adbe long

H

heilbronner

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
 
It may stay down for a few days but it will go back up filling the gap.
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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
 
Quote from inandlong:


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.
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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.

:)
 
Quote from inandlong:

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.
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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. :D
 
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
 
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