Returning to tech: Top tech picks for the next six months
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Tech stocks benefit post-election
No quadro em anexo, pode se ver evolução das tradings ideas que constavam no artigo colocado há 2 meses. Usando as dicas para entrar (e sair) penso que as rendibilidade seriam ainda superiores.
Coloco agora novo artigo, do mesmo autor, com as trading ideas para os próximos meses
artigo completo com os gráficos poder ser encontrado em:
http://cbs.marketwatch.com/news/print_s ... nt=1&guid={9234B829-AFAA-4F52-9280-4A8855C3DF34}&siteid=mktw
Tech stocks benefit post-election
Commentary: Four stocks favored for gains
By Jack Rothstein, Wealthcast
Last Update: 1:35 PM ET Nov. 4, 2004
FAIRFAX, Va. (Wealthcast) -- The national election is history. Wednesday's market rally spelled relief. That was the gist of it. The positive action the day after hints toward higher price levels later this year.
There are a number of stocks that are attractive right now. In a piece written on these pages a couple of months ago the focus was all about technology stocks. It is without doubt the place to be right now with a portion of your money. The stocks mentioned in the last piece were Apple Computer, Adobe Systems, Qualcomm, and Symantec. See story.
Those stocks are powerful market leaders that delivered outstanding gains this year. They are currently extended and are mature in their advance. In this piece several technology stocks will be presented that are attractive, and along with the four major leaders, offer favorable odds to gain.
McAfee
The action in McAfee (MFE: news, chart, profile) is stunning. The stock is not as extended as Symantec and could be had coming in a tad. The correct approach regarding MFE at this point in time is a modest position at the start of the buying process, taking on additional shares should the stock come into its pivot point which is roughly 24.52.
The stock closed Wednesday at 25.08. Examine a daily chart and notice the powerful thrust that occurred on Oct. 29. The stock traded almost 10 million shares and gained over 10 percent. That is extraordinary because MFE was already in the midst of a gorgeous advance.
The move came on the heels of its quarterly earnings report, which was better than expected. The report surprised the street coming in over 50 percent better than expectations. It is not the news that is important but how the market reacts to the news that ought to warrant attention.
The stock is up 66 percent this year and could be bought all the way down to 23.50. The stop loss should be placed in the vicinity of 20.50. It's an extended stock that's in a powerful advance that indicates higher price zones later this year. If you check out a weekly chart, then the upside potential is easily visualized.
Nextel Partners
The action expressed in Nextel Partners (NXTP: news, chart, profile) is quite good. The level to buy the stock is around 18 a share. If the stock can close above 17.65 then start buying the stock, and a rise above 18 ought to prompt a more aggressive stand.
The stock is trading at the top of its current base, and that means a rise above that top line will extend the advance. That is exactly what you want out of a stock. Nextel Partners is a good stock in a good group and can deliver good performance if it can rise above and stay above the top of its current base.
This stock is up 30 percent this year and shows no indication of slowing down. The pace of the movement is consistent. I invite you to examine a five-year (weekly) chart and notice the current advance.
The risk/reward certainly favors the reward side of the equation and a rise into the low to mid 20s is not out of the question. Long-term investors ought to place the stop loss at 14.55, just under its 200-day moving average. Traders can shorten the leash and stop the loss in the neighborhood of 15.50.
Foundry Networks
Foundry Networks (FDRY: news, chart, profile) really is a lousy stock in the midst of a contra trend rally. The stock is curling off the bottom after a major decline this year. It currently trades above its 50- and 150-day moving averages. That's a sign that in this contra trend move a stab at the 200-day moving average may be close at hand.
This stock is good for a trade. If you are open to the possibility of realizing a profit over the next couple of months then taking on a long position in FDRY is a good bet.
