for a rally. However, just at the point where it would be ready to take off, its needs to stop and rest because of all the energy it took to break through downtrend lines, trading channels and resistance, and to put in a short term bottom. So I think we will sort of stall and churn here for a while, before making a bigger move up or down. Given that scenario, I don't know what to tell you what you should do re covered calls because I still haven't learned options. ;~(( And of course, with all TA there are no guarantees! The market can be logical but it also can be irrational, and TA can't psych out the irrational moments. ted clearstation.etrade.com