I have decades of experience studying, writing about, and trading based on technical analysis. There are times, however, that I will take a trade just because the chart seems goofy. Micron (MU) is a good example. I have, in the past couple of weeks, tilted at this windmill repeatedly, only to be disappointed each time. It illustrates how shorting something just because it’s Too Damned High relies almost totally on luck. Yes, one day it will turn, and turn very hard, but I’d rather stop guessing.
Most semiconductors were strong all through the night (hey, Cole Porter should write a song!) but soon after the opening bell. they took a tumble. Here is SMH:
This steady up/sudden drop situation is not relegated to just the semi sector. As I am typing these words, the /NQ has gone from being up way in the triple digits to being – –gasp – in the red!
The small caps continue to be a source of strength. Again, as I’m typing these words, it is the only equity future still (barely) in the green. What’s mildly interesting is the relationship of that red line (the prior peak in 2021) to present price action.
When /RTY dipped earlier this morning, it stopped short of piercing that line. It appears to represent support for the moment.
I’m having a flat day so far, although one nice victory is Albermarle (ALB) which has finally snapped lower. I remain in 20 short positions and 7 put positions spread out across 25 symbols.
As for Ms. Machado, I’d say she probably just made an even worse trade than my MU short.
