adbe long

Discussion in 'Trading' started by heilbronner, Jun 18, 2003.

  1. There is a nice gap down in adbe due to analyst downgrade action.

    Rules in strong markets:

    - buy downgrades, if company is overall Ok
    - buy gaps down
    - sit and wait
    - sell if gap closed.
  2. Donkell


    I agree 100%. It may stay down for a few days but it will go back up filling the gap. I read over the weekend that ADBE purposely was cautious in their prediction of next Q so as to beat it by quite a bit.

    I trade size and therefore have several thousand shares with a breakeven about half way back. If you notice Macr is hitting highs and it should only be a short time before adobe buyers get on board

    It appears no more than a typical upturning stock that pulls back and buyers move in. There is some wishful thinking on my part, of course, but ADBE is a buy anywhere under 33.00

  3. Of course there is that yet-to-be-filled gap at 28, which is conveniently located at the same level as the 200 day sma.

    And yesterday was an NR4/IB day which should provide an intraday opportunity also.
  4. look at monthly and weekly chart ADBE is in major down trend. It is on my short watch for a significant breakdown. Any rally is an opportunity to short. IMO
  5. Gap @ 28 possible, yes.

    Major downtrend in adbe, possible, but Adbe is not a favorite for me on the short side.

    They have a very conservative management, moderate P/E and lots of cash.

    Trading Adbe in and out since 5 years and made a lot with this stock.
  6. A moderate P/E? Wow, it sure does tell a tale of today's marketplace when a 37 P/e is considered moderate. I guess relative to the triple digit PE's of 3-5 years ago sure.

    It is a good trading stock though, and I agree it makes taking size worthwhile.
  7. Hey that NR4/IB trade worked out well today so far. Certainly one has a decent intraday profit opportunity. I'm outside with the kids so I didn't take it. We are getting ready for vacation and vacation trading is a no-no for daddy.

  8. Yes , moderate compared to average P/E of NQ. No, Adbe never had triple digit PE, but take a look at EBAY, Yhoo, EXPE, USAI....even now.

    Anyway good luck. It doesn't matter if you are long or short, it does matter that you make money.
  9. Gap already closed, sold @ 34.47, made more than 10% within 14 days.

    Something else: End of July usually tends to be lousy for stocks. Be aware. :D
  10. Donkell


    Since it did jump with the rest of tech yesterday I sold. Just in case it wants to follow more of a down trend which I expect this week.
    I made mine.
    #10     Jul 8, 2003