Optical and storage names just pulled back hard, and I keep getting asked if it is time to buy the dip. Here is how I would think about it.

Marvell ran over 54% in a week and printed six straight green days. That is a parabolic move. The reality is, parabolic moves always revert toward the mean. Not maybe. Always. The only question is when.

So what do you do? First, if you are already long and in profit, trail your stop. Do not give back a 54% move hoping for more. Second, if you are not in yet, do not chase a stock this far above its moving averages, because your stop has to sit miles away and your risk is huge. Third, wait for a pullback to a support level you can actually define. Let price come to you.

The trend is still up, so I am not shorting this. But buying right after a vertical run is how most traders donate money to the market. Be patient. And that's it.