AMAT is in a multi-year post-parabolic correction; trade for bounces with profit-taking, expecting a lower trend over the next couple of years.

All right. Applied materials. and not a recommendation by the way. So, don't mind doing these occasionally. Don't want to do these every day because al So, you guys will start thinking these are all recommendations.

So, be careful. We're just kind of giving you top of the the mind what we're thinking here.

you know when you're talking about the semiconductor space, obviously this has been one of the hot areas of the market for a while. It was extremely hot. Um a lot of those have had big corrections.

But um you know overall there's several different layers of the of that trade and and of course uh applied materials is on the kind of the manufacturing side of what's happening

and and again so you can bring this chart up Brent. So applied materials has had a pretty big correction here.

Earnings are good, outlook is good. There's uh nothing really kind of going on uh you know to say not to own applied materials and it's been through a decent correction. It's it's trying to base here, but it's still trading well below a lot of its moving averages importantly.

So, if you wanted to try to buy it here, you've got a pretty decent setup. You buy it here, you put a stop in at about 418, which is that 200 day moving average. If you take that out, then you know, pretty much just keep your stop there, keep it really tight, and you you'll probably be okay.

If we can break out above those moving averages, then potentially you've got a push back uh towards the previous highs. But again, this is a, you know, kind of just a short-term look on on this in on on the stock.

But if you go back, this is this is a a longer term chart. You see this very big spike that occurred within applied materials. And this was the whole, you know, semiconductor push higher.

So most of the opportunity, most of the, you know, easy money was already made in applied materials. So you're kind of playing with a price, a a a stock that is within a price correction following a parabolic spike.

So trade this very closely. It doesn't mean there's anything wrong with the company, but these stocks got way ahead of themselves during that whole semiconductor chase previously.

And so we're kind of working through the reversion of that parabolic spike. And that typically doesn't resolve itself in just a couple of weeks or a couple of months. This is something that generally takes a year or two to kind of work itself out historically.

And so just, you know, I would trade this for bounces and then when you get a decent bounce, take some profits, look for the next retracement because this could continue to kind of bounce but bounce in a lower trend over the course of the next couple years. particularly once we start to see the demand for semiconductors pull back as we get this data center process kind of completed over the next two years.