The naz will need to regain the potentially historic breakout line quickly for the rally to continue (I know, very complex). For longer term investors, the 50 week average can be used as your worst case stop loss. If you want to get cute, sell now as you can always get back in above the line. The lost profits can be thought of as an insurance policy against giving back a bunch of gains. The last time the 50 week MA really failed (except for twice in 2010) was the week of 1/4/08. Remember, from failed moves come fast moves as all the people who piled in expecting the breakout to hold find themselves on the loosing side of the trade. This is similar to the failed break downs in July 2010 and September 2010, the latter which led to an amazing 30% rally in what used to take 2 years or more. For more evidence, I look at the nasdaq head honchos (see below). They make of 42% of the nasdaq 100 and provide clues to what is going on.
- @doomdog144 Was out of the $slw covered call for a tad better than even 2 years ago
- $USO What a flush, guess I shouldn't have speculated on 100 shares on the close, wow 2 years ago
- Commented on StockTwits: No loss, long at 21.33, covered call position stks.co/q14ep 2 years ago
- $SLW Have zero confidence so sold the dec 22 @ .77, if she gets called, no biggie, I'll take the 1.45 2 years ago
- $GORO Got smoked on Friday, only had 300 shares but wow 2 years ago