My Power Options system identifies the best candidates for option trading or short-term stock trading, and this week it’s showing a mixed bag in internet stock, with some obvious winners…and some obvious losers. These names are both volatile and liquid, two important characteristics of profitable options trading.
Use the following information to help you with your own options or short-term stock trading program.
These stocks have confirmed their upward trends after a temporary pullback. Such a bounceback is one of the most reliable buy signals.
Strong but Topping
This stock was in upward trends, but has leveled after a dramatic advance. Watch for this stock to break through resistance—that will be your signal to buy.
- Atmel Corp (NASDAQ:ATML)
These stocks are in upward trends, but are temporarily leveling or pulling back.
Backing and Filling
These stocks have rallied way up from downtrends, but then dropped from those higher prices to “fill” lower price areas.
- Amazon (NASDAQ:AMZN)
These stocks are in upward trends that are temporarily leveling or pulling back. Most of the stocks in this category have the potential for a strong downtrend.
- Qualcomm (NASDAQ:QCOM)
InvestorPlace advisor Ken Trester is editor of the popular Maximum Options program. Trester has been trading options since the first exchanges opened in 1973 with a winning streak that goes back to 1984 with money-doubling average annual profits since 1990. Try Maximum Options today for 2 months for only $99.