AI
Thursday, February 26, 2004 12:32:01 PM
SEAC (close to target 18.50) another 'hit' in our "Earnings Plays Gone Wild" series. while techs pull back (KLIC a neat daytrade, nothing more) Totally predictable except now the support resistance changed a bit. SEAC much more "earnings momentum" behind it. SEAC is in the second day of "Upside Earnings RUN"
You will note in the chart we DO NOT BUY THE DIP, but look for the (COT - Change of Trend and confirmation) like we did with SMH. Buying the dip in SEAC (a favorite, though) would ahve resulted in being underwater from the 20 area to roughly 16.35 (decidedly uncool) simlar to KLIC which was shorted in the 17.20 area and bought back at the lows instead of averaging down after EPS. SEAC will likely have more upside momentum (at least less pullbacks intraday) and was picked up the same reason KLIC was, a buy after a big drop at the first (COT change of trend) which was confirmed.
Don't BUY THE DIP buy the COT (change of trend) that is the basic tenet of succesful technical analysis. Buying the dips lead to more "scalps" simply because you have to duck the landmines constantly buying against the prevailing trend. Buying rather the "change of trend" leads to either the LONG TERM DAYTRADE (holding through many reversal time periods) and even swing plays. I never scalp or encourage our traders to scalp, we like to hold long or short for quite a while.
You will note in the chart we DO NOT BUY THE DIP, but look for the (COT - Change of Trend and confirmation) like we did with SMH. Buying the dip in SEAC (a favorite, though) would ahve resulted in being underwater from the 20 area to roughly 16.35 (decidedly uncool) simlar to KLIC which was shorted in the 17.20 area and bought back at the lows instead of averaging down after EPS. SEAC will likely have more upside momentum (at least less pullbacks intraday) and was picked up the same reason KLIC was, a buy after a big drop at the first (COT change of trend) which was confirmed.
Don't BUY THE DIP buy the COT (change of trend) that is the basic tenet of succesful technical analysis. Buying the dips lead to more "scalps" simply because you have to duck the landmines constantly buying against the prevailing trend. Buying rather the "change of trend" leads to either the LONG TERM DAYTRADE (holding through many reversal time periods) and even swing plays. I never scalp or encourage our traders to scalp, we like to hold long or short for quite a while.
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