While I think the momentum may carry this rally farther, I am still looking to short it, sometime soon.
However, it is hard not to belly-up to the bull bar and drink from the gold chalice. Basically, who doesn’t love a good rally?
With those things in mind, I think it is good to keep an eye on what is working. One chart uncovered in my evening screens was RHT. I think this is a beautiful breakout. The volume coming into it has been incredible and has enabled the stock to break above a three-month-long flat base. Even though this is not a system trade, I’m not sure that I can refuse the allure of this particular chart.
The only problem I see is whether to buy it now as it approaches overbought, or wait (hope?) for a pullback.
Nice, that’s when your tested hourly 13 MA strategy (matching the daily 2 MA) picks the entry for the kicking of the arzeezz.
Market got de-ranged, and we got two months with no opposition to trend, everyone in sync with the music before has been taking knocks and just fuels the fire. It’d be too surreal to watch another month or more of buy and hold, or sell and hold, work
3-month RHT with a few trend lines drawn:
http://www.screencast.com/users/jwh082742/folders/Jing/media/f4a73ccf-5ded-4611-8a1f-9b36e180ad12
I wonder which would be the best “support” line– the long-term trade line at 16.5, the upward channel @ 17.25, the 50 day, or the 200 day.
Maybe the answer is: “Yes.”
I remain dubious regarding RedHat.
I think a lot of folks are ‘pre buying’ in expectation that Citi knows what they’re talking about with regards to RedHat being a “tempting acquisition target“.
First, what does Citi know about anything these days? Seriously
Second, Who’s got the cash to buy them?
Lastly, the tech sector still has way too many ‘murderholes’ for me to consider anything good for aught but shorting.
Just saying…
Wood, you need to start reading news more often, yet another bullish setup that may be catching a bid. not a good short. if IBM does acquire Sun then Red Hat will not stay independent for long as Oracle will surely go after them.
Born, I’m confused. I’m bullish on RHT.
But you’re right. I don’t read much news that is not on a macro-economic scale.
ah… my mistake, i read too fast:
“While I think the momentum may carry this rally farther, I am still looking to short it, sometime soon.”
i thought you wanted to short RHT specifically and not the overall market rally.
Sometimes with those it is good to buy a piece as it runs and then another if it pulls back. If the train is rolling why not make sure you at least have one foot in the door.
Only two more days until the April Fool’s Day Massacre.