The stock is angling toward its 200-day moving average, and that is currently 14.57. The stock currently trades at 12.27. The swing trade in this stock can provide you with a realized gain of close to 20 percent, given the favorable action expressed in the Nasdaq ($COMPQ: news, chart, profile) right now. The risk is low, especially if you are in it for a trade. Traders ought to place the stop at 11.90.
Cognizant Technology
The final stock of this quartet is Cognizant Technology (CTSH: news, chart, profile). I refer to this stock as catfish. That is my own personal nickname for it. It acts like a cat in its current expression.
The stock is on a roll. It is extended, so be sure not to chase it up here at current levels. CTSH closed at 36.06 Wednesday, backing off its 52-week high of 37.90 made earlier in the day. The stock is extended, but in a solid and powerful advance. The advance began in August after breaking out above its key inflection points at 25 and change.
The stock is currently up over 58 percent this year. It's a good stock to get involved in coming in to the 33.50 to 34 levels. The stop-loss ought to be placed in the vicinity of 28.90. High beta stocks require a longer leash.
Nasdaq is leading and has been since the middle of August. The months of November, December and January are the best months to be involved in technology stocks.
Now is the time to take on positions, and you have been presented with four instruments that are in solid advances that provide favorable odds to further gains.
Jack Rothstein is an SEC-registered investment advisor who specializes in such growth sectors as technology, drugs, financial services and specialty retail. He also edits the Wealthcast investment letter and hosts two radio shows in the Washington D.C. area. Rothstein has positions in all of the stocks mentioned in this report,with the exception of Apple Computer and Qualcomm, which he recently sold for gains. (wealthcast.com)
Coloco agora novo artigo, do mesmo autor, com as trading ideas para os próximos meses
artigo completo com os gráficos poder ser encontrado em:
http://cbs.marketwatch.com/news/print_s ... nt=1&guid={9234B829-AFAA-4F52-9280-4A8855C3DF34}&siteid=mktw
Tech stocks benefit post-election
Commentary: Four stocks favored for gains
By Jack Rothstein, Wealthcast
Last Update: 1:35 PM ET Nov. 4, 2004
FAIRFAX, Va. (Wealthcast) -- The national election is history. Wednesday's market rally spelled relief. That was the gist of it. The positive action the day after hints toward higher price levels later this year.
There are a number of stocks that are attractive right now. In a piece written on these pages a couple of months ago the focus was all about technology stocks. It is without doubt the place to be right now with a portion of your money. The stocks mentioned in the last piece were Apple Computer, Adobe Systems, Qualcomm, and Symantec. See story.
Those stocks are powerful market leaders that delivered outstanding gains this year. They are currently extended and are mature in their advance. In this piece several technology stocks will be presented that are attractive, and along with the four major leaders, offer favorable odds to gain.
McAfee
The action in McAfee (MFE: news, chart, profile) is stunning. The stock is not as extended as Symantec and could be had coming in a tad. The correct approach regarding MFE at this point in time is a modest position at the start of the buying process, taking on additional shares should the stock come into its pivot point which is roughly 24.52.
The stock closed Wednesday at 25.08. Examine a daily chart and notice the powerful thrust that occurred on Oct. 29. The stock traded almost 10 million shares and gained over 10 percent. That is extraordinary because MFE was already in the midst of a gorgeous advance.
The move came on the heels of its quarterly earnings report, which was better than expected. The report surprised the street coming in over 50 percent better than expectations. It is not the news that is important but how the market reacts to the news that ought to warrant attention.
The stock is up 66 percent this year and could be bought all the way down to 23.50. The stop loss should be placed in the vicinity of 20.50. It's an extended stock that's in a powerful advance that indicates higher price zones later this year. If you check out a weekly chart, then the upside potential is easily visualized.
Nextel Partners
The action expressed in Nextel Partners (NXTP: news, chart, profile) is quite good. The level to buy the stock is around 18 a share. If the stock can close above 17.65 then start buying the stock, and a rise above 18 ought to prompt a more aggressive stand.
