|As I pointed out on October 8, TXN's chart closely paralleled the chart of GE. I pointed out that GE had real problems, and wondered what the chart similarity meant for TXN. Did it mean that TXN had serious problems like GE, only they hadn't surfaced yet?|
The problems surfaced today. TXN missed earnings, announced the planned sale of part of it's cell phone business at a loss, and gave a grim (IMHO) forecast about the cell phone business going forward.
It seems obvious to me, that these problems were known by large holders of the stock before this information became general knowledge today. I make this assertion based on the similarity of the TXN and GE charts. I have noticed in the past that TXN stock seems to fall while the news is good (or at least not bad) and only when the bottom is reached does the bad news come out. In this case, I think the bad news will only drive the stock lower, but we shall have to see.
In the meantime, continue to look at the charts for the real indication on what is going on behind the scenes.