With all the focus on the FANG stocks, it's worth noting that while Facebook (FB) and Google (GOOGL) ¿ which are held in the Action Alerts PLUS portfolio co-managed by Jim Cramer ¿ and Amazon (AMZN) -- held in the Growth Seeker portfolio -- are still trading beneath their five-day and eight-day exponential moving averages, Netflix (NFLX) is on the verge of a meaningful breakout. A push above $115 on NFLX should be expected to generate significant excitement among momentum-oriented traders.
I haven't paid much attention to the coal sector over the past year, but after several inquiries on Peabody Energy Corp (BTU) I thought I'd take a second look. Before we consider whether a buying opportunity may be at hand in BTU, let's not forget that every bounce in the stock since early March 2011 has ultimately been a selling opportunity.
With the above in mind, a close above $15.75 would amount to a new (albeit very short term) swing high, as well as make the late-October break to new swing lows look like a bear trap. The bottom line is I only want to consider BTU for a long trade above $15.75, because when the higher timeframe trend is taken into consideration, there's simply no logical reason to consider buying the stock on weakness.
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