As soon as this rally dies I'm taking KLAC short. I'm not going to chase the stock up on the long side, just waiting for it to come to me.
Hi Seenote, If you short early, why not short KLAC the second time at ~53.70. Just wondering. Good trading Cyberslam
The market is rallying. It gaps up, then stabilizes, then gaps up more. It is very erratic right now and impossible to read with any certainty. I'm not shorting into a rallying market. Unless the market stabilizes somewhat today might not be a good day to trade.
Some key stocks have been flat over the last few days. If this morning's rally can push them through the tops of their small trading ranges it would have very positive implications for not only today's trading action, but all of next week. (Look at DELL and SUNW) Of course, a break to a new low would confirm and extend the current downtrend.
Pull up a 30 minute 10 day candle chart. Draw a horizontal line at resistance on SUNW @ 7.44 and DELL @ 27.51. A minor advance up would greatly improve the outlook for both stocks. Notice how much room is left between the current price on SUNW and resistance. This usually signals a long opportunity for a swing. Now, this is only TA, fundamentally as I've stated before, I don't like SUNW right now. DELL looks to have more short term potential than SUNW.