There is a nice gap down in adbe due to analyst downgrade action. Rules in strong markets: - buy downgrades, if company is overall Ok - buy gaps down - sit and wait - sell if gap closed.
I agree 100%. It may stay down for a few days but it will go back up filling the gap. I read over the weekend that ADBE purposely was cautious in their prediction of next Q so as to beat it by quite a bit. I trade size and therefore have several thousand shares with a breakeven about half way back. If you notice Macr is hitting highs and it should only be a short time before adobe buyers get on board It appears no more than a typical upturning stock that pulls back and buyers move in. There is some wishful thinking on my part, of course, but ADBE is a buy anywhere under 33.00 Don
Of course there is that yet-to-be-filled gap at 28, which is conveniently located at the same level as the 200 day sma. And yesterday was an NR4/IB day which should provide an intraday opportunity also.
look at monthly and weekly chart ADBE is in major down trend. It is on my short watch for a significant breakdown. Any rally is an opportunity to short. IMO
Gap @ 28 possible, yes. Major downtrend in adbe, possible, but Adbe is not a favorite for me on the short side. They have a very conservative management, moderate P/E and lots of cash. Trading Adbe in and out since 5 years and made a lot with this stock.
A moderate P/E? Wow, it sure does tell a tale of today's marketplace when a 37 P/e is considered moderate. I guess relative to the triple digit PE's of 3-5 years ago sure. It is a good trading stock though, and I agree it makes taking size worthwhile.
Hey that NR4/IB trade worked out well today so far. Certainly one has a decent intraday profit opportunity. I'm outside with the kids so I didn't take it. We are getting ready for vacation and vacation trading is a no-no for daddy.
Yes , moderate compared to average P/E of NQ. No, Adbe never had triple digit PE, but take a look at EBAY, Yhoo, EXPE, USAI....even now. Anyway good luck. It doesn't matter if you are long or short, it does matter that you make money.
Gap already closed, sold @ 34.47, made more than 10% within 14 days. Something else: End of July usually tends to be lousy for stocks. Be aware.
Since it did jump with the rest of tech yesterday I sold. Just in case it wants to follow more of a down trend which I expect this week. I made mine. don