CNXT - Sector: Technology --- Industry: Semiconductors

[ScottishTrader]

As various people on the boards have said at various times, oscillators like the RSI are useful indicators to determine reversals, but very often in a bullish trend, a stock's RSI will move above 70 and stay there, otherwise if it pulls back below 70 (often indicating a reversal) the reversal will be small, just a profit taking retracement, before the bullish trend continues.  If you want to use it to guage whether to enter or exit a stock, just be careful, because it could cause youto miss out on most of the gains.

AFter all, the trend is your friend

As for CNXT, we'll just wit and see, but have had 3 solid days now, and I wouldn't be surprised for mor over the next week.  The technical target for the breakout is around 3.00, but there's a huge gap above 2.50, which may just be begging to get filled.  Let's see how it goes...

[rurouni]

"oscillators like the RSI are useful indicators to determine reversals, but very often in a bullish trend, a stock's RSI will move above 70 and stay there, otherwise if it pulls back below 70 (often indicating a reversal) the reversal will be small, just a profit taking retracement, before the bullish trend continues." - ST

I have read some of posts here but haven't come up with one in regards to the RSI so I had to ask.  Thanks for your clear explanation ST.  Good luck with your trades.

[shawFund]

I am predicting that the short run is over and the market in November will be flat - ups and downs.

Because the last few days have big up, the next few days will see the market going down (I mean semi and nasdaq).

Just exited all my semi positions.

Let us see whether this is right.

Hot stocks: CKCM, EXPE, PCLN, IFIN, SYNA, RHAT, name a few.

[ScottishTrader]

you may be right ShawFund -= reading your posts, you often are.

Today's move by CNXT was quite disconcerting, after a very strong start, it gave away all of its gains and moved into the gap in the afternoon, resulting in a not very nice looking doji star - this could signal a short term reversal.  Any thoughts from others on whether to take profits now or hold on?  The breakout suggests it should go much higher.

Another thought - maybe today's action was Cramer's fault - initiating the old pump n dump 

[shawFund]

Possible bearish signal?

My total portfolio gained 10% last 3 days and am expecting another 7% gain based on after-hour price of EXPE.

I am glad I bought big on EXPE yesterday. Because PCLN gave a good report and I was expecting EXPE will follow.

SOX and NASDAQ index:

[rurouni]

GOOD NEWS!

Chairman of the Board and CEO Director Dwight Decker bought 154,879 shares at $2.16 on 11/02/05

http://xml.10kwizard.com/filing_raw.php?repo=tenk&ipage=3763114

http://www.secform4.com/insider/showhistory.php?symbol=cnxt

[AussieTrader]

Hey guys, I have CNXT as I like the risk reward play here. A look to the weekly chart shows CNXT spiked through then closed at $2.23 (so this is the highest close and intraday price in 12 months+).
So I am looking for the gap play to hopefully start to work out (see attached chart CNXT is sitting just below a 1day red and big gap which runs from $2.60 up to $4) I have a stop just above $2 in case of failure and will adjust that upwards if momentum continues.
I see no reason to sell yet, my stop will take care of that anyway.
Good Luck

[David Randolph]

Thanks for your comments 

On October 28th Cramer said:

«Regarding Conexant, Cramer would sell a little and let the rest run»

I never got this thing of «selling a little» when you think it's going up.

Yesterday he said: «Conexant (CNXT:Nasdaq - commentary - research - Cramer's Take): "I say Conexant is going to $2.50."»

I don't think all this has all that much effect on the stock. The man has great exposure (and I like him as an analyst), but I think people are intelligent and won't buy just because he says it's going to $2.5. If he could explain where he found those $0.40 in 2006 earnings per share it would be much more usefull.

More important than this is the fact that the Chairman and CEO of the company, Dwight Decker, bought 154,879 shares on Wednesday, price $2.16.

you may be right ShawFund -= reading your posts, you often are.

Today's move by CNXT was quite disconcerting, after a very strong start, it gave away all of its gains and moved into the gap in the afternoon, resulting in a not very nice looking doji star - this could signal a short term reversal. Any thoughts from others on whether to take profits now or hold on? The breakout suggests it should go much higher.

Another thought - maybe today's action was Cramer's fault - initiating the old pump n dump

Probably some players felt discouraged when they heard Cramer was pumping CNXT, because they feel the crowd is following the man and they need to bet against the crowd to make money. But I think this is just a very short term effect.

Concerning the candlestick that was left on the chart, I don't find it as bearish, because it was a breakaway gap, therefore it doesn't need to be filled. It may be filled, but the stock may also just open higher today and never look back.

Volume is very strong, the general market is going to new highs, CNXT has relative strength against its peers, I think it would be a crime to take profits here unless you're a super fast trader (don't forget the CEO bought at $2.16, probably it won't go below that level), but I can be wrong.

