Alert traders may have gotten some stock near $60.25 on a break above $60 and we'll follow the bullish trade from here. We'll keep an eye on the 50-period MA (thin blue) and monitor the stock if that MA is encountered. Bullish traders would have their stops at $56.88.
Bullish Percent Chart for Telephone - 2% scale.
The percentage of stock currently on a "buy signal" in the telephone group currently reads 27.5% and has this group in a "bear confirmed" status. This has us concerned, but we didn't get this reading until this morning (we get a reading once a week). If there is any type of encouragement, the above chart tells us that there has been a lot of risk taken out of the group. What is more encouraging is that while this index set a new low on November 13, the current "bullish percent" is higher than it was in early October. This tells us that Ms. Cohen and some of her friends are/have indeed been doing some select buying in the group. With favorable technicals in TWTC, that stock might be one of them. For an explanation of Bullish Percent, see the November 8th update at 01:30 EST.
EMC Stopped out!
Wow! That was fast. Our "upside alert" on our short in EMC was triggered at $87.50 and we'll book the $2 loss here. We'll make note that bad news in the group (NTAP) wasn't enough to keep this stock in check. The 50-period MA may give the stock some resistance, but with the major indexes in the green, we'll move to the sidelines and play the trend with TWTC.
EMC Corporation Chart - 60-minute interval.
Shares of EMC triggered our stop in the last 30-minutes. While a trader that is able to monitor this stock every second, it would be tempting to stay with the trade until the 50-period were broken to the upside. However, we don't have that luxury when posting updates on the hour. We'd rather take the loss and keep our credibility. We've added a horizontal level of support under today's low and this stock might pay rewards in the future. We get the feeling we were just a little early today. Keep this one on the "potentials" list (long and short).