Rudolph Technologies (RTEC)
"Rudolph Technologies, Inc. is a leader in the design, development, manufacture and support of high-performance process control metrology and macro defect inspection equipment used by semiconductor device manufacturers around the world." (company website)
RTEC 4-month chart
RTEC 1-year chart
10 December 2009. RTEC peaked in August but has been trending down since then. A modest earnings surprise in November was enough to arrest the freefall from the October peak, but not to change the trend. Right now it is in a squeeze play between the falling 50-day moving average and the rising 200-day.
- Percentage price oscillator (PPO) — above the signal line but showing signs of converging back toward it
- Volume — volume peaks since earnings are decreasing
Based on technical analysis, MarketEdge calls RTEC a "short candidate" in a "weak downward trend."
Buy to cover
18 December 2009. In early trading today RTEC seemed to bounce off yesterday's big drop and it looked like it was getting support from the trend line — I decided to cover and take modest profits. As luck would have it, of course, in late trading RTEC dropped back to close the day at $6.45 on very heavy volume.
Although I left some money on the table the volume puzzles me. I'm getting better at short trades, but I always fear that I've shorted just before a reversal, so I'm hypersensitive to the slightest bullish signal.