To: Esteban who wrote (729 ) 11/23/1997 11:15:00 PM From: MonsieurGonzo Respond to
Esteban; RE:" MSFT INTC AMAT DELL QNTM CSCO "MSFT - Weekly Chart shows a solid white-body candlestick which broke the downward-sloping (trading range) trendline. Daily Chart shows a high-angle UpTrend which broke out of the aforementioned downward-sloping trendline, and ended in a near-Doji . We would expect a "technical correction" or pull-back or pausing if MSFT is going to continue moving upward. However any sudden thrust towards 140, and I sell into this strength before the stock quickly fades and makes a shooting star up there. Quite tempting to dump my LEAPS right here, +2 from bottom of trading range, and may do so.INTC - Weekly Chart shows a a near-Doji candlestick, at the end of a slow, but steady UpTrend with higher bottoms but heavy resistance at 80~81. Daily Chart shows a struggle, characterized by congestion at 79~81, ending in a bearish cover on Friday. Will hold my LEAPS, as the downside on INTC is what, 70? At 70, I sell PUTs.AMAT - Weekly Chart shows another Hammer cancelling candlestick, as AMAT has been in a trading range between 30 and 40 for 5 weeks now. The previous cancellation (as opposed to "confirmation"), was a Doji , this week's is a Shooting Star . Daily Chart shows bullish volume but, the covering candlestick on Friday portends weakness at the top of AMAT's trading range. LEAPS were dumped when AMAT passed 37-1/2, +2. Considering a short sale in this sector; ETEC ? Which one is weakest ??DELL - (NOTE: earnings after close on Monday) - weekly Chart shows a gap-up Shooting Star cancelling a nice Doji Hammer :-( Daily Chart shows a turbulent week of resistance (not unlike INTC), using a gap-up Window as support , ending in a bearish engulfing candle on Friday: in sympathy with earnings shortfall pre-announcement from MUEI. DELL has formidable resistance at 87. With earnings due shortly, not a good time to take a new position. Fundamentals over-ride any T/A reading for now; unfortunately my LEAPS were purchased when DELL was in low 90's, so call me an investor, folks. CPQ is highly correlated with DELL.QNTM - Weekly Chart shows a solid DownTrend with support 25~26, so far . Daily Chart shows a narrowing, triangle-shaped trading range with heavy volume in this, the last DD stock to not pre-announce a serious earnings shortfall, ending in a cloudy, bearish candle on friday. I was caught by the WDC "news" pre-announcement 3 weeks ago, and my QNQEU QNTM MAY 37-1/2 CALLS lost half their value. I bought more when QNTM hit 26 to "average down" and improve my position (somewhat). Below 20, I sell QNTM PUTs.CSCO - Weekly Chart shows a spinning, bullish candlestick at the top of CSCO's trading range, with surprisingly diminishing volume. Daily Chart shows an acute UpTrend ending in a hanging candlestick not unlike the last time CSCO tested resistance at the top of its trading range. This sector as a whole is not nearly as strong as CSCO: LU has been weakening, and others (COMS ASND BAY) have already tanked. I have no position in CSCO, but if I did, I would write covered calls here as insurance, if not inclined to simply cash out and take profits.comments welcome
