Why I own these stocks and I’m looking buying more…
The market is down but I
am not. I am up close to 2% today because of the heavy concentration in
semiconductor stocks. I am long NSM, MRVL, NVDA, CMVT, ONNN and ISIL.
Other stocks like SIRI help greatly. The one very good short is EMC. It is a
good time to examine a few of the semiconductor stocks that are leading this
current market. There is one new long that I placed a toe in today and that is
GLW. So lets get into the examination of the current trend in a few of them.
National Semiconductor
(
NSM |
Quote |
Chart |
News |
PowerRating) 26.10
That is right. The stock currently trades above
26 having broke out of its short-term consolidation and reaching a new high
26.24 made earlier today. The stock is in a mighty advance right now and hints
toward higher price points. NSM is now up 45% this year and 118% year over year.
No sign of a top forming at all. The action displayed today is nothing short of
stunning considering the way the broader market currently trades. I intend to
actually add to the position only if the stock stays above 26 near the close.
Place the stop at 23.99.
Comverse Technology
(
CMVT |
Quote |
Chart |
News |
PowerRating) 26.58
This stock broke above points of resistance
earlier in the day before pulling back to trade at 26.58. That is where it
currently trades and really has to cross 26.70 or better at the close of trade
today for the bulls to get very serious about strengthening its hold over it.
The bulls control this stock and its better that you be long and certainly ought
to buy the shares on a close above 26.70. If you take a peak at a weekly chart
you will notice the headroom it has all the way up to 50. That is the reward
awaiting you should the choice to get involved long come to pass. The stock is
now in a solid advance that will get legs as it approaches 30. Stay long unless
lines of support are violated. The first line of support is its 50-day moving
average, which is 25.22. A break below 25 is cause to trim and possibly reduce
exposure. That is the way to play it. Use the 50-day line as the initial stop.
Punt if the 200-day line is violated. Buy more should it push toward and cross
30. That is a long way to go but remember that the level of volatility in CMVT
is high.
ON Semiconductor
(
ONNN |
Quote |
Chart |
News |
PowerRating) 5.87
I intend to buy more shares of ONNN when it
crosses 6. That is the intention I have and am currently involved with a decent
position. The intention is to pyramid the shares on a rise above 6 at the close
of business on any day. It is on the verge. It is worth watching. The stock is
in a satisfying advance right now with signs pointing toward higher price
points. This is not an opinion it is a fact. How do I know this? The chart tells
that to me. It is clear as a bell. It is worth owning ONNN crossing 6 on a
close. Place the stop at 4.19.
Corning
(
GLW |
Quote |
Chart |
News |
PowerRating)
20.89
The stock broke out today providing yet another
buy signal and this time I answered the call and stuck a big toe in its pond.
Pretty good action in the stock compelled the move. Now, the way to play it is
to buy more if in textbook fashion the stock pulls back near 20. That is the
perfect and lower risk price point to get involved and don’t forget to place the
stop at 18.50.
Sirius Satellite Radio
(
SIRI |
Quote |
Chart |
News |
PowerRating) 7.22
Yes the stock finally crossed 7 again and this
time in better then average although not heavy trade. I bought another increment
as it crossed 7.05. I am building a large position in the stock anticipating a
move toward the highs made earlier this year. The bet is that the stock
challenge the 10 zone late this year into early next year and a move to that
level from 5.80 where I ordinarily bought it back is good enough for me. I will
take that. I will. I intend to do just that. I intend to score a big win being
involved in SIRI. Still the investing stop is placed at 6.19.
EMC Corp.
(
EMC |
Quote |
Chart |
News |
PowerRating)
12.76
EMC is on the verge of collapse. It is drawing
down to its near term bottom and if it closes below 12.75 then I will short
still more shares and add to my already large short position in the stock and
large short position is helping out my portfolio greatly today. It is one of the
reasons I am trouncing the market thus far on this day. Incidentally the SOX is
up nicely today bucking the overall trend. If the SOX goes over 490 then hold on
to your hat cause it is likely to explode. Watch for that to happen and add to
semiconductor issues. As for EMC just place the stop above the 50 and 200 day
line which is now further way. The stock could drop to 11.
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.