Thursday, December 14, 2006

What A difference A Day Makes (AMD update)

A few days ago I was looking to short AMD if it could break the lows of the consolidation which it did for about a second before staging a huge reversal.. Today AMD executives outlined a new class of microprocessors and spoke of transforming the company from a PC supplier into a new breed of consumer-electronics processing outfit.
If you look at the above chart you can see AMD closed above the 50 day moving average on heavy volume and range expansion.. AMD is not something you want to be short given today's action.. Right now the stock is trading in the gap.. If it can close above the gap which is in the $24 range, I'd want to play this stock from the long side and buy the dips..Today was a powerful day!

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Cal said...

Kevin, those AMD CALLS were up 700% today, whew! What a ride that would have been to trade up 7 fold. Anyway, I took your ORACLE chart and did my own research and took the trade, I bought the Dec $17.50 calls, and they're up a nice 50%. Thanks, I owe you one.
Your Friend,

desi_jhawk said...

Kevin, I just found your blog couple of days back. Your analysis is excellent.

Ok, now to AMD, I bought AMD few weeks back and ended up selling it yesterday when it dropped below 20, and today it is now over 23 :-(

I was thinking that since it is options expiration they will pin AMD to 20 since 22.50 was becoming more unrealistic.

La specular said...

I couldn't believe that I missed it. Should have buy some calls like CalTrader did.

Kevin said...

Nice going Cal with Oracle...Sorry Desi about AMD, I actually shorted it with small shares but got out when I saw the stock rising on good volume.. When a stock comes out with news like that, there is no way of knowing that in advance unless you know somebody...all we can do is react..


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