Wednesday, July 29, 2009

No Let Up in the RF Semi Space

I keep staring at my limit buy orders lower on these 3 names and they look fruitless at times ...

It is obvious money is moving into this group and as long as the market doesn't fall off the stool bench they look like they are going to be serious winners here in the next move up. When stocks act immune to the indexes during down days, that's a very good sign. While I placed starter positions in TriQuint Semi (TQNT) and RF Micro Devices (RFMD) last week, while hoping for a pullback (that assumed the market would correct one of these days), the other slot to buy these is on a breakout over a range. My dream scenario was...

First glance, I'd be thrilled to load up on TQNT below $6, and RFMD below $4. TQNT is in the process of filling yesterday's gap as we speak.

If the market decides to not truly correct, we'll instead be looking to buy launches out of ranges - although I'd feel much better buying cheaper than in the "momentum" driven way. So with all 3 names in our basket - essentially draw a flat line over the intraday highs of the past week and if they "jump over" that means the momentum crowd is trying to take them for their next leg. However this "momo" crowd has a very short attention span and if the market begins to get squirrely they will leave you holding the proverbial bag. So it's a tough call here.... but I love the relative strength and would gladly sop up stock even at the 20 day moving average at this point. Which is where I've moved all my limit buy orders up to today. The market would make our decision much easier if it could have a nice swan dive - 2 days would be fine.

[Jul 23, 2009: Positive News Out of RF Semi Space - TriQuint Semiconductor, Skyworks Solutions]
[May 12, 2009: Beginning Skyworks Solutions (SWKS)

Long Skyworks Solutions, TriQuint Semiconductor, RF Micro Devices in fund; long RF Micro Devices in personal account

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