Proven Track Record of Most Accurate Analysis
Proven Track Record
of Most Accurate Analysis
On our Western Digital (WDC) position we are lowering the stops on a 5% tranche to $25.32 and another 5% tranche at $25.36. Also taking profits on a 15% tranche at $25.20. In these volatile times when we have a quick profit like we have on Western Digital, it is best to realize the profits.
The reality is beginning to set in that yesterday’s move on Western Digital (WDC) was excessive. The news of supply agreement with SAE Magnetics is positive for the next three months, but after that it should make no difference. EU approval of Hitachi deal was expected so there was no surprise there. Western Digital is down today about $1.00. Western Digital has now broken the first support at $25.85. The next support is at $25.50 and then $25.20. In the interest of defensive trading, it is best for conservative investors to take
Western Digital (WDC) is in the business of disk drives. The stock has moved up strongly on European Union approving acquisition of Hitachi unit and a supply agreement with SAE Magnetics. None of these developments help the long-term deterioration of the disk drive business. Our plan is to slowly keep on adding if the stock goes higher, but also be quick to take profits because this is a technology stock and the 4th quarter is seasonally strong for technology stocks. Added an additional 10% tranche order at $27.54 in addition to the previous orders.
Short sold a 10% tranche at $26.82. Also limit orders at $26.98, $27.23, $27.44 and $27.73 for 5% tranches.
Chevron (CVX) and Transocean(RIG) are down on the reports of a big oil leak from a rig located close to the coast of Brazil. Neither Chevron nor Transocean has denied or acknowledged the leak. Chevron has issued a statement that the valve has been killed. Speculation is that the spill is bigger than the BP (BP spill in the Gulf of Mexico). A news of a big spill always provides excellent trading opportunities. investors are well advised to keep a close eye on Chevron and Transocean. We will be closely following these two
In a small study at The Arora Report, accuracy of Apple (AAPL) Siri voice recognition trumped Google (GOOG) Android voice recognition. The study involved reading a page of text by five different persons to Apple Siri and three android devices in a room with moderate conversational noise. Siri showed only 96% accuracy which is less than what Apple enthusiasts claim. Android fared even worse with only 93% accuracy. The study was repeated with no material noise. Siri showed accuracy of 98%, Android showed accuracy of 97%. The accuracy needs to approach 100% for voice recognition to be
Cray (CRAY) stock is trading strongly higher after it was announced that University of Illinois’ National Center for Supercomputing Applications has struck a $188 million multi-year deal with Cray. Cray will provide XE6 and XK6 models. These computers will incorporate Opteron CPUs from Advanced Micro Devices (AMD) and Kapler GPU from Nvidia (NVDA). Historically, Cray moves up on big announcements and then drifts down unless there is a short squeeze.
IBM (IBM) can now count Warren Buffett as owner of over 5% of the stock. Buffett has built his $10.7 billion stake in IBM over the last two quarters. This is Buffett’s first big technology purchase. Investors may want to observe caution in following Buffett into IBM as Buffett stated that he is done with his purchases and his purchases were at an average cost of about $170. Now IBM is trading around $190.