AMD Warns

This has been the trend the last year or so in earnings and accelerating, pre-warning and AMD did just that taking the stock down 9+% today.

AMD warns...

"NEW YORK (AP) -- Shares of chipmaker Advanced Micro Devices Inc. hit a multi-year low Friday after it warned that sales in the latest quarter were well below its forecast.

THE SPARK: Late Thursday, AMD said third-quarter revenue will fall about 10 percent from the second quarter because of the sagging PC market. The Sunnyvale, Calif., company had said previously that it expected revenue would fall 1 percent, plus or minus 3 percent

THE ANALYSIS: AMD is Intel's only real competitor in processing chips for PCs, but only has about 20 percent of the market and has had a hard time keeping up with the bigger company's technological advances. AMD also makes graphics chips that go into high-end PCs."

 The AMD position now accounts for less than -1% of portfolio loss as it was a speculative position, although I won't sell it right here, but rather wait for a dead cat bounce.

 AMD looked like one of the cheap stocks that had been beaten up that was building a base as we have been seeing more and more of recently, today doesn't kill that base, but it will be at least several weeks before we see how the rapid discounting of the warning fits in with what smart money already discounted.

 AMD was looking better on a long term view (60 min) from distribution to a downtrend to the start of a base, it may very well continue as this move down is more likely retail than institutional money, they have a better idea of what was really going on at AMD and would have discounted it weeks and months ago.

 The near term, AMD's base area looked almost like a lot of tech stocks, the decline and a base building (10 min)

Here's today's 1 min chart, it looks like the sell-of is being accumulated by someone, whether short term traders or still part of a larger base is what remains to be seen, in any case, a dead cat bounce higher should be coming as it fills part or all of the gap, I'll wait for that and take a look at AMD and decide what to do with it then.