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Go Long on Qualcomm


All indicators favor this tech name.


Additional sell arguments were that Qualcomm is underperforming the semiconductors and NASDAQ. Again, the format from my first chart is used to compare Qualcomm against these other benchmarks. This stock is a leader, not a laggard.

Besides these studies, my firm tracks short interest, options activity and seasonality trends. Short sellers have been betting against this stock since late 2008, and clearly they haven't made money - and can be squeezed if the stock moves higher.

This potential short squeeze provides support. The Erlanger Short Intensity rank tracks the range of the short ratio (1.64) over time and currently it sits at 61%. The Erlanger Technical Rank remains strong at 90%.

This chart also looks at the Erlanger Put/Call Ratio and it is at 2.59 and climbing - which is bullish. In summary, there's excessive bearish sentiment from short interest and options activity. This should help Qualcomm stock climb a wall of worry.

Position in QCOM

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