The stock is trading at the top of its current base, and that means a rise above that top line will extend the advance. That is exactly what you want out of a stock. Nextel Partners is a good stock in a good group and can deliver good performance if it can rise above and stay above the top of its current base.
This stock is up 30 percent this year and shows no indication of slowing down. The pace of the movement is consistent. I invite you to examine a five-year (weekly) chart and notice the current advance.
The risk/reward certainly favors the reward side of the equation and a rise into the low to mid 20s is not out of the question. Long-term investors ought to place the stop loss at 14.55, just under its 200-day moving average. Traders can shorten the leash and stop the loss in the neighborhood of 15.50.
Foundry Networks
Foundry Networks (FDRY: news, chart, profile) really is a lousy stock in the midst of a contra trend rally. The stock is curling off the bottom after a major decline this year. It currently trades above its 50- and 150-day moving averages. That's a sign that in this contra trend move a stab at the 200-day moving average may be close at hand.
This stock is good for a trade. If you are open to the possibility of realizing a profit over the next couple of months then taking on a long position in FDRY is a good bet.
The stock is angling toward its 200-day moving average, and that is currently 14.57. The stock currently trades at 12.27. The swing trade in this stock can provide you with a realized gain of close to 20 percent, given the favorable action expressed in the Nasdaq ($COMPQ: news, chart, profile) right now. The risk is low, especially if you are in it for a trade. Traders ought to place the stop at 11.90.
Cognizant Technology
The final stock of this quartet is Cognizant Technology (CTSH: news, chart, profile). I refer to this stock as catfish. That is my own personal nickname for it. It acts like a cat in its current expression.
The stock is on a roll. It is extended, so be sure not to chase it up here at current levels. CTSH closed at 36.06 Wednesday, backing off its 52-week high of 37.90 made earlier in the day. The stock is extended, but in a solid and powerful advance. The advance began in August after breaking out above its key inflection points at 25 and change.
The stock is currently up over 58 percent this year. It's a good stock to get involved in coming in to the 33.50 to 34 levels. The stop-loss ought to be placed in the vicinity of 28.90. High beta stocks require a longer leash.
Nasdaq is leading and has been since the middle of August. The months of November, December and January are the best months to be involved in technology stocks.
Now is the time to take on positions, and you have been presented with four instruments that are in solid advances that provide favorable odds to further gains.
Jack Rothstein is an SEC-registered investment advisor who specializes in such growth sectors as technology, drugs, financial services and specialty retail. He also edits the Wealthcast investment letter and hosts two radio shows in the Washington D.C. area. Rothstein has positions in all of the stocks mentioned in this report,with the exception of Apple Computer and Qualcomm, which he recently sold for gains. (wealthcast.com)
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Returning to tech: Top tech picks for the next six months
THE GURU'S CORNER
Returning to tech
Commentary: Top tech picks for the next six months
By Jack Rothstein, Wealthcast
Last Update: 12:40 PM ET Sept. 14, 2004
FAIRFAX, Va. (Wealthcast) -- The current market is in a confirmed rally. The smart money is getting involved. This rally could provide good performance over the next few months.
The posture taken at this time is more aggressive. The exposure is greater because the market is in a rally as the bull market ages gracefully.
The selling that took place this year was controlled. The tape this year has been split. The value side of the equation has gotten the best play. Growth has taken a back seat.
I am going to get into tech stocks right now. If you can't be at risk then avoid stocks. If you can be at risk then get involved employing a method that improves the odds for success. Always use stop losses when getting involved in stocks -- lessons learned from times past.
The stocks that follow are choices I made a while ago. I have been long the following stocks this year and currently carry long positions in each. Today I stuck a toe in the water on Dell Computer .
Technology stocks have under performed this year and there is one big cap that I will examine that is very good for a trade right now and that is IBM.
The tech stocks that I carry the heaviest positions in are Symantech, Adobe, Apple, and Qualcomm.
