Investment Tips

Trade: Broadcom (Ticker: BRCM)

November 4, 2010 Jon Johnson Investment Tips No Comments

EARNINGS: 10/26/2010 after the close
STATUS: Breakaway gap. BRCM announced earnings last week and bolted higher with a strong, high volume gap. The gap took BRCM over its July peak. Gap, strong volume, through resistance. All the elements are in place. One of our favorite earnings place are these breakaway gaps because they tend to continue running in the direction of the gap. BRCM tested modestly this week, moving laterally in a tight range. Wednesday BRCM started back to the upside, and it looks as if BRCM is ready to continue its gap move. Looking to move in as BRCM continues upside, still riding the strong earnings and momentum from the gap.

Click here for a Video of the BRCM trade.

Volume: 7.452M Avg Volume: 10.047M
BUY POINT: $41.68 Volume=12M Target=$47.97 Stop=$39.07
POSITION: BRCM 11B40.00 – Feb. $40c (62 delta) &/or Stock

From: Jon Johnson’s IH Alert Service

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Written by Jon Johnson

In 1998, InvestmentHouse.com teamed up with Chief Market Strategist Jon Johnson. Subsequently, InvestmentHouse.com began publishing the Stock Split Report, Technical Trader Report, The Daily and the IH Alert service. Mr. Johnson has been a guest on CNBC-TV, Bloomberg TV, Houston's 650 Business Radio and his newsletters have been featured in various financial articles, including articles in the Washington Post, Chicago Sun, The Wall Street Journal's Smart Money Magazine, Bloomberg, Kiplinger Personal Finance Magazine, Houston Chronicle, Business Week, Money Magazine and other news magazines. Mr. Johnson's Stock Split Report was featured in Forbes.com's Best of The Web online edition.

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