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 : Stock Swap -- Ignore unavailable to you. Want to Upgrade?

To: Robert F. Newton who wrote (12575)	3/5/1998 12:01:00 AM
From: Trader X	Read Replies (2) \| Respond to of 17305

We may finally get the results I've been looking for the past 3 weeks. And that is a sharp selloff in the likes of CYMI and AMAT, to be followed by an equally sharp rebound off the lows. Here's my reasoning for that outlook: chart2.bigcharts.com:80/chart?time=7&freq=1&uf=32&lf=1&type=4&style=3&size=3&maval=10&state=0&compidx=aaaaa&symb=cymi&ma=3&comp=&trans=0&r=chart&sid=17682&sec=c&xyz=56775968&s=23381 Notice the sharp Nov. lows to about 16-17 on the CYMI chart. So far we have perfect symetry in the chart, except for an equally sharp selloff on this side of the chart. We have a rise to 23 that matches the rebound high made in Nov after the sharp drop. This picture will be complete following a quick intra-day drop to perhaps 17. I think the close should be closer to 19. We see the same pattern in the CMOS chart: chart1.bigcharts.com:80/chart?time=7&freq=1&uf=32&lf=268435456&type=4&style=3&size=3&maval=10&state=0&compidx=aaaaa&symb=cmos&ma=3&comp=&trans=0&r=chart&sid=11409&sec=c&xyz=89685844&s=30882 A breakdown to 25-26 would match the Nov. low as on the CYMI chart. Likewise AMAT, a drop to 30 would match the Nov. lows: ff5.quote.com While reversals don't always make this sort of symetrical statement, they are very common, because the psychology that induces the chart pattern on the left side of the chart, repeats in reverse fashion on the right side. Right now, the bulls are timid and willing to take profits where presented, but in the middle of the bull phase, they are obnoxiously over-confident, and greed sets in to induce maxed out margin limits. -kh