KLAC short squeeze

Discussion in 'Trading' started by Winston, Oct 4, 2002.

  1. Winston


    What happened to KLAC this p.m., was that a short squeeze run up of 1+ pt? It had a nice break down this a.m., then congestion (covered short here) then the run up. QLGC, AMAT, BRCM all stayed down as did the naz and sox.

    My thoughts are shorts covering before the weekend. Any thoughts or insight appreciated. I noticed there are many KLAC traders here and perhaps we could start a dialouge re: trading it.
    Not looking for anyone's secrets, or any BS hype a la Yahoo message board.
  2. Hi Winston,

    Note: I'm not a stock trader. I trade the Eminis.

    Were you actually watching the charts on KLAC, QLGC, AMAT and BRCM between 2:30pm - 4pm est?

    QLGC, AMAT and BRCM did not stay down as you hinted during that time span when KLAC had popped nicely.

    This is what you missed: At 2:32pm est the NQ Eminis put in a Higher Low via the 1min chart.

    At 2:32pm est KLAC @ 26.80, QLCG @ 21.21, AMAT @ 11.41, BRCM @ 10.18 and Nasdaq Composite @ 1139.20

    By 3pm est...all have moved up nicely. Therefore, your comment that all stayed down is incorrect.

    At 3:00pm est KLAC @ 27.22, QLGC @ 21.75, AMAT @ 11.57, BRCM @ 10.48 and Nasdaq Composite @ 1155.86

    Note: ALL OF THEM closed lower by 4pm est...lower than their 3pm est numbers.

    Simply, based on your comments that KLAC may have had a Short squeeze...based on the numbers my charts show...all of them may have had a Short squeeze if that's what you call a short squeeze in KLAC...although their daily charts reveals no short squeeze.

    I prefer the daily chart analysis in trade situations like this.

    Also...when you say "short covering before the weekend"...do you mean by NEXT WEEKEND?

    because this weekend has already arrived after the market closed today :)

    My thoughts...trade what you see and not what you think.

    Also...I agree with you about the Yahoo BS mentality. There are some new posters here at ET that recently started posting here about their stock trades...taking victories for the winners and hiding (not mentioning) the losers or wrong analysis...their behavior is very similar to the Yahoo and Raging Bull posting crap.

    Stay away from those bunch and they're easily to spot here at ET...Gold and the gang.

    P.S. Eventhough I'm a Eminis trader...I still monitor key stocks and some misc. ones in the S&P and Nasdaq.

  3. Winston


    NihabaAshi thanks for the reply. You're correct, those stocks did bounce w/KLAC & naz but they also closed at or below their LOD. The naz closed .03% above its LOD and KLAC closed .026% above its LOD pretty much imitating the naz. My question is what buying is going on here at the bounce? Certainly not bargain hunters. Is it the MM's going along w/the naz or short covering? At 13:45 the naz was down 40 pts, at this area it was over-extended in regards to its avg trading range, and this is where it bounced. Did folks realize this and begin covering or buying expecting a bounce, thus causing a bounce w/their collective activity?

    I'm not trying to predict, just understand what's happening here.
    As traders we're supposed to react to the market and that's what I try to do but I'd also like to understand the what and whys. Appreciate it. :)
  4. Winston


    Bush is giving a speech before the nation Mon evening 8 p.m. EST to make his case for war w/Saddam. Will this keep market lower or is this already priced in?
    I would think it's a foreknown conclusion that we're taking him out w/or w/o the UN so this should already be factored in. Be interesting to see how market reacts.
  5. TG


    One of my core stocks so I'll pass along what my chart said. ADX, my key indicator, at extreme level about 1 PM. Extreme ADX and wide differential DI- and DI+. When they subsided a few green candles pointed to a trend reversal which resulted in a nice long play(for a short term trade). Works every time on my core stocks. I used to wonder why things happened when I began trading but have found that to be a waste of time. Now I just go with what this indicator tells me and I'm very happy with the results.