Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Qualcomm Incorporated (QCOM) -- Ignore unavailable to you. Want to Upgrade?

To: estatemakr who wrote (144462)	8/23/2006 3:10:43 PM
From: GO*QCOM	Respond to of 152472

Please Ignore Post 144461.Sorry it worked for me this AM kinda like the 30 cent gas at that AM-PM.Sweet but fleeting glitch.

To: estatemakr who wrote (144462)	8/24/2006 8:04:27 AM
From: GO*QCOM	Respond to of 152472

Missing Link:The Getting's Good on Qualcomm RealMoney.com The Getting's Good on Qualcomm By Dan Fitzpatrick RealMoney.com Contributor 8/24/2006 7:36 AM EDT URL: thestreet.com This column was originally published on RealMoney on Aug. 23 at 11:00 a.m. EDT. It's being republished as a bonus for TheStreet.com readers. A lot of folks have been emailing me regarding some recent comments I made to Herb Greenberg about momentum investing, a topic he discussed yesterday on CNBC. thestreet.com One of the main points I made was that most momentum investors fail to ask the right question, and that is: "Who is left to buy this stock?" Everybody has some underlying reason for buying a stock -- even if it's nothing more than the same reflex we see in largemouth bass when they snap at a shiny object. You always have some reason for buying the stock. But if you are hardwired toward buying stocks with high momentum, you've always got to question your timing. Are you very late in the trend, or are you just catching the first wave of the advance? You'll know by looking at the chart. Compare the current price with the price of the effective base. How much higher is it? How long has the stock been moving up without a break? Is the slope of the trend accelerating to the upside? These are all questions that help you learn whether anyone with significant buying power is really behind you. If you look back and there's no one there, your trade is defining the top. That's not good. But it's still possible to trade momentum with less risk than most traders endure. It's simple -- set trailing stops. Even if you are late in the game with a questionable crowd behind you, a properly sized position combined with a rigid stop loss will decrease your risk to an acceptable level. What if you get stopped out prematurely? Well, tough. That's trading. If you feel that strongly about the stock, then buy it again. However, I guarantee that you will look back more often at the times you were stopped out and be happy for cutting your loss short than you will be regretful for not letting your profit run. If you are failing to consider who is behind you, then your attention will be diverted during those times when you are the last one in the checkout line. Let's look at some reader picks with this idea in mind. Last time we looked at Qualcomm (QCOM) was a few weeks ago, when it was at $35. I put it in the "too late to sell, but too early to buy" category. The bears took the stock down a couple of more bucks, but you can see by this high-volume reversal that we've got to recategorize the stock. From the look of this tight little congestion, Qualcomm looks like it's too early to sell, but not too late to buy. It looks to me like there are plenty of folks to buy Qualcomm -- many of whom have been selling it on the way down. If you're long from before last week's breakaway gap, you might consider putting a stop just below support to protect your gains. When Qualcomm pulls back, keep an eye on the August low -- we'll need to see a higher low if this rally is going to have any legs.