Josh wanted my thoughts on his short of STX:
I’ve been short on STX at 20.25 for a little while now and I’m curious to see how you read the chart. You probably think I am a heavy shorter based on all my comments/emails/chart requests, but this is actually my first short trade off paper!
It had appeared to be overbought having a run from 16 to 20, but the stochastic took a funny turn over the past three days back to oversold mark!? The volume has been decreasing and I am still holding looking for 17-18 within the next month or two. What is your view on the stock/chart?
First, I’m the last person in the world to apologize to for shorting stocks. I think it only makes sense to look for both longs and shorts. Having said that, I definitely don’t see STX as a short that I’d take, especially not for that time frame. If you trade with the trend you should be looking for a point to get long STX. Also, the data storage group has been one of the stronger groups recently. I just don’t see this stock falling very much.
Mike,
I closed out my position in STX today on some weakness at 19.8 for a small gain. Wasn’t sure how long the weakness would continue – the 10 DMA, volume and MACD have been on the decline lately.
As usual, I always close out my positions too fast. But now that STX is down around 18, I’m thinking about going long on it. What do you think about the stock now at current levels?