Don't Ignore This Chart!

There's Not Much To Like About This NASDAQ 100 Stock

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Stocks that combine poor fundamentals, technicals and seasonal weakness are probably stocks to avoid.  QUALCOMM Inc. (QCOM) is one such stock as it was hit in January with multiple lawsuits and Apple's (AAPL) suit against QCOM really damaged the QCOM chart technically.  Here's a look at the breakdown that occurred following the AAPL suit announcement:


Big volume declines like this one are typically signs of significant distribution.  Making matters worse for QCOM is the fact that we're less than a week away from beginning the worst three month historical stretch of the year.  Check out the April through June performance for QCOM:

Personally I couldn't consider QCOM as a long trading candidate until it clears its March 13th high of 59.04 with heavier than normal volume.  Even then, QCOM will have to battle historical head winds.

Happy trading!

Tom

Tom Bowley
About the author: is the Chief Market Strategist at EarningsBeats.com, where he provides stock market education, guidance, and trading strategies using a unique combination of technical, fundamental, and historical analysis. Tom provides EarningsBeats.com members with four portfolios (Model, Aggressive, Income, and Value), all designed to beat the benchmark S&P 500, and a revolving Watch List of hundreds of companies reporting strong quarterly earnings (must beat both revenue and EPS estimates) and exhibiting technical strength as well. These companies comprise EarningsBeats' annotated Strong Earnings ChartList (SECL), from which Tom trades exclusively. Tom writes a Daily Market Report (DMR) for members to include an executive summary, market outlook, sector/industry watch, and trading ideas. Learn More
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