STEC (STEC) – 06-23-2009
STEC is a hot tech company that makes solid state drives. You definitely want to avoid this if you’re not an active trader, but it looks like it will have some nice swings to the upside and downside in the near future. A fairly strong company by the numbers that carries no debt, the explosion this year was well founded and came at a good time to be amplified by the general bullish market conditions. Increasingly powerful breakouts look like they may lead to a classic bump and run pattern. While a company may stay fundamentally strong during a reversal, sometimes stocks just get too overbought to sustain the momentum.
My play on this one is just to enter it manually as a prescreened stock into my auto trader. If I were manually trading it, I would be waiting for the reversal since we’ve already passed the point that I would feel comfortable trying to swing trade to the upside. Of course a stock this strong should also be put in the watch list for later on as a bullish position to take after a good correction and base.
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