Louise Yamada's storied tenure on Wall Street means she's doing something right, and when she's naming names and potential new market leaders, it's worth paying close attention.
During an interview on Breakout with Jeff Macke and Matt Nesto, Yamada, the managing director of Louise Yamada Technical Research Advisors and lyadvisors.com, pointed out a number of stocks that are showing favorable technicals and could be worth further study for investors. Among them are EMC (EMC), Altera (ALTR), GE (GE), Cenovus Energy (CVE), Suncor (SU) and Imperial Oil (IMO).
"Technology has made a structural advance," she says, explaining her interest in the likes of EMC and Altera. While the sector has long been defined by Apple (AAPL) and Google (GOOG), she cautions investors to "watch your support level" on those two. For Apple, she says that's $325, and for Google it's $550.
Yamada stresses that her firm is not a registered investment adviser, and that she isn't offering recommendations, but is instead looking at stocks whose charts could warrant further investigation.
Other strong technical performers of late include AmerisourceBergen (ABC), Smucker (SJM) and Estee Lauder (EL). Those aren't exactly the names that come up frequently in discussions of where you want to be, so coming from Yamada that should serve as a powerful confirmation that opportunities in the market can be found beyond the daily headline stocks.
Caterpillar (CAT) has been another star -- a "dynamo," as Yamada puts it -- but after its run, expecting the heavy equipment maker to keep it up might be a tall order. With that being the case, she recommends keeping an eye on support levels and protecting any profits by raising your trailing stops.
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