Sorry!! The article you are trying to read is not available now.

Watching for Another Leg into ARUN. Will FFIV Trigger a Move in ARUN?

Print comment Post Comments
I've been pinging a "Demark" disciple and he and I both like Aruba Networks (ARUN) here. I'm more in the fundamental camp as even in the tepid IT spending environment, the BYOD (bring your own device) movement is still quite powerful. I also like my own TA's here as the stock has held pretty darn well in a risk off move of the last 2 weeks, where many other names got hit hard. One of the things I look for on a name like this (a name to make a big move off lows and then partially retraces), is to look at the daily and 1 & 2 Hour MACD lines. These hourly MACD's are firming and look poised to cross back above the Zero line while the longer term daily MACD is still positive but descending. If the daily MACD turns and and the lines cross, this is what I call a positive cross in positive territory and these are the most powerful MACD moves on the bullish side. Again, this is early but that is what I try to do here. Find the signs early, watch for them and be ready to act.

And generally I will try and preempt the daily MACD move by using a number of intraday signals.

I'm more inclined to pick this one off on the occasional weak day and/or if we see F5 Networks (FFIV) start trading like and earnings "beater" I think it's going to be for the next couple quarters. FFIV for it's part has a similar chart, but it's more oversold and the daily MACD went firmly negative. Even so, the same pattern could emerge, but of the two (ARUN and FFIV) I think ARUN could move to its recent highs well before FFIV does.

To read the full post and more commentary from Sean, take a FREE 14-day trial to the TechStrat Report
POSITION:  Position in ARUN, FFIV.