Went Long ARM Holdings plc August 25 Near the Close

I went long ARM Holdings plc August 25 near the close for a momentum trade.  This stock has what looks like superhuman strength given the lousy bear market trend of the indices in recent months.  ARMH is a monster.

I have a protective stop just under today’s low at 15.24 and think this could get another thrust higher given its current strong momentum.  Even during the recent drop in the market ARMH went higher.  The stock has some amazing relative strength.  It has what seems to be a small head and shoulders bottom that formed after filling the recent big gap higher.

Apparently they have a big order backlog and fat profit margins from license revenue (they are in the semiconductor sector and benefiting from move to mobile gadgets and devices).

The MACD is moving into a buy signal and RSI may get a move into the power zone above the 70 range next week.  I am looking for an exit if and when ARMH can get its RSI (relative strength index between 70 and 75).

If I am right about the market bouncing higher then it might help ARMH make a new 52 week high in the weeks ahead.

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ARMH is a pretty classic uptrend and since the May 6, 2010 flash crash has never looked back. . .

Posted in Semiconductor Stocks, Stock Picks, Stock Setups
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