AMD P/L

Here's the P/L for AMD, I decided to include 2 charts, if I'm not pointing out the concepts for you to put in your tool box, then I'm not doing what I set out to do with Wolf on Wall Street, Keep you from being a sheep and instead a wolf in sheep's clothing and giving you the tools and concepts , like teaching a man to fish rather than giving a man a fish (or woman-Rosanne :)

I think we sold AMD at the perfect spot intraday, it seems to be slipping now. At the fill of $3.77 the gain on the straight long equity (NO LEVERAGE -which is actually what I prefer believe it or not) is +50.8%, not bad.

AMD has more to offer, while it's true that most stocks follow the market (90%), there are always those that buck the trend (UNG I think and probably AMD). For now though I think AMD has made its move, it's time to pullback and if it does with accumulation, we'll be buyers so long as the trade comes to us-no chasing!

 On a daily, "A" represents Stage 4 of the market cycle, Decline and at "B" it is capped off by "Capitulation", however most people think that is the final low so longs buy capitulation and there's one more low to shake them out at "C". "D" is a strong accumulation area, you can tell by the flat price range and low volume, Wall Street never wants to tip its hand unless its to their advantage.

People get so upset about this no matter how many times I explain it, I've written two articles that are linked on the member's site, "Understanding the Head-Fake Move", but still they get upset. At "E" we have a break below support with 3C accumulation, it;'s a shakeout/head fake move and one of the best timing elements we have as this is one of the last things to happen at least 80% of the time before a reversal, kind of like the market today!!! Shorts pile in typically and price moves back up, shorts are squeezed and the move starts and we have the stage 1 base behind us and move to stage 2 mark-up at "F" as resistance of the base is broken on heavy volume with good follow through.. The move is too parabolic for me, I think it has to come down.

Here's a closer look, "A" is the head-fake move-this is why you NEVER put your stop at such an obvious place and this is the best time to buy-best price/lowest risk and great timing. "B" is the start of the short squeeze and "C" is a stage 2 breakout to mark up or what we call the bull market trend.