Want to buy Qualcomm (QCOM) on this dip? Watch this first. (July 29, 2014) – THIS IS A TEST
QCOM
I want to look a Qualcomm ( NASDAQ:QCOM ) today, though it’s kind of ugly to look at, but sometimes you’ve got to go ugly and you better go early. Here’s the deal, the stock had been in this volatility squeeze for a while. They announced their earnings, they weren’t that great, and that’s why the stock did what it did. But the other issue was that they lowered their licensing outlook, they’re having issues basically with collecting their royalties over in China.
You know what’s funny about those Chinese guys? A lot of times they like to reverse engineer software and they don’t like to pay for it, it’s weird thing, I don’t know why they do that, but they do, it’s a common thing; nothing against the Chinese, just everything against the Chinese that do that. Anyway that’s a problem for Qualcomm ( NASDAQ:QCOM ) because that’s really where the big growth industry is. So the fact that they’re going to be having a tough time getting some revenues over there, whether they’re deserved or not, any of that stuff is a problem.
China is declaring Qualcomm ( NASDAQ:QCOM ) a monopoly, which actually who knows, that may be the case. But here’s the thing, you don’t have to have a monopoly on owning this thing; this stock sold off on how many shares, 36 million shares and hit the 200-day moving average within two pennies, it fell two pennies below what the 200-day moving average was last week. But now the stock is trading lower and it’s trading lower on heavier than average volume.
This is a stock that it’s not too late to sell, this could be like one of those “Thelma and Louise” stocks, the Grand Canyon, so you don’t want to be long this stock if you think it’s going to go a lot lower. If you happen to be a true believer in Qualcomm ( NASDAQ:QCOM ), fine, keep a stop underneath 75.00. If you get stopped out and you think you shouldn’t have then just decide to buy the stock back when it rises above the 200-day moving average, and it might, it may very well do that.
So what happens if you get stopped out? Well you got shaken out, you sold right at the bottom, then you bought up a couple dollars, and that’s okay. If you can’t handle getting shaken out once in a while then you shouldn’t be trading, you should be doing something else. I think selling this stock, even down, forget that it’s down from the high here, “Oh my gosh, I can’t sell down 8 percent from the high.” Well this hit a high before earnings were released, so this doesn’t really matter does it? What’s really most important is, the stock gapped down and is now down almost 3 percent below where it opened up, so there’s still selling going on; you need to be one of those guys that’s selling.
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