So many stock prices were so beaten down, in the short-term there was nowhere left to go but up. That’s what bounce buying is I guess.
SIMO was added around about the Christmas Eve masscre, when I did a chunk of my bounce buying. I’ll take the 16% given a modest beat of expectations and…
As we have noted in NFTRH, Silicon Motion actually benefits from the over supply in NAND and the resulting price pressures. In that respect it is somewhat counter-cyclical. But given the “benefits of price elasticity don’t happen immediately” wording I am taking my ball (15%) and going home. That is similar to AAPL’s unflattering report and stock price reaction.
I don’t think it’s a market to just sit back and relax with. If you bought for a bounce you have to stick with that pending material changes to your outlook, right? Well, there haven’t been any of those yet.
The MACD and RSI divergence we noted in NFTRH has manifested in enough upside for my purposes. Though interestingly, it’s not yet overbought.
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