Dell
Dell can get another visit and another try. It is trading well right now and will likely challenge the top of its base. If Dell can cross 37.20 on a close in heavy trade then the stock ought to be bought aggressively.
Start buying the stock as it crosses 36.20. I invite you to examine a daily chart and see the action in the stock over the last year. Dell is up only 5 percent this year. It is up only 6 percent in the last 52 weeks. The high made on October 18th of last year will get challenged. Dell is in a long term advance that could receive a burst of energy should the base be taken out. Volume should exceed 20 million shares.
Short covering will lift the shares as well. Pure buyers are better. Use 33.99 as a sell stop.
IBM
The stock is oversold and bouncing off the bottom of its trading range so the risk is low. IBM is a good stock right now and could result in a good trade over the next few months. The stock is good for a trade up to its 200-day moving average. If you want to get cute and go fishing on the bottom for oversold stocks why not choose a big fish.
So IBM is curling off the bottom of its range. That is a fact. The market bottomed on August 13th. IBM bottomed the day before hitting its 52-week low. This is an ugly chart and the best way to handle it is to sell into strength. Stocks like IBM and the Semiconductors as a whole are providing good trading chances right now. The better trade is to sell into strength.
Place the stop on IBM at 84.25. That is below its declining 50-day moving average. Odds favor this stock will be a good short a few months after the election. Right now it is good for a trade up to the 200-day moving average of 90.55. The current price is roughly 87.
Top tech picks
Now for the most exciting stocks right now in the technology sector: Symantech, McAffe, Apple, Qualcomm, and Adobe.
The action in SYMC is quite good. I bought it back recently after selling it in the early spring as it moved into an intermediate term slump.
The stock slumps no longer. This stock SYMC could explode should it cross 51 on a closing basis. The stocks is in fine shape technically. Examine the chart. Don't look at a 5 minute chart. Lets be serious about making real money. This stock as long as it trades above its key inflection points and continues to advance should be owned. How do you buy it? Are you serious about making money in the stock market? Then get involved in stocks that are rising. The way to buy SYMC is on a price above 51 near the close of business. It is on the verge of reaching that key point. That is the 52-week high and its five-year high for that matter. It will go higher for a while.
Growth typically outperforms post election, so this stock -- along with the others mentioned -- tend to outperform. When you take on SYMC you are taking on a stock that provides steady long term growth. It's perhaps the best performing tech stock over the last five years. The stock trades near its all time high. SYMC is up 47 percent this year and 70 percent year over year. Nasdaq ($COMPQ: news, chart, profile) has lagged this year thanks to the dismal performance of semiconductors. This stock has led and continues to lead and will provide you steady gains over the next several months. It never dropped below its 200-day moving average this year. It did fail to hold the 50-day line earlier in the year and has since recovered. It needs greater volume to really spark a serious climb.
Related to SYMC is McAfee. This stock can get to 30 quickly if it can plow through 21. Right now is a good time to stick a toe in the water.
It is making a stab toward breaking out to a new 52-week high and trading in sync with SYMC. The charts have similar patterns over the last year. SYMC is the stronger stock of the two yet both can be owned as part of a basket.
They led nicely last year and are still leading the tech space in 2004. MFE is currently up 30 percent this year and 35 percent year over year. The stock has performed quite nicely since bottoming out at the end of July. So the advance has reemerged. A close above 20 and the stock could fly. The 21 range is key and a 50 percent return is doable -- and that could happen within a few months. The odds are pointing in that direction. I invite you to examine the chart of MFE.
Adobe Systems is one of the best software stocks around right now.
The stock broke out the other day in heavy volume when it took out its 52-week high. It popped over that point with ease but the volume is a little disappointing. The stock is a leader no doubt about that. Ask any shareowner how they feel about the current performance in ADBE and they will offer up a smile. Happy shareowners typically means good performance. The stock offers good performance and the numbers provide the evidence.
