SWING Trader's Watchlist: SIMO Long; Buying for a swing. Details to follow.
02-Mar-12 SWING Trader's Watchlist: SIMO Follow Up -Update SIMO recently beat and raised. It's just clicking on all cylinders. With so many stocks launching higher off of earnings misses it was kind of shocking to see this strong performer sell down so hard, but it's already had a tremendous run and there are competitive concerns surrounding the company. But any stock that advances by nearly 150% primarily while the market is in a correction has my interest. SIMO has corrected about 30% off its peak, about what you'd expect to see from a true leader when it consolidates its gains. Talk about the failure of failure, yesterday price pushed once again to another lower low, but look what happened. It bounced back, closed high of day and on a bump of volume to boot. Let's be clear. This stock is now completing its 4th week of consolidation and will probably need at least another 3 to get back to its old highs, if indeed it's going there. But we are taking a position in this stock on the chart action that indicates the lows of the pattern may well have been put into place yesterday.
SWING Trader's Watchlist: SIMO Long; Buying for a swing. Details to follow