Technology is beginning to reassert itself once again. Not that it ever left as it is in the top 3 S&P top performing sectors on a one week, one, three and six month timeframes. Today we examine a top IT play which has advanced more than 200% since going public in July ’13. It advanced 16% between the 3 weeks ending between 2/3-17 and this is an example of being FLEXIBLE in your approach if circumstances change. Here we look at CDK and a name we were previously bearish on, which we now have to be open to a different outlook. Directly below is how we looked at CDW in our Wednesday 1/11 Game Plan.
Stocks that can be bought as they touch their rising 50 day SMAs for first time since recent breakouts are CDW. CDW is an IT play UNCH YTD and higher by 32% over the last one year period and sports a dividend yield of 1.2%. Earnings have been mostly higher with gains of 3.7, 6 and .3% on 8/3, 5/4 and 2/9 and a recent loss of 2.9% on 11/2. The stock is down 3 of last 4 weeks on tepid trade however, and did so after completing a bearish evening star pattern on 12/9 at all time highs (stock has risen more than 180% since inception in summer of ’13). CDW has registered solid action POST breakout from a cup base trigger of 47.60 on 11/14 on almost double average daily volume. Enter near initial touch of 50 day SMA at 51.25.