I want semiconductor stocks, specifically those with relative strength. FSL qualifies. I'll buy it at today's open for the 3 Stocks on Fire Portfolio.
Yesterday we've had a minor pullback after I bought the higher open, nothing to be worried about.
The technical target of that descending channel breakout is at a new all time high, and if this happens I don't see the stock's advance stopping there.
But that's looking too much into the future, for now I'll hold FSL.
The last two consolidation days were made with low volume. Nobody is selling on declines. Just a matter of time for another white marubozu to be developed, perhaps as soon as today.
Considering the new 2005 high the Nasdaq 100 made on Friday the only thing to do is to continue holding this leading semiconductor company.
QuoteThe last two consolidation days were made with low volume. Nobody is selling on declines. Just a matter of time for another white marubozu to be developed, perhaps as soon as today.
And it was today. It looks easy on a Bull Market, easy to be right. And it is easy. What is hard is to sit tight after being right. The temptation is high to take profits and look for other stocks, being very active. In the end, most of the times you'll see you would have done better sitting tight holding your initial purchases.
My business with FSL now is buy and hold.
I've taken out my technical target of FSL's chart. As I said my business with the stock is buy and hold now. I can't sell and try to buy on a reaction, I would probably lose my position and look for other stocks, possibly losing stocks. Bulls are winning on FSL, and I want them as friends.
FSL made a new all time high yesterday on a closing basis. I got a love and own a stock with this kind of behaviour.
FSL made a retest to the old resistance, now support of $25.99. That retest was successful and the stock climb back up again to a new all time high closing prices.
I will trade FSL more based on the general market dynamics than on the company's specifics. I'm not thinking of selling now, when we are just at the beginning of a big bullish move, I believe.
Just hold.
The company issued a press release: Freescale to present at the UBS Tenth Annual Global Communications Conference (http://www.marketwatch.com/tools/quotes/newsarticle.asp?dist=¶m=archive&siteid=mktw&guid=%7BFFA97B2A%2D075A%2D40F9%2DA538%2D52A4B6ED7C8A%7D)
FSL made another white candle to another all time high. I know it may be boring not having all that much action, but I should not, I can't, sell a stock that is giving me money day, after day, after day.
A speculator needs to be right, and then to have the patience to let the market reward the fact that he is right.
Yesterday was a day with no history for FSL, but today we have good news:
China Consumers to Enjoy Full Throttle Multimedia Entertainment on Portable Video Devices Powered by Freescale; First Domestic Portable Media Players Introduced by Leading Chinese Consumer Electronics Company (http://www.marketwatch.com/tools/quotes/newsarticle.asp?siteid=mktw&sid=1782047&guid=%7BB13A0D8F%2DB424%2D4A86%2DB1E4%2DE28627A00BAD%7D&symb=)
Just one more reason for FSL to continue its upward path.
Nothing new on FSL, the stock held pretty well yesterday in the face of the general market meltdown (well, mostly high beta stocks).
But Zacks.com today mentions FSL, and that's never good over the short term. I hope they guess it right this time. I will continue holding whatever happens today.
I didn't buy because of the breakout to new highs, but because of the ascending trend.
Trading Plan for FSL: Hold for as long as it is set to close above the 100 period TEMA indicator. Today that indicator will be standing at $24.82.
It looks like the correction is over for FSL. The stock traded below the $25.99 support level but it came back by the closing bell to close above support. The candlestick left was an hammer that suggests a short term reversal to a bullish trend.
I'll continue using the tema indicator for hold/sell decisions, that tema indicator for today stands at $24.94.
FSL didn't rally with the rest of the semiconductor group on Friday, probably because it is still digesting and consolidating it's recent bull move.
But I believe it is just a matter of time before it makes new highs again. There was a bullish forecast for the chip industry from the Semiconductor Industry Association:
Trade group predicts steady chip sales (http://www.marketwatch.com/news/story.asp?dist=¶m=archive&siteid=mktw&guid=%7B0694A794%2D5AF5%2D48D1%2DB2BF%2D8B720F720707%7D&garden=&minisite=)
The plan is to hold FSL for as long as it closes above the tema indicator plotted on the chart below. For today that indicator stands at $25.05.
I can't figure why, but I'm not able to plot the tema indicator on this computer on FSL's chart, but I think the value is about $25.16.
FSL is still bullish, for today I'll hold it, unless it is set to close below $25.16. Tomorrow we'll have the tema (triple exponential moving average) indicator again to guide us in hold/sell decisions.
Ok, I got the tema indicator now. Today it stands at $25.23. The plan is to hold FSL unless the stock is set to close below $25.23.
I think the stock spent the last 4 days consolidating its recent bull run, and soon it will be ready for another push. The SOX is also near the highs as you can see on the second chart below.
Quote from: David Randolph on November 23, 2005, 06:28:09 AM
Ok, I got the tema indicator now. Today it stands at $25.23. The plan is to hold FSL unless the stock is set to close below $25.23.
I think the stock spent the last 4 days consolidating its recent bull run, and soon it will be ready for another push. The SOX is also near the highs as you can see on the second chart below.
I'm not so sure about that push anymore, but I'll keep the plan of selling only if FSL is set to close below the tema indicator. For today that indicator stands at $25.30.
We got a small positive reaction on FSL at Friday's shortened session. I'll just keep the plan of holding for as long as the stock is set to close above the tema indicator. For today's session that indicator is standing at $25.37.
According to plan, FSL was sold yesterday just before the close at $25.05, for a negligible loss (-0.3%).
Time to move on.