Strugglers And Consolidators
A few of our high RS breakout stocks
are showing signs of struggling a bit at the highs, a sign that partial
profit-taking might be in line for the intermediate-term trader. Meanwhile,
others are consolidating nicely on low volume.
The former include Metro One
Telecommunications
(
MTON |
Quote |
Chart |
News |
PowerRating) and Pharmaceutical Product Development
(
PPDI |
Quote |
Chart |
News |
PowerRating).
Neither case shows heavy distribution. If you don’t have a light trigger finger,
you can stay on for the ride, but you should be eyeballing where you want your
trailing stop, particularly if you are not inclined to take full or half
profits.
In contrast, note the volume dry-up in
Columbia Sportswear
(
COLM |
Quote |
Chart |
News |
PowerRating) and Atlantic Coast Airlines
(
ACAI |
Quote |
Chart |
News |
PowerRating). This
tends to be constructive as this is a sign that shareholders are sitting tight
and content at current share prices.
Among the exchange-traded funds, the
tech-focused ETFs again led a down market lower. The Internet Infrastructure
HOLDR
(
IIH |
Quote |
Chart |
News |
PowerRating) shed 4.8%, the Broadband HOLDR
(
BDH |
Quote |
Chart |
News |
PowerRating) 3.9%, the Software
HOLDR
(
SWH |
Quote |
Chart |
News |
PowerRating) 3.6%, the Semiconductor HOLDR
(
SMH |
Quote |
Chart |
News |
PowerRating) 3.3%, the Dow Jones
Technology iShares
(
IYW |
Quote |
Chart |
News |
PowerRating) 3.2%, the Nasdaq Biotechnology iShares
(
IBB |
Quote |
Chart |
News |
PowerRating)
3.0%, the Biotech HOLDR
(
BBH |
Quote |
Chart |
News |
PowerRating) 2.9%, the Dow Jones Internet iShares
(
IYV |
Quote |
Chart |
News |
PowerRating)
2.7%.
Remember that all securities are risky. In any new
trade, reduce your risk by limiting your position size and setting a protective
price stop where you will sell your new buy or cover your short in case the
market turns against you. For an introduction to combining price stops with
position sizing, see my lesson, Risky
Business.
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