Cirrus Logic is my most favorite stock, it has helped me gain more than $45,000. I have recently sold all my position in Cirrus Logic because I believe this stock is way overbought. It has gain more than 40% in a very short time, in less than 2 weeks.
Technical Analysis:
The MACD indicator shows that the blue line is stretching very far from the red line, although it is a bullish sign as long as the blue line is on top, but I believe that it also indicate overbought position. Imagine if you take a rubber band and start streching it at the both end until you feel the tension. What will happen if you pull further, it will definetely snap. The same theory, I believe, applies here.
The Stochastic indicator points that the blue line is about to cross over to below the red line and consolidate. Although the blue line is currently flat and not touching the red line yet, but I believe, the time is ripe for the blue line to cross over for a major consolidation.
Summary:
This is not a stock that I will touch for now. It does not mean that I will not touch this stock again. Infact, my whole capital of $157,000 will be all reinvested into this stock again once I can feel that the timing is right.
Intersil Corporation is also another stock that I am waiting at the sideline to go in once the selling has been fully absorbed.
So when will I reinvest all my capital again? Stay tuned to The Market Oracle to find the answer.
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