Good luck to all, I'll keep my shares.

[Melf Elf]

Today's move by CNXT was quite disconcerting, after a very strong start, it gave away all of its gains and moved into the gap in the afternoon, resulting in a not very nice looking doji star - this could signal a short term reversal.  Any thoughts from others on whether to take profits now or hold on?  The breakout suggests it should go much higher.

Scotsman,

After my experience with shorting the July 21 SNDK upside breakout on an Inverted Hangman  (I covered for a loss two days later on the print above the July 21 high), I'd lean toward giving the breakaway gap a chance, and do something like Aussie Trader suggested:

I have a stop just above $2 in case of failure and will adjust that upwards if momentum continues. I see no reason to sell yet, my stop will take care of that anyway.

[ScottishTrader]

True.

Well, it's sitting at 2.26 in the PM, so I like that for now, it was more my concern of seeing profits slip away as I have on others recently, and wanting to be sharp and catch the short term reversal if it was coming. 

My feeling is also that CNXT has a lot further to run, esp. with that gap sitting up there.  It knows it wants to be filled - go on

Good trading all

[ScottishTrader]

Melf Elf,

I hope you reversed your short and bought into SNDK - that chart is just awe inspiring.  We need some more of those ones

[Melf Elf]

Melf Elf,

I hope you reversed your short and bought into SNDK - that chart is just awe inspiring.  We need some more of those ones

Scotsman,

Great observation, and no, I didn't reverse and go long.   

Normally, I wouldn't even consider shorting a breakaway gap like that, but during the summer, as you well know, we had so many false breakouts,  I decided to take a chance on shorting that Inverted Hangman on July 21 with a tight stop above the day's high. 

That certainly wasn't my best conceived trade, but instead of reversing and going long which would have been a great play, as you suggested, I covered the short and then smacked myself in the head a few times for shorting a breakaway gap, regardless of how many false breakouts we had had during the summer.   That simply wasn't a good percentage play at all.

That shows what a waste of time it is, castigating yourself for making a mistake.  Pay attention, and correct it.  Get long SNDK, ya dummy!

Duh-h-h...let me find that Embarrassed Face on the toolbar... 

[setravis]

Everything is Beautiful.....          "After Hours (RT-ECN): 2.34  0.02 (0.86%)"

Support @ $2.21...2.07...2.01
MACD is Bullish
Stochastic is Bullish

Recent CandleStick Analysis
Very Bearish
Nov-03-2005 Bearish Doji Star 

Technicals
Most Actives

Last Price Quote is:
21.25%above 13-day EMA
27.75%above 50-day EMA
RS Rating: 92 

Fundamentals
Key Data:
Market Cap (M): $899.48 
P/E Ratio: NA 
PEG Ratio: 2.90244 
Next Earnings: 01/25/2006
Last Analyst Rating: Buy

[agatto2]

Setravis Awsome pick again 
I have noticed that you are constant on an good pick roll, so im looking for a little schooling here, what do you do , or what is your process for finding these guys. I do a lot of research but cannot seem to get my swing constant. Any help would be greatly appreciated. tonyg

[setravis]

Setravis Awsome pick again
I have noticed that you are constant on an good pick roll, so im looking for a little schooling here, what do you do , or what is your process for finding these guys. I do a lot of research but cannot seem to get my swing constant. Any help would be greatly appreciated. tonyg

I look at a large amount of stock charts everyday.A bullish MACD is very important to me.
I think I go to sleep counting candlesticks. 
I also try to follow the list below taken from the pros.

Fundamental Analysis:
( The Books )

Look for a trend from one quarter to the next, going back as far as three years. Also, look at management comments and future expectations to get an estimate of where the company could be going. (Management often make guidance comments in their financial releases).

Cash per share
Earnings per share
Long term debt
Revenues
Revenues per share
Book value
Competitive advantages
Share buy-back plans
News and press releases
Financial ratios
Competition analysis
Market share (current and realistic growth potential)

Technical Analysis:
( The Charts )

Not all  stocks, present technical patterns. It is in some that a pattern appears. Do not 'force' yourself to find one if it is not obviously evident. Also, do not incorporate TA into your research if you do not understand it.

Look for buying opportunities with the TA patterns , as opposed to learning whether or not the stock is a good investment. Rank the shares in order of which you feel is in a good buying opportunity, and make a note of the price or range you think would be best to acquire the shares at.

Try to identify the following TA patterns. If a pattern is not present, or you are unable to identify one, make a note to yourself.

Dip
Collapse
Temporary spike
Permanent spike
Support level
Resistance level
General range
Current trend
Trend reversal
Topping out
Bottoming out
Consolidation
Volume