I have the impression that momentum is over for VmWare (VMW). Head and shoulders pattern, visible on the 12 months chart, can lead stock down to mid-60s. I decided to sell part of the position. That was a great ride, position almost tripled in less than 2 years. Time to take some profits. Especially before earnings report.
I might buy shares back if price drops under 80, definitely under 70. This is a great company, leader in the cloud computing software. But right now stock looks overpriced and that H&S pattern doesn't look good.
Monday, April 11, 2011
Pepsico (PEP) is trading within 62-68 range for the last 12 months. Last 6 months range is even narrower, mostly between 64 and 66. Today stock went over 66, so discipline tells me to sell some. I will sell more over 68, and buy back below 64 and 62. Current market is not clear, it might easily go either way, but range trading works in every market. That is, while stock is in range.
Posted by Alex Filonov at 10:30 PM