Tough markets this year. Tough to make money. Grinding up capital.
Nevertheless, here’s a stock we bought today on a range breakout. Qihoo Technology is the top stock in the IBD 50 and has been trading in a $23 range since October. It broke out of the range today and with confirmation and some follow through sets up a measured move to $119.
The recent hire of John Liu as Chief Business Officer enhances the story in our book. Liu headed up Google’s China operations and before that at SK Telecom.
Speaking of Google, note how Qihoo has been tracking Google over the past few months. It will be interesting to watch Qihoo tomorrow with Google up over $40 dollars in after hours on the back of their earnings release. Stay tuned.
Qihoo is volatile, we could be wrong, the breakout could be a head fake, and it was hard to pull the trigger. But it made sense given the stock’s IBD rank and following not to mention the long period of consolidating gains. Always with a stop, folks.
(click here if charts are not observable)