Lam Research Corp (LRCX)

Semiconductor equipment guys, who provide equipment for semiconductor companies to make chips. Something that is sort of interrupting the equipment market is that China is building out a semiconductor industry and are making gobs of money. The stock hit new highs and continues moving higher. Feels it is a very elevated stock. China moving into the market will cause semiconductor prices to come down longer-term, so he would stay away.

He doesn’t know this company. The stock had fairly low volatility and is moving up, and it’s now moving into a pattern of regular sell-off and that's usually healthy. He doesn’t know how much lower it could go. He would suggest that as the stock gets around 5% off of his 200-day moving average, would be when you get into the time when you can see if the stock is going to maintain an up trend. If you get to a point where the stock stops falling and starts to reverse, then it might be a good point to buy it.