RMBS - Sector: Technology---Industry: Semiconductor- Memory Chips

[J.Livermore]

Well Guys... this is not a sure trade yet... but:

- We have a strong white candle with volume and a breakout on friday
- Things are very oversold on the mid-term
- The last relative lows on the short term are consecutive higher...

RMBS could be preparing a take off to higher levels... the potencial is nice  

I'll probably gonna buy tomorrow  

[David Randolph]

Rambus was on my 5 stocks on fire short list. I like the chart too.

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[David Randolph]

Rambus Inc (RMBS). The Group's principal activities are to design, develop, license and market high-speed chip-connection technologies to enhance the performance and cost-effectiveness of computers, consumer electronics, communications systems and networking products.

Let us check the technical pattern:



What do we have here?

- A bearish trendline broken on the upside
- A new ascending line supporting the price
- Crossing 50 day moving average

What we get?

We get a nice balance between supply and demand for the stock to appreciate. It's that simple. I'm buying the open on Rambus.

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[David Randolph]

RMBS

[David Randolph]

... and higher lows for RMBS in the short term, so I'm still holding the stock.

[David Randolph]

... trading range, but the trend is bullish, and the higher probability goes for the trend to continue.

[David Randolph]

... usually these slight upward movements get momentum on their tail. I'm holding on to RMBS for the time being.

[David Randolph]

Pattern didn't change on RMBS. Again it left a considerable upper shadow. Bulls are afraid of holding but that's not necessarily a bad thing.

[David Randolph]

After all those upper shadows were trying to say something, but I didn't listen. Getting a bit tired of these falling angels from the bubble, they seem to still have a lot of bagholders in them. So much work to rise a bit and with a little blow we get this enormous sell off.

I'm still undecided if I should give more room to RMBS, for example to wait for it to close below that ascending trendline to have a selling confirmation. Not.

Selling tomorrow's open, can't stand these losers.

[dhiraj19]

Dave,
Are you sure you want to sell it tomorrow? Please see the link attached for today's trading....

http://thomson.finance.lycos.com/lycos/iwatch/cgi-bin/iw_ticker?ticker=rmbs

[David Randolph]

dhiraj19, explain this to me like I'm 6 years old. Why would the information on the link you provided change my attitude toward RMBS?

Thanks a lot, I really don't have a clue, still learning ... I just, for a principle, sell the losers and keep the winners. If this strategy gives me 100% a year I'll be the greatest trader that ever lived  hahaha, just kidding 

[dhiraj19]

Dave,

I appreciate your wisdom on all the picks. I follow you... Rambus is not my pick but I know its fundamentally strong for long term. Its company for future ( gaming, etc). Nothing linked to short term.

Main point:

I often use that website link for buy/sell ration of various shares and who are buying and selling. The chart shows the buy and sell ratio. If the chart has more blue upticks, there are more buys. Broader and darker blue uptick arrows mean more heavy buy. More reds you have, more sells. They have small hyperlinks for interpretation.

In pie charts of the page, you can see the participants of the above behaviour. If you see today's Pfizer chart "pfe" in that page, you'll see 40% trading (mostly sell) was by institutions. ( News -> Medical fraud). Red downticks across the board.

I have bought CGTK on your recommendation but have seen the corresponding charts on the website. It has always shown blue on those price levels, hence your theory is correct. Today, some Institution also bought cgtk shares. 

I dont know how it can benefit but I surely like that website for my easier interpretation.

Anyways, I'll be waiting for your next pick, as I have some cash and am waiting for your recomendation to buy and follow..

[David Randolph]

Thanks for the explanation dhiraj19. I've seen that kind of thought on many boards, with people watching what the institutional traders are doing and following it.

«Institutions were the buyers». «There was an institutional seller on the stock».

I have this question: since when the institutions are always right, more, since when did the institutions on average made money? They make money on bull markets, they lose it on bear markets. They underperform the market by all means. Why should I follow their steps?

I don't understand that thing of more buys than sales. Every time there's a buy order filled there was a sell order to meet it and vice-versa, so shares bought=shares sold=volume. Maybe some indicator ...

Again, thanks for the explanation, just questioning those popular methods ...

[David Randolph]

Sold RMBS @$14.96

[setravis]

Moving in the pre-market.....

RAMBUS INC (NasdaqNM:RMBS) Delayed quote data 

Pre-Market (RT-ECN): 18.50  2.31 (+14.27%).........Volume @....138,104