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Technology Stocks : VLSI Technology - Waiting for good news from NASDAQ !!! -- Ignore unavailable to you. Want to Upgrade?

To: Maui Jim who wrote (3714)	6/24/1998 11:49:00 PM
From: DanZ	Read Replies (2) \| Respond to of 6565

Thanks Jim. I know that Symbian is a software standard but it seems to me that this standard, along with bluetooth, will grow the market for wireless products. I was just thinking that it would indirectly affect VLSI if the standard results in a bigger market. Here's my current chart read. Short term (Daily chart): VLSI has resistance on the daily chart between 20 and 21. This corresponds to the intraday highs on May 1 through May 13 just before the stock broke down to it's 52 week low. A consolidation is likely as those who bought before the breakdown sell into the strength to get their money back and others take profits. The money flow index is now over 80 and this is typically coincident with short term tops. The stock is still trading outside of the upper daily bollinger band, and at a minimum, a sideways consolidation will be indicated if it closes back inside the bands. The upper band is currently rising through about 19. The daily stochastic is also approaching an overbought level. The SOX has resistance at its upper daily bollinger band near 266, about 7 points (2.7%) higher, and this coincides closely with the resistance in VLSI. Intermediate term (Weekly Chart): VLSI has support at about 18 and a target of 23. I think the weekly chart has bottomed and the stock will work its way higher over the intermediate term. Ditto for the SOX. Since I'm a short term trader, I'm taking a defensive position at this time. Outside of a buyout (and I'm starting to think that the rumor will fade), I think the short term upside will be limited to 20 to 21, followed by a consolidation and then another rally. I sold the Jan 20 calls that I bought yesterday for a 7/16 gain and also sold 1/3 of my position between 19 3/4 and 19 5/8. I also sold a small amount on the open today at 18 3/4 that I bought yesterday at 17 15/16. Finally, I sold calls against the remaining half of my position. I'm looking to cover the short calls and build my position back up again if the stock pulls back or if the technical indicators come back to a more neutral condition after a consolidation. Good luck to everybody. PS to Tom, Linda, or other AIM folks. I'm just curious where your sell points are. Does AIM have you taking any money off the table? Thanks.