Clearly the stock is a leader. It broke through the 52-week high the other day. It didn't get there moving straight up. Stocks never do. ADBE did violate its 50- and 200-day moving averages several times this year. The perceived risk in the stock is currently low and that is what is driving the price.
Investors want to own this stock. It enjoys positive money flow yet the volume is not quite where it ought to be to really get excited about its future chances. Right now the stock is up 27 percent this year and only 26 percent in the last 52 weeks. The advance is not mature. The stock can get going. It is way off the five-year high and could take off. It won't get back to the five-year high anytime soon, however. The likely move from my view of the price pattern is a move to the 55 to 57 zone. It currently trades just under 50. The stock is poised to make a move. It could be bought in the 47 to 48 zone. Right now it is slightly extended. It's up over 6 percent in the last five days. It ought to come in a tad and that is a good moment to jump right on it. Use 44.49 and 40.99 to stop the loss.
Apple Computer and QCOM are the final two tech stocks that form the basket of tech stocks that I am currently involved in. I must confess that I trimmed a piece of QCOM at 39 and change the other day because it is slightly extended. QCOM trades close to 30 percent above its 200-day moving average and the stock really has to come in to the 36 to 37 level for it to be attractive. So I took a piece out but am prepared to buy more coming in to its rising 50-day line.
QCOM has a rising 50- and 200- day line and perhaps the best performing large-cap tech stock around. It has been this year and over the last 52 week as well. The stock split 2-for-1 the other day implying confidence. The stock popped into this current advance as the rising 50-day line came in direct contact with the share price.
The last break out in the stock occurred on august 19th. The stock rose at that time in better then average trade pulling away form its rising 50 day line. The stock wants to stay around and trade near that line and as long as that line is rising the stock is likely to follow suite. Place the stop at 33.99.
Apple Computer is a leader that is extended. The stock has made quite the move this year and is perfuming exceedingly well. AAPL is up 67 percent this year. The year over year gain has all occurred this year. The solid advance began after the stock broke through its three-year plus high earlier in the year and struggled for a while finally breaking through recently.
Examine the weekly chart and notice the big gap that is in the process of getting filled. The stock has the potential to rise into the mid 40's and ultimately challenge 55 a share. That was the zone when it free fell on Sept. 29, 2000. It fell from 55 to 26 in a day. It is now on track to backtrack. The stock is currently extended so it could be had between 33 and 34. The stock will not move straight to 55 so manage it.
Place the initial stop loss at the 50 day moving average 31.99 and a final stop at 29.60. Give AAPL some room.
The current market is in rally mode. Europe and Asia have turned as well. Growth tends to outperform value after a presidential election for at least a while. The market will be higher in six months than it is today.
Jack Rothstein is an SEC-registered investment advisor who specializes in such growth sectors as technology, drugs, financial services and specialty retail. He also edits the Wealthcast investment letter and hosts two radio shows in the Washington D.C. area. Rothstein has positions in all of the stocks mentioned in this report. (wealthcast.com)
Content found in The Guru's Corner is subject to the terms and conditions found in the Disclaimer and does not represent a recommendation of investment advice. Investors should seek the advice of a qualified investment professional prior to making any investment decisions. (disclaimer)
http://cbs.marketwatch.com/news/story.asp?page=1&guid={99ADAFCF-3E43-4301-BD2C-524D530CA904}&siteid=mktw
Returning to tech
Commentary: Top tech picks for the next six months
By Jack Rothstein, Wealthcast
Last Update: 12:40 PM ET Sept. 14, 2004
FAIRFAX, Va. (Wealthcast) -- The current market is in a confirmed rally. The smart money is getting involved. This rally could provide good performance over the next few months.
The posture taken at this time is more aggressive. The exposure is greater because the market is in a rally as the bull market ages gracefully.
The selling that took place this year was controlled. The tape this year has been split. The value side of the equation has gotten the best play. Growth has taken a back seat.
