Friday, May 3, 2013

Advanced Micro

I closed out a trade in AMD a few minutes ago.

There seems to be a lot of chatter over why this move occurred. I am quite certain that it was primarily short covering. The reason I think this is that this move started precisely when AMD was mentioned on CNBC as part of a trading/stock picking contest between teams of Fast Money commentators.

Josh Brown of The Reformed Broker was sitting on the team that picked AMD. He seemed to have a smug expression on his face when teamate Abby was talking about the strong outlook for this company. So I brought the chart up and at first glance I recognized AMD as due for a strong rally. I thought this was Josh's pick, but he assured me by e-mail that Abby "Abby is a talented technician".

Technician.  That means they were aware of the technicals..... Price.

I immediately bought my first tranche. And added to the stock as it showed increased strength.

The hardest part of trading is sitting still while the market pours money in your pocket, tho. So I sold today. I tried to talk myself into believing some fundamental story, but my sober brain says this was a short covering rally sparked by national attention on the telly.

Charts with notes:

Thanks to Abby

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