In the middle of last week, technology stocks seemed about to become technically broken. A lot of the stocks we follow had broken major technical support and were in danger of serious damage. As of this afternoon, the following stocks we own in the Opportunistic and Growth Portfolios turned very bullish. Each one has now cleared the 20/50/200EMAs.
Of course, it helps that the SP500 cleared the 200MA which is very bullish, but the tech sector seems ready to lead the market highers. These stocks have strong balance sheets and hence avoid any of the issues regarding debt concerns and funding. Instead they can focus on the strong growth in the developing economics and a rebound in the US.
They all have some overhead resistance and still need to prove they can clear recent tops before the all clear is sounded.
Riverbed Technology (RVBD) - strong WAN optimization company that got upgraded yesterday with a $32 target. Not a big jump from these levels but this company continues to preform at the highest level.
Apple (AAPL) - not much to say about AAPL that isn't already known. The stock is in a channel so it still needs a break to the upside above the $265-270 level. Likely to test $300 quickly after that based on targets on the street.
Terremark Worldwide (TMRK) - signed a deal with Verizon Business yesterday. Stock has been in a tight channel of lately so clearing the recent highs would be very bullish. Cloud computing continues to pick up steam so TMRK could easily catch the momentum trade.
Teradyne (TER) - very cheap stock that should be able to take advantage of the smart phone revolution. More demanding semiconducter products will quickly require their expertise.