I am going to get into tech stocks right now. If you can't be at risk then avoid stocks. If you can be at risk then get involved employing a method that improves the odds for success. Always use stop losses when getting involved in stocks -- lessons learned from times past.
The stocks that follow are choices I made a while ago. I have been long the following stocks this year and currently carry long positions in each. Today I stuck a toe in the water on Dell Computer .
Technology stocks have under performed this year and there is one big cap that I will examine that is very good for a trade right now and that is IBM.
The tech stocks that I carry the heaviest positions in are Symantech, Adobe, Apple, and Qualcomm.
Dell
Dell can get another visit and another try. It is trading well right now and will likely challenge the top of its base. If Dell can cross 37.20 on a close in heavy trade then the stock ought to be bought aggressively.
Start buying the stock as it crosses 36.20. I invite you to examine a daily chart and see the action in the stock over the last year. Dell is up only 5 percent this year. It is up only 6 percent in the last 52 weeks. The high made on October 18th of last year will get challenged. Dell is in a long term advance that could receive a burst of energy should the base be taken out. Volume should exceed 20 million shares.
Short covering will lift the shares as well. Pure buyers are better. Use 33.99 as a sell stop.
IBM
The stock is oversold and bouncing off the bottom of its trading range so the risk is low. IBM is a good stock right now and could result in a good trade over the next few months. The stock is good for a trade up to its 200-day moving average. If you want to get cute and go fishing on the bottom for oversold stocks why not choose a big fish.
So IBM is curling off the bottom of its range. That is a fact. The market bottomed on August 13th. IBM bottomed the day before hitting its 52-week low. This is an ugly chart and the best way to handle it is to sell into strength. Stocks like IBM and the Semiconductors as a whole are providing good trading chances right now. The better trade is to sell into strength.
Place the stop on IBM at 84.25. That is below its declining 50-day moving average. Odds favor this stock will be a good short a few months after the election. Right now it is good for a trade up to the 200-day moving average of 90.55. The current price is roughly 87.
Top tech picks
Now for the most exciting stocks right now in the technology sector: Symantech, McAffe, Apple, Qualcomm, and Adobe.
The action in SYMC is quite good. I bought it back recently after selling it in the early spring as it moved into an intermediate term slump.
The stock slumps no longer. This stock SYMC could explode should it cross 51 on a closing basis. The stocks is in fine shape technically. Examine the chart. Don't look at a 5 minute chart. Lets be serious about making real money. This stock as long as it trades above its key inflection points and continues to advance should be owned. How do you buy it? Are you serious about making money in the stock market? Then get involved in stocks that are rising. The way to buy SYMC is on a price above 51 near the close of business. It is on the verge of reaching that key point. That is the 52-week high and its five-year high for that matter. It will go higher for a while.
Growth typically outperforms post election, so this stock -- along with the others mentioned -- tend to outperform. When you take on SYMC you are taking on a stock that provides steady long term growth. It's perhaps the best performing tech stock over the last five years. The stock trades near its all time high. SYMC is up 47 percent this year and 70 percent year over year. Nasdaq ($COMPQ: news, chart, profile) has lagged this year thanks to the dismal performance of semiconductors. This stock has led and continues to lead and will provide you steady gains over the next several months. It never dropped below its 200-day moving average this year. It did fail to hold the 50-day line earlier in the year and has since recovered. It needs greater volume to really spark a serious climb.
Related to SYMC is McAfee. This stock can get to 30 quickly if it can plow through 21. Right now is a good time to stick a toe in the water.
It is making a stab toward breaking out to a new 52-week high and trading in sync with SYMC. The charts have similar patterns over the last year. SYMC is the stronger stock of the two yet both can be owned as part of a basket.
They led nicely last year and are still leading the tech space in 2004. MFE is currently up 30 percent this year and 35 percent year over year. The stock has performed quite nicely since bottoming out at the end of July. So the advance has reemerged. A close above 20 and the stock could fly. The 21 range is key and a 50 percent return is doable -- and that could happen within a few months. The odds are pointing in that direction. I invite you to examine the chart of MFE.
