Friday, December 21, 2012

3D: Watching for a Double Top on Stratasys (SSYS)

Yesterday the stock hit its all-time high price of $79.45. This slightly exceeded the previous record of $79.25 set on Nov. 29. Although the usual double top pattern is for the second peak to be a few cents lower than the first the order can be reversed.

Here's the 3-month chart via Yahoo, $77.80 down 1.80%, last.
Chart forStratasys Inc. (SSYS)

On the other hand, stocks making new highs are one of my favorite trades (duh) because there is no overhead supply from folks "waiting to get back to even".
Plus the momentum anomaly, real if unexplained, see: 
"Momentum, rational agents and efficient markets"