Check out this squeeze in Skyworks Solutions (SWKS). (February 24, 2015)
A real quick hit here, look at Skyworks Solutions ( NASDAQ:SWKS ).This is one that I’ve been covering in our Strategy Sessions each night for a while. This stock is breaking out; you’re not too late to be buying here. You see how these Bollinger Bands have been squeezing pretty tight there, nice breakout. Now they’re squeezing again, really, really tight, which reflects a very, very long period of consolidation. And so now where are we? Boom! Moving to the upside here.
Remember these guys supply parts for Apple’s iPhone, which there seems to be a few people that want to own that nice little device. And so frankly this is a heck of a stock to buy as opposed to Apple ( NASDAQ:AAPL ). I own a boatload of Apple ( NASDAQ:AAPL ) calls but right now, from a technical standpoint, as far as further upside on a percentage basis from here, from where it is right now, I’ve got to give the edge to Skyworks Solutions ( NASDAQ:SWKS ); because the uptrend is really solid, the daily chart shows a really nice compression, and now this breakout is on increasing volume.
Now, compare that with Apple ( NASDAQ:AAPL ), which has had a heck of a move, volume has generally been fairly decent, uptrend, really solid also. But look at this compared to Skyworks ( NASDAQ:SWKS ), Skyworks ( NASDAQ:SWKS ) is a little more steady. Now, lest you think that I am saying sell Apple ( NASDAQ:AAPL ) and buy Skyworks ( NASDAQ:SWKS ), Skyworks ( NASDAQ:SWKS ) is the better thing.
Well lets do this, lets hearken back to the last scene of “Trading Places”, this is just before the camera shot where Jamie Lee Curtis is on the sailboat, with a nice looking bikini on, when they’re trying to figure out whether to have lobster or cracked crab. And the butler, I forget the guys name, says, “Can’t we have both?” That’s the way it can be here; you can own Skyworks Solutions ( NASDAQ:SWKS ), you can own Apple ( NASDAQ:AAPL ), you’re not going to lose money on either one of them.
But the point of this video is just to show you the power of the squeeze, or we’ll put it another way, the power of the pop. You saw one here, you saw one here, you saw one here, not a lot here. You can see what happened but, “Hello”, this was October, everything crashed then, except the inverse ETF’s. Here finally you’re getting it again. So if you’re looking for an opportunity to buy Skyworks Solutions ( NASDAQ:SWKS ) and you don’t have a flux capacitor that can go back a couple of days this will still get the job done right here.
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