Trading Implications of Intel’s Recent Outperformance

This is an excerpt from an article I originally published on Seeking Alpha on November 27, 2011. Click here to read the entire piece.)

So much for putting recession fears in the rearview mirror. On October 28, I pointed to 3-year highs for Intel (INTC) as another bullish indicator among many (see “A Very Bullish Sign: Intel Breaks Out To Three-Year Highs“). These signs motivated me to project a higher trading range for the S&P 500 to close out the year. Indicators turned bearish once the S&P 500 closed below its 50-day moving average (DMA) and have worsened ever since. So, it is time to take another quick look at INTC.

{snip}


Intel has moved swiftly off its 3-year highs
Intel has moved swiftly off its 3-year highs

Source: FreeStockCharts.com

Interestingly enough, the recent out-performance is a dramatic turn-around for INTC. {snip}


Intel has out-performed the NASDAQ since April
Intel has out-performed the NASDAQ since April

Source: Stockcharts.com

Given this chart, I am assuming INTC’s out-performance versus the NASDAQ is coming to an end. {snip}

I am much more interested in the eventual opportunity for buying INTC. {snip}

I am targeting $22 as my first entry point. I will determine additional buying points as conditions unfold. {snip}

Be careful out there!

This is an excerpt from an article I originally published on Seeking Alpha on November 27, 2011. Click here to read the entire piece.)

Full disclosure: no positions

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