The RacKable Trade (RACK, NTAP, SMCI)

M

michaelscott

I noticed that RACK and NTAP seem to take off right in August. This has been a predictable cycle this last two years with both these stocks. RACK especially has fits where it spikes to 40 dumps back to 18 and then its back to 40. NTAP is not so volatile but it does have its day starting in August. SMCI is a newer issue and seems like the most profitable of the volatile 3.

Im not saying to buy now, but to add these to your focus list. All of them have sold off, they are all tech-type companies that seem to take off in August and have been great trading stocks in the past. RACK seems the riskiest while NTAP is probably the better bet for someone who doesnt enjoy volatility. SMCI is an unknown at this point and has dropped into the 9s, but this is probably the right time to buy. The analyst was trying to bull it up.

I say add to the focus list. It does look like they are going to gap up this morning.
 
I dont think its over with these three sisters. I think they will trade flat for the next 30 days then out of nowhere someone will throw a bid under the price. Somehow August seems like the magical time.
 
Look. Hear me out...

Every August both RACK and NTAP have had nice runs these last few years. NTAP especially fits the pattern of nice run and then dump back down only to shoot back up again.

http://www.prophet.net/analyze/sc.jsp?symbol=$ntap

If you look at the all data chart of NTAP, you can see that this is actually very common. August is NTAP month. In 2001, there was a surge in August followed by the Spring dump and then another surge in August of 2002. etc.

I hear you when you say that RACK was last year's trade, however, the chart of NTAP makes me feel that these wild surges and dumps probably happen each and every year for both.

Only time will tell if I am correct. Like I said, check out the chart for NTAP. The last 7 years, we see the football pass like pattern of run and dump.

Both are growth style stocks which should be more appealing in today's market.

So Im not saying to buy right now, but just keep it on the focus list. I think both will run in August which is only a few weeks away.
 

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I did take a small long position in NTAP today. I believe RACK and SMCI are in the same industries, but neither of those have proven to me yet that they are turning up. I do believe they still have potential, but not going to touch them unless they go green.

NTAP is green today on a bad tape and amongst some very bearish news. 60-70% of the market is in decline today, yet NTAP is staying green. I say now is the right time to buy...
 
Quote from michaelscott:

Look. Hear me out...

Every August both RACK and NTAP have had nice runs these last few years. NTAP especially fits the pattern of nice run and then dump back down only to shoot back up again.

http://www.prophet.net/analyze/sc.jsp?symbol=$ntap

If you look at the all data chart of NTAP, you can see that this is actually very common. August is NTAP month. In 2001, there was a surge in August followed by the Spring dump and then another surge in August of 2002. etc.

I hear you when you say that RACK was last year's trade, however, the chart of NTAP makes me feel that these wild surges and dumps probably happen each and every year for both.

Only time will tell if I am correct. Like I said, check out the chart for NTAP. The last 7 years, we see the football pass like pattern of run and dump.

Both are growth style stocks which should be more appealing in today's market.

So Im not saying to buy right now, but just keep it on the focus list. I think both will run in August which is only a few weeks away.
More...

For the sake of humanity you shoudn't be allowed to go within 20 feet of a computer. I suggest you log off elite trader and go to Longs drugs or safeway to refill your zoloft and paxil ASAP.
 
I've been holding SMCI since the first day of the IPO. It's a solid company with good financials but the stock hasn't had much movement lately. I'm pretty sure it will starting rising again soon
 
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