March 24, 2011

ADOBE (ADBE) WEAKNESS IS A BUYING OPPORTUNITY

We are long on Adobe (ADBE) from $25.66. We have already taken profits on partial position, putting us in a position to take advantage of any post earnings major weakness . Those not already long Adobe may take advantage of any weakness to open a new position.

Adobe reported earnings in line with consensus, but reduced revenue forecast for the second quarter by $50 million due to projected weakness in Japan. Prior to the earnings, it did not take a genius to predict reduction in revenue projections in Japan for the next quarter ‘”after all post earthquake buying software and related services for the web is not a priority in Japan.

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March 24, 2011

TIME TO TAKE SOME PROFITS ON NVIDIA (NVDA)

Image via Wikipedia

We have been short Nvidia (NVDA) with an average price of $25.53. At the time of entering the trade, we stated that the Quantitative Screen of the ZYX Change Method was showing the fair value of Nvidia to be $18. When the stock was just breaking $19 on March 10, 2011, we wrote, “The quantitative screen of the ZYX Change Method shows a fair value of Nvidia to be $18. However, our years of experience have taught us that in this case there is a high probability for Nvidia to overshoot to the $15-16 range.”

In our years of experience, it has been proven conclusively that no one, including us, can consistently call the exact points.

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March 24, 2011