Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Creative Labs (CREAF) -- Ignore unavailable to you. Want to Upgrade?

To: Dennis G. who wrote (5364)	11/5/1997 5:53:00 AM
From: Jon Tara	Respond to of 13925

Dennis, it's the right triangle - a very powerful chart pattern. However, on reflection, I'm not so sure... this is an EXPANDING right-triangle. Expanding triangles are generally not a good thing, and are evidence of a wild market "out of control". (Gee, that doesn't sound like any market we've been trading in lately, does it? :) ) In any case, the flat top of the triangle does indicate resistance, and strong resistance. Once that resistance is broken, the stock will typically fly. That resistance level may represent, for example, the ultimate price at which Chay and Ng are willing to part with all... [Off-topic] As to CMOS - after scanning oil stocks this morning (and picking GLM) I got a wild hare to look at semiconductor equipment after fretting about weakness in oils after a run (GLM was a good pick, for the day, but my 1-hour bar oil charts were all "crossing over" to the downside on my favorite signal). It was a contrarian thing - what was the weakest of the weak? Bingo - semi equipment. What I liked about the semi equipment stocks was that they were almost all still fully-depressed from the mini-crash - i.e. they had NOT recovered yet. And they were all "crossing over" to the upside. I just happened to notice AMAT taking off like a rocket, so decided to do a sympathy play, as stocks in this group often move in sync but with a delay. (Very handy!) CMOS is one of the real quality companies in the group, was still fully-depressed, and was rediculously cheap (still is). It had moved up fairly sharply on the day already, and had encountered a "flat" at 30 1/2, which is where I bought it. A broker rec in the morning (that I wasn't aware of) helped things along... When I saw it at 34 near the close, I decided that was good enough for a day. 3 1/2 points = 10%, or 20% on margin. Of course, I wish I had thrown everything at CMOS, now. :) I am not surprised by the size of the move. It is typical of this sector for stocks to make violent one-day moves one way or the other. When the sector is moving, you will see moves like this several days in a row.