AMAT

I would certainly put AMAT on your watchlist. It isn't clear what the end game is here yet, but there has been plenty of funny business.

Last Thursday after hours, AMAT reported earnings;  they beat consensus on EPS and Revenues and issued what was viewed as a positive outlook going forward. I don't know if they missed a whisper number or if guidance wasn't what Wall Street was looking for, but it does look like earnings were leaked and AMAT, which was up in after hours Thursday, gave up a 7% gain on Friday to close at a -1.67% loss. There is clearly something going on with the stock that is out of the norm and thus I would at least keep it on a watchlist and check on it periodically as I will.

 In red you can see the very ugly "Dark Cloud Cover" reversal candle and on rising volume.

 On a 5-day chart it appears this is part of a much larger top formation that is 3 years old, if that is the case, AMAT could be in for some spectacular downside. The recent action in white under price, has the look of a small double bottom, however double bottom's now (unlike in the past) almost always have a lower low at the second bottom (a head fake/shakeout move), this one doesn't and volume on a double bottom should increase dramatically in the second half of the formation, the opposite happened here. On a weekly chart, there's a very long legged doji-star reversal candle and right at resistance.

 On a 30 or 60 min chart, there was accumulation in October and again in December, but the move up was never confirmed. About 3 weeks before earnings a strong negative divergence appeared on all long term charts from 15-60 minutes as if Wall Street knew something and were going to use the initially positive earnings as a catalyst for their play.

 Accumulation on a 15 min chart, yet again, no confirmation suggesting AMAT was accumulated low and sold/sold short in to higher prices. There was a sharp negative divergence on the open Friday and it was all downhill from there for price. There is also a deep leading negative divergence from Friday, usually Wall Street is quiet about accumulation and distribution, but I think the large volume allowed them to easily establish a position without raising any suspicions.

 Very short term today on a 2 min chart, it looks like a bounce is in the making, notice the flat range (the quiet Wall Street uses to conduct transactions) and relatively low volume. This isn't heavy accumulation, it looks like middleman being aware of a bounce and positioning for it. Given the chart above, I would suspect AMAT is going to be taken down hard, it seems like the only thing left is the tactical set up and this is why I would keep AMAT on a watch list.

60 min intraday... As I said, I don't know what the tactical end game set up is, but I imagine when it comes, there will be signs.