How did I forget Terremark Worldwide (TMRK) on previous post discussing 52 week high stocks in our portfolios. TMRK is a leading investment in both the Opportunistic and Growth Portfolios. Ironically this stock hit a 52 week high back in August, then sold off big time. Whether this will be a breakout this time or eventually fail is still up for debate.
TMRK is caught up in the 'cloud computing' craze as it is a prime provide of cloud services in its data centers. Its interesting to note that Rackspace Hosting (RAX) is also breaking out today which has been unusual for these 2 stocks to trade in tandem. So much for the market trading in a herd and stock picking going out the window.
RAX on the other hand hasn't broken its high from the beginning of the year. Its a much bigger company so potentially TMRK is being seen by the market has a takeover candidate.
Both stocks and especially TMRK has become overbought and likely needs to take a break prior to advancing above $10.