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It’s no secret that we’ve been socked with snow this past week.
During that time, I was flipping through channels and came across Jim
Cramer’s show Mad Money. I’ve said this before, Jim is a great
entertainer. I am not so sure how good he is at picking stocks.
He mentioned shorting one stock, Garmin (symbol GRMN). What he said
about Garmin sort of made sense to me both from a technical and
fundamental viewpoint.
So here is the fundamental viewpoint… Many of the new phones that
are coming to market are referred to as “smart phones” and have the
same capabilities as a standalone, turn-by-turn GPS. In my own case, I
have an Apple iPhone. I was looking for a navigational application in
the App Store and found exactly what I needed and the good news was -
it was free, that’s right free. So the question is, why would anyone
pay $150, $200, or even $300 to Garmin to have one of their systems?
Fundamentally, I think his case is very sound.
Then, I looked at the technical picture for Garmin and noticed that
we had a red monthly “Trade Triangle” sell signal some time ago
(November 4th to be exact at the price point $27.06). So here we are
some three to four months later having Jim Cramer tell us that Garmin
may be a short.
For my money, I want to be trading the “Trade Triangles” and not listening to Jim Cramer and getting old news.
In this short video on Garmin, you will see exactly what were
looking at and where the signals kick in. I also point out where one
very important technical indicator is at a tipping point.
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I hope you enjoy the video and make a comment on the blog about how you feel about this market. Click here to watch today's free video.
All the best,
Adam Hewison
President, INO.com
Co-creator, MarketClub |
