Best gain of the year today for $AMAT. The stock is up over 7.5% and trading near the highs of the day with an hour to go in the session. Overall the semi sector has been moving well since the open. The $SMH continues to expand this morning’s early pop and is now up just shy of 5%. We’ve been monitoring the action in $AMAT for the last few weeks. In mid October we added to longs near the $33.00 area, withstood considerable heat last week but stuck with it. This week $AMAT is tracing out a huge upside reversal and is headed for a close back above its 40 week moving average. As this is playing out the stock remains at its deepest oversold reading(weekly MACD)since Q4 of 2000. There is certainly the potential for a healthy rebound move. We are sticking with longs. Earnings are due Nov. 15.
At time of publication we are long $AMAT in most managed accounts.