Defensive Telcom Play - BSFT

With the Power Gauge ratio at one of its lowest points of the year, and market technicals looking weak we're being cautious about new trend-following trades.  A sector that's suddenly gotten hot over the past few months is Telcom, and today we're adding Broadcom to the Chaikin Power User Portfolio.  Here's why we like it: 

• Strong sector, strong industry group and strong fundaments (Very Bullish Power Gauge)
• Money Flow positive for the last several months, indicating institutional accumulation
• The market agrees with the Power Gauge, and relative strength is also positive.
• Oscialltor Oversold and an Oversold Buy signal today indicates a lower-risk entry point. 

We'll set our stop at 2 ATR below the Chaikin Trend and will consider getting out before earnings on May 4th. 

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