Monday, May 24, 2010

Momentum trading

Sprint caught a couple of upgrades today and the market took the stock up pretty quickly. The last couple of weeks when the market was getting beaten down by the bears, Sprint refused to go down. These are very positive sign in terms of trading on momentum.

As noted earlier Sprint seems to be everywhere these days with advertising. They seem to have got all the products they needed to get out there with a comprehensive story and they have been blanketing the media with ads touting those products. This helps analysts and pundits build a bull case for a stock.

None of these are fundamental reasons for buying Sprint. But such market trends, where a certain stock resists being beaten down my the general market followed by some upgrades generally is an ominous sign of a break out. It generally means that somebody big believes the story. So if you are looking for speculation you might have just found it.

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