Here are 5 semis for aggressive traders
It happens that
way each and every day. It’s the same old story. A
new day dawns. It is new each and every day. New opportunities. New chances.
Do you think it is possible to capitalize on each and every chance that comes
down the pike? Of course not. If the odds are favorable and the chances that
come your way are “A†quality then step up to the plate for a swing. Most of
the trades made these days are of the swing variety. The buy-and-hold approach
is suitable if the instrument is providing consistent performance and not a
drag on the whole. The focus is on individual instruments that appear to be
winning hands at this moment in time. Today I will get into two stocks that I
have had for quite a time. The play is working well and the positions were
pyramided over a stretch of time. One stock is new to the current blend and is
trending into a powerful advance. And two issues that I will buy today if the
price points are right. The last two issues are being eyed for purchase.
Watching carefully for the moment to pounce. I have trimmed my shorts and will
speak about the short or dark side later in the day or another time. Today the
focus will be on 5 stocks:
Intersil Corporation
(
ISIL |
Quote |
Chart |
News |
PowerRating) 21.43
This stock broke
out to the higher zone yesterday as it crossed 21.10 on a close. Each
instrument is alive with its own drama. It’s in the story and the story is
found on its chart. I invite you to take a peak at the drama that is expressed
by the price movement of this stock and let the chart tell the tale. Warner
Wolf the sports reporter used to say after leading in a story “lets go to the
video tapeâ€. The chart is better then a thousand words. It tells exactly where
the stock is relative to its trading cycle. ISIL is in an advance. That is
absolutely clear. The move made yesterday in average volume hints at higher
price points in months to come. It pays to watch the key inflection points for
signs of a plateau. Place the trading stop at 18.49.
Cypress Semiconductor
(
CY |
Quote |
Chart |
News |
PowerRating) 16.24
I know I just
wrote about ISIL and CY the other day. I am well aware of that fact. I write
about them again because they both offer a different look right now. They both
have broke to higher near term price points and are now firmly in the midst of
a satisfying advance. Satisfying if you are involved. I am involved in CY.
Have been for quite sometime. It is a long-term investment. It is a long term
investment till it either gets way over bought or it breaks below key
inflection points. I will keep a stock as long as it works to the benefit of
the stake at risk. It’s just all about that. That is all it is about. I invest
in CY to grow the stake at risk. CY, only because it is in a nice advance and
yesterday’s action hints at higher price zones down the road. The stock ought
to be bought down to 15.50. It is not a stock that moves straight up. Examine
the chart carefully and notice the pattern of trade. The stock will ultimately
challenge the 20-22 zones. That is where it will likely stall. That is the
major trouble spot along the way. It is way out in the distance. There is
plenty of room to play in this stock. The chance of another 25% upside over
the next several months is enticing. The momentum is favorable. Money flows
decent. Fundamentals sound. It’s a go on all cylinders. It is merely in the
advancing stage of its cycle. Place the stop at 13.49 for a swing.
M-Systems Flash Disk Pioneers Ltd.
(
FLSH |
Quote |
Chart |
News |
PowerRating) 28.37
I bought this
stock all day yesterday. I bought it in stages after it broke above 27.75. It
broke to a new 52 week high yesterday. It did so in fine fashion. Better then
average volume accompanied the trade. Trading to new highs in heavy trade is a
positive indicator. It confirms the original breakout that occurred at the end
of July. Take a look at the chart and notice the breakout that happened at the
end of July. It gapped open. The month of August was used to fill the gap. The
test passed and now it is to higher price points as the move toward the peak
at 46.35 in June of 2000 is pursued. It is relentlessly pursued since March of
2003 where it bottomed at 6 and change. FLSH performed well over that time
with an intermediate slump along the way that rattled a few. The technical
underpinnings of this stock are strong right now. It is in a solid advance.
Its up 43% this year and 127% over the last year. Better late then never. I am
not exactly in this at the outset. It is the current pace of trade that hints
toward higher price zones. Watch the key inflection points and zero in should
the trade begin to fail. In this market it is better to use the 50-day moving
average. Better safe then sorry. The 50-day line is 23.95. Traders place the
stop at 24.99.
Altria
(
MO |
Quote |
Chart |
News |
PowerRating) 70.69
It’s a momentum
play. Believe it. It is a momentum play. It pays a dividend that amounts to a
yearly yield of 4.5%. It has to cross 71.10 and then I buy it. I buy it
crossing 71.10. It is not there yet. The odds favor it getting there. The DOW
has been a drag but MO has been a leader. I am looking at it right now and am
in a position to accept the advance for what it is and get aboard the quiet
drama displayed by MO. Big caps in general have lagged and dragged over the
last year and change. This stock has performed well and ought to be given the
bullish benefit of the doubt. It’s up almost 50% year over year. That is quite
a solid move yet the stock is not extended. The 200-day moving average is just
10%. The signs point to higher price points. Place the stop under the 200-day
line and keep this one for a while.
Advanced Micro Devices
(
AMD |
Quote |
Chart |
News |
PowerRating) 21.52
The semiconductor
sector of the stock market is leading right now. I am already involved in
(
MRVL |
Quote |
Chart |
News |
PowerRating),
(
CY |
Quote |
Chart |
News |
PowerRating),
(
NVDA |
Quote |
Chart |
News |
PowerRating),
(
NSM |
Quote |
Chart |
News |
PowerRating)
(
ONNN |
Quote |
Chart |
News |
PowerRating) and others. I am tech heavy right now. Now is the time to
buy the tech sector and live through some minor pain in September and early
October. The pain is lessoned having the flexibility to trim and reduce and
let go if necessary. Right now. At this point in time it is a good idea to get
involved in the semi conductor group. The mid-cap market is the best to
involve oneself. The risk is manageable. Good money management says to get
involved right now as it broke above 21.30 on a close. That is a key price
point and a signal to buy more shares. I am going to take a position in the
stock this morning. If it holds 21.30 then it builds off the move made
yesterday and continues its climb toward the most recent long-term peak and
that is 34.95 made in December 2004. The stock is down 2% this year and up
over 95% in the last 52 weeks. A major selloff occurred in January and the
stock has been fighting back ever since. It is on the way in a solid advance
and creeping up on the old high made late last year. Place the trading stop at
19.99.
Jack S. Rothstein
Rothstein Investment Advisory Services, Inc.
3600 Chain
Bridge Road, Suite 200
Fairfax VA
22030
Phone
888-343-4825 — Fax 703-385-7232
www.jrmoney.com — www.wealthcast.com
Jack Rothstein is the President of Rothstein
Investment Advisory Services, Inc. and is a 20-year veteran stock trader and a
money manager.
Mr. Rothstein also writes Wealthcast, a monthly newsletter about the technical
behavior of the markets. He has been quoted on Bloomberg, CNNFn, the Dick
Davis Digest and the Dow Jones Newswire. Since 1993, Mr. Rothstein also hosted
WealthCast, a radio show in the Washington DC area covering the stock market.
Â