Two technical plays today—one long on a software company and a short on a retailer that has faced many challenges in the last few years.
Buy: VMWARE INC (VMW)
From Shortex Market Letter
52wk H. 82.35 52wk L. 43.25
Mkt Cap: $31.59B, P/E: 29.99, Beta: 0.69
VMWARE INC (VMW) is a provider of virtualization software; taking a stab at Cloud Computing. Launched the Cloud Foundation: a software package with IBM, Inc (IBM),
to be followed to other public cloud at a later date. In ascending mode since April ’16: (52-55) to (55-60), pressured by correction/retraction (65-62) to (62-59) to (58-55). Reversal: breakout through 50 & 200-DMA (57-60). Gapped-up (62-67). Challenged upperhead resistance @ (74-76). Volatile.
BUYING RANGE: 71-76
NR TERM OBJ: 91
INTERMED OBJ: 112
STOP LOSS: 67
Joseph Parnes, Shortex Market Letter, www.shortex.com, 800-877-6555, August 31, 2016