COMS..bullish on that one. I do think it will go up, but perhaps not in a straight line. I sold JBL at 70 and although it did drop, a new upgrade will probably propel it higher still. The point is that Monday and Tuesday are crucial days for COMS if you are looking for a 'continuation' of the uptrend and just cash in on the 'pop'. If you are an investor or intermediate term trader, I would follow COMS as well and perhaps get in if the trend is up, or get in AFTER the report but wait until the buying pressure is over and get in when profit taking is about over.
You will be able to tell by watching the money flow chart and positive/versus negative volume.. The smart traders get in when the volume DECREASES. This is NOT the same as buying before a breakout on HIGH volume or buying AFTER a RETREAT when the stock is bouncing off its 10 or 20 or 50 day moving average. This is when to get in AFTER the stock has broken out on good news and the buying pressure dissipates, but the good news is not going anywhere (not just an unfounded rumour). There is an indicator called Negative Volume Index and if you wait until the NVI rises above its 24 day moving average, along with additional confirming indicators it could trigger another buy signal.
Although the volume is decreasing the 'contrarians' or 'smart investors/trader' are now taking up new positions...
I track all the stocks that beat and I can say that if you are an investor and you miss the initial pop, they will be ample time to get in. I've tracked stocks like VTSS, CREE, POWI, USWB, XIRC,ACTN, YHOO, XCIT, NSOL,BOBJY,QLGC,VRTS, INTV, TOM, CHCS,CMVT and now JBL, and SLR and even missing a 3-4 point gain AFTER earnings came out were virtually 'swallowed up' in the stock's excellent acceleration in the weeks following the report. In my opinion both MUEI and COMS (in both) will have some pleasant surprises in store for the immediate future. But opinions are just that, you should do your own DD.. |
