>>this question is for anyone..after rising over 60 points this week how low should qcom go to find a base<<
QCOM is an excellent company and it's stock has been purchased by many here long before this week's run. However, it does seem that enthusiasm for the stock is up along with its price, with several people talking about selling other holdings to buy more Q. In that regard I think you raise an interesting question - after such a jump, what's next.
Ultimately, I'm betting that QCOM continues to go up in price, and in a long term perspective $20 or $30 does not mean much, but there is probably a pretty good chance that the stock falls that much before continuing it ascent, and I think we should be ready for that. IBD had this to say:
"The earnings and stock split, as well as bullish comments from the company, fueled a 71-point surge last week. That gain vaulted the stock out of a steep, six-month channel, raising the odds that is may be making a climax run.
JDS Uniphase shows similar action...That's not to say either will definitely roll over. But stocks are more likely to suffer major corrections following climax runs..."
Some of the net stocks had climax runs back in April, before correcting severely. Some ultimately recovered, some have not. Of course, most of those stocks do not have the substance behind them that QCOM or JDSU have.
The strength of QCOM's move this week surprised even some of its staunchest bulls, and it may well continue to surprise us with upward momentum, but it would be prudent for each of us to consider beforehand what our action will be if indeed it does begin to fall. Three possibilities come to mind:
1. Hold fast. That is most likely the smartest move.
2. Sell to avoid a paper loss and repurchase at a lower price. This rarely, if ever works.
3. Start to hold but then panic out after the stock falls. That's the choice to avoid at all costs.
In the battle for dollars, as in any battle, preparation is key.
StockHawk |
