Having sold our VZ position on 8/1 spike (thank you $KCG.) our read of the techncials suggested a break of the $40 mark. But we respect the trend so added a tranche on the confirmation of the move above $45.89 and now the move above $46.41.
We all know that 10/1 spike on some charts is nothing but a fake pin... but no matter. On the chart it reads like a crack of the $46.41 and provides overhead cover for PPS to move ahead.
Basically, our read is now that $VZ should see wind at its back in q4 given long term investors will be rotating their long term holdings to lock in lower cap gains and harvesting tax losses from names like $HPQ. As the dividend is attractive and in a much hyped space... well, the trend is your friend.
We don't like the near end of the charts so much. But when the fact change, we change our mind (yet keep tight stops).