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Strategies & Market Trends : John Pitera's Market Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: nspolar who wrote (8669)	1/16/2008 11:50:48 PM
From: nspolar	Respond to of 33421

The Soxx ... and AMAT! What about em? Brief and to the point. It is easy to be bearish these days, so it seems. The politicos tell us we must be so. Charts like AMAT as well as the SOXX make me wonder. What do we have here? EW wise we have plotted a Big 1 to the top. The correction thus is of next highest degree possible. How long should such a [2] correction take? We think it should take a minimum of 100 % of the time it took for the [1]. AMAT is closing in on that. How much should it pull back? We think it should pull back a minimum of 61 % of the [1] AND that the whole 5th of [1] should be given back. Conditions are met. We should show a corrective structure, in this case a 535 still in progress. Conditions again appear to be met. The C of the [2], if that is what we have, is in its final stages. It is in a 'bounce up' now, and it did this right where it needed to. We are watching this in earnest, no positions yet. If a Big 3 is about to start we think AMAT will go deeper into the apex of the C triangle, before really breaking up. Keep watching is our recommendation. There is no great reward for jumping in here. If this stock is to move up it will likely head up towards the upper triangle line, then slowly dribble into the apex. We like what we see here so far. These stocks are hard to gauge by classical TA methods. They just do not often show much in the way of divergences (our opinion), but do rapid reversals and start a new trend.