Let’s take a walk in the clouds with a trade on VMWare (VMW). (November 16, 2016)
GKYY KME GKYY VMW
Lets look at the Cloud Computing Index Fund ( NASDAQ:SKYY ); a little bit lower than average for liquidity for and ETF but you know what? It works. Here is the thing: A lot of stocks in the market are really overbought. A lot of the ETFs are really overbought. Ultimately, probably moving higher. Think about for example the XME ( NYSEARCA:XME ), big move out of a squeeze, peaking now, probably due for a rest. On the other hand this one hasn’t really made much of a move. I am not talking about trading SKYY ( NASDAQ:SKYY ) here. I am talking about looking at this as a starting place and thinking, “Well, if this is like this then I wonder what stocks might actually be ready to work here?”
There are actually several of them, but the one I want to talk about, right here, is VMWare ( NYSE:VMW ). The stock popped out of a volatility squeeze, trading, with a support level now at 75.00 prior resistance, right? And now the stock looks like it is ABOUT ready to squirt out the upside. The intraday high here is 79.15. I am going to go ahead and put an alert on my software, I want to see it, 79.15. So if this stock starts trading higher than 79.15 know that the cloud computing stocks are fairly strong, you can see that in the ETF chart. But also, VMWare ( NYSE:VMW ) has been in a nice uptrend for quite a while. Nice long sideways consolidation. Breakout, another consolidation. Wait for the breakout here. Boom! There’s your trade.
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