5 NASDAQ 100 Picks

Today I sorted the NASDAQ 100 Index to find the 5 with the best Barchart technical indicators and charts.  Near the top of the list were Research in Motion (RIMM), Virgin Media (VMED),  Gilead Sciences (GILD), Mylan (MYL) and Netflix (NFLX):

Research in Motion (RIMM)

Barchart technical indicators:

• 100% Barchart technical buy signal
• Trend Spotter buy signal
• Above its 20, 50 and 100 day moving averages
• 12 new highs and up 51.05% in the last month
• Relative Strength Index 80.54%
• Barchart computes a technical support level at 9.35
• Recently traded at 11.49 with a 50 day moving average of 8.05

Virgin Media (VMED)

Barchart technical indicators:

• 100% Barchart technical buy signal
• Trend Spotter buy signal
• Above its 20, 50 and 100 day moving averages
• 20 new highs and up 25.47% in the last quarter
• Relative Strength Index 71.13%
• Barchart computes  a technical support level at 33.27
• Recently traded at 34.03 with a 50 day moving average of 31.43

Gilead Sciences (GILD)

Barchart technical indicators:

• 96% Barchart technical buy signal
• Trend Spotter buy signal
• Above its 20, 50 and 100 day moving averages
• 5 new highs and up 17.27% in the last month
• Relative Strength Index 70.56%
• Recently traded at 76.17 with a 50 day moving average of 68.25

Mylan (MYL)

Barchart technical indicators:

• 96% Barchart technical buy signal
• Trend Spotter buy signal
• Above its 20, 50 and 100 day moving averages
• 10 new highs and up 14.33% in the last month
• Relative Strength Index 70.92%
• Barchart computes a technical support level at 26.03
• Recently traded at 26.380 with a 50 day moving average of 24.80

Netflix (NFLX)

Barchart technical indicators:

• 96% Barchart technical buy signal
• Trend Spotter buy signal
• Above its 20, 50 and 100 day moving averages
• 4 new highs and up 20.91% in the last month
• Relative Strength Index 66.32%
• Barchart computes a technical support level at 66.32
• Recently traded at 82.46 with a 50 day moving average of 67.78

MORE STOCK PICKS

RIMM tanks

For the last 6 months I've been advising investors to short Research in Motion ( RIMM) ans I've taken a lot of flack.  Please look at this Barchart graph of the daily trading activity over the last 6 months:

http://seekingalpha.com/article/449351-research-in-motion-can-it-be-worse

Enough said!

Research in Motion still has life

COMPLETE ARTICLE AND MORE GRAPHS

Research in Motion (RIMM) the creator of the widely popular Blackberry has fallen on some hard times lately.  At today's price it is trading at a P/E ratio of 6 in a market that is trading at a P/E ratio of 13.2.  This is a stock that in the past sold at a P/E ratio of almost 37.  The price momentum over the last 2 1/2 years on this Barchart graph says it all:

Barchart technical indicators:

• 20% Barchart short term technical buy signal
• Trend Spotter buy signal
• 8 new highs and up 22.418% in the last month
• Above its 20 and 50 day moving average but below its 100 day moving average
• Relative Strength Index 54.28%
• Barchart computes a technical support level at 28.54
• Recently traded at 30.10 which is above its 50 day moving average of 27.47

Some smaller competitors that have done very well this year are Orsus Xelent technologies (ORS) up this yeat 600%, Clearfield (CLFD) up 161%, Polycom (PLCM) up 71% and Communications Systems (JCS) up 35%

Summary:  Research in Motion (RIMM) has been a high flyer for a long time.  With its great financial strength it should survive.  If the sales and earnings projections materialize and the stock returns to a more normal P/E ratio long term investors buying in at this level could see and annual return of 35% - 39% over the next 5 years.  These projections are highly speculative, as the mixed brokerage analysts opinions reflect and have a lot of variables including an economic recovery that need to happen to get that total return. Speculate a little but don't bet the farm on this one

Jim Van Meerten is a Marketocracy Master