Trading SWKS? Here’s your solution. (August 04, 2014)
I want to look at Skyworks ( NASDAQ:SWKS ); it’s kind of getting into a parabolic move here on the 50-day moving average, it’s starting to move higher. You can see this is like little stairs, this one tagged, but the others are not even getting to the 50-day moving average, so it’s kind of making this a little bit tough to buy.
What I would suggest doing though is this is just really simple, just use the 50-day moving average as your reference; hopefully you are already in this stock, if you’re not go ahead and buy some if you want to. It’s not at the greatest buy point because in buying right now what you’re saying is this box is never going to be penetrated, the stock is just going to keep going up, and up and up, and up, and it may do that.
But this is really what you’re cutting off, this part of the box right there, you’re just assuming that the stock is never going to come in here. So this is really what you’re saying, “I don’t really think that’s going to happen.” So what I would suggest doing is watch the stock, if it pulls back to 50.00, something like that’s when you want to go ahead and take this stock, go ahead and start a position. Hopefully you’re already long, and if you are long I would just say protect profits. At this point, frankly you look at this it’s kind of tough to say, well I think I’ll buy more and add to my position.
If you’ve already got a full position then you want to be the one that’s watching this to sell; different directions I know, I’m saying if you want to, I’m not telling you to, if you want to build a position you start looking for it around $50.00. If you are already long and you have a nice profit here, don’t tolerate more of a pullback than $48.00 below the 50-day moving average; those are instructions for buyers or sellers, I think they’re going to work for you.
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