Adobe Systems is one of the best software stocks around right now.
The stock broke out the other day in heavy volume when it took out its 52-week high. It popped over that point with ease but the volume is a little disappointing. The stock is a leader no doubt about that. Ask any shareowner how they feel about the current performance in ADBE and they will offer up a smile. Happy shareowners typically means good performance. The stock offers good performance and the numbers provide the evidence.
Clearly the stock is a leader. It broke through the 52-week high the other day. It didn't get there moving straight up. Stocks never do. ADBE did violate its 50- and 200-day moving averages several times this year. The perceived risk in the stock is currently low and that is what is driving the price.
Investors want to own this stock. It enjoys positive money flow yet the volume is not quite where it ought to be to really get excited about its future chances. Right now the stock is up 27 percent this year and only 26 percent in the last 52 weeks. The advance is not mature. The stock can get going. It is way off the five-year high and could take off. It won't get back to the five-year high anytime soon, however. The likely move from my view of the price pattern is a move to the 55 to 57 zone. It currently trades just under 50. The stock is poised to make a move. It could be bought in the 47 to 48 zone. Right now it is slightly extended. It's up over 6 percent in the last five days. It ought to come in a tad and that is a good moment to jump right on it. Use 44.49 and 40.99 to stop the loss.
Apple Computer and QCOM are the final two tech stocks that form the basket of tech stocks that I am currently involved in. I must confess that I trimmed a piece of QCOM at 39 and change the other day because it is slightly extended. QCOM trades close to 30 percent above its 200-day moving average and the stock really has to come in to the 36 to 37 level for it to be attractive. So I took a piece out but am prepared to buy more coming in to its rising 50-day line.
QCOM has a rising 50- and 200- day line and perhaps the best performing large-cap tech stock around. It has been this year and over the last 52 week as well. The stock split 2-for-1 the other day implying confidence. The stock popped into this current advance as the rising 50-day line came in direct contact with the share price.
The last break out in the stock occurred on august 19th. The stock rose at that time in better then average trade pulling away form its rising 50 day line. The stock wants to stay around and trade near that line and as long as that line is rising the stock is likely to follow suite. Place the stop at 33.99.
Apple Computer is a leader that is extended. The stock has made quite the move this year and is perfuming exceedingly well. AAPL is up 67 percent this year. The year over year gain has all occurred this year. The solid advance began after the stock broke through its three-year plus high earlier in the year and struggled for a while finally breaking through recently.
Examine the weekly chart and notice the big gap that is in the process of getting filled. The stock has the potential to rise into the mid 40's and ultimately challenge 55 a share. That was the zone when it free fell on Sept. 29, 2000. It fell from 55 to 26 in a day. It is now on track to backtrack. The stock is currently extended so it could be had between 33 and 34. The stock will not move straight to 55 so manage it.
Place the initial stop loss at the 50 day moving average 31.99 and a final stop at 29.60. Give AAPL some room.
The current market is in rally mode. Europe and Asia have turned as well. Growth tends to outperform value after a presidential election for at least a while. The market will be higher in six months than it is today.
Jack Rothstein is an SEC-registered investment advisor who specializes in such growth sectors as technology, drugs, financial services and specialty retail. He also edits the Wealthcast investment letter and hosts two radio shows in the Washington D.C. area. Rothstein has positions in all of the stocks mentioned in this report. (wealthcast.com)
Content found in The Guru's Corner is subject to the terms and conditions found in the Disclaimer and does not represent a recommendation of investment advice. Investors should seek the advice of a qualified investment professional prior to making any investment decisions. (disclaimer)
http://cbs.marketwatch.com/news/story.asp?page=1&guid={99ADAFCF-3E43-4301-BD2C-524D530CA904}&siteid=mktw
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