Last night on stockspotter I received a signal to exit a long position of Skyworks Solution (SWKS). The exit recommendation was sent after 5 days of the entry signal and earned -.25%. I should mention that the sum profit of all the recommended exits for the day was about 12.5%. I’m only blogging about this slightly losing trade because many people follow the stock and may be able to gain insight from a further technical and fundamental analysis.
This exit comes at an interesting time considering that shares of Skyworks jumped as much as 11% today, after the company reaffirmed its quarterly guidance. Now, considering that the company expects to reach a $2-per-share earnings rate by the September quarter. I think that gives shares plenty of upside at the current price of $25.20.
So why did Stockspotter recommend exiting this position? It’s because Stockspotter is a trading system that detects the dominant cycle of daily price fluctuations before advancing to buy on cycle troughs and sell on crests. No fundamental analysis is ever performed and all the signals are for short term swing trades.
Additional Company Info: Skyworks Solutions, Inc., together with its subsidiaries, offers analog and mixed signal semiconductors worldwide. The company provides power amplifiers and front-end solutions for cellular devices from entry level to multimedia platforms and smart phones.