Don’t Let Your Gains in This Winner Evaporate

Sanmina (SANM) — This company provides integrated electronics manufacturing services to original equipment manufacturers (OEMs).

On Sept. 23, with the stock at $22.63, I recommended selling it short saying, “Technically SANM broke down from an intermediate trendline that began in April, as well as its 50-day moving average. There is no evidence of a high-volume selling climax, i.e., bottom, and MACD is very bearish. It appears the selling could continue until support is reached at its former breakout price of $18.

On Friday, SANM broke through its 200-day moving average, falling 14% to just over $17, on what could be a selling climax. Therefore, I now recommend buying shares to cover for a nearly 25% profit in just three weeks.

The stock may continue lower, but let someone else ride it down. As they say, “Bulls make money, bears make money, pigs get slaughtered.”

SANM Chart
Click to Enlarge

Chart Key


Article printed from InvestorPlace Media, https://investorplace.com/2014/10/trade-day-sanmina-sanm-2/.

©2021 InvestorPlace Media, LLC