MNST continued the rebound from Wednesday and soared to $34.16 Thursday morning on heavy volume. That was enough to push the stock into our profit target range of $34-36. We remain bullish on the stock but shares look a little short-term overbought. We're going to close the play now that our target has been achieved but those willing to hold it may want to seriously consider raising their stop loss.
The semiconductor sector and the SOX index have reached a pivotal turning point. The four-month up trend is bullish but the short-term consolidation of lower highs is bearish. The consolidation has narrowed to the point that a breakout one way or the other is inevitable. This recent weakness and lack of participation in the broader market rally led us to raise our stop loss in QLGC to $34.95 a few days ago. Shares of QLGC hit our stop on Wednesday and the stock continues to look vulnerable to more weakness.
