With Arista Networks (ANET) back above the 50-day moving average, where’s the trade? Well, what’s your timeframe? (February 26, 2018)


I want to look at Arista Networks ( NYSE: ANET ) here, this is why: We have this on our Growth Stock list we put it on down here on the 12th of October. This has done really well; I have talked about it, I’m pretty sure, in this Free Chart venue as well on occasion. But I want to revisit it here because the idea was you have got to take profits. This is a gap down on earnings so you have got to take profits. If you bought this when we first put it on the list you are up almost 60 percent. And by the way, it sure looks like we were late, right? And we were; it would have been great to buy it down here.

If you see a stock with potential you don’t get to go back and buy it. You just have to look for the best buying opportunity that you can find and that was this, in this little squeeze. So you are in the stock, the stock finally comes up to this point. Earnings are right around the corner, you have to take profits on that. Maybe you took them all. Maybe you took some off the table. Or maybe you are not in this stock at all now and you are wondering, “What the heck am I going to do?”

Okay, a couple of questions. First of all, how long do you want to hold the stock? That is not really stock dependent as much as it is dependent on what you typically do in your trading. Are you a trader or are you an investor? You have to decide what you are doing here. If you are an investor this is your time frame right here. This isn’t it. You look at this here, this is a great opportunity to buy this stock with about a 9 percent stop or so on it; then you are in the stock and you continue to hope that it prints higher lows and higher highs.

But if you are more of a swing trader type this is what you have to understand: It is where it is right here at $260.00 but it was here above $300.00 not too very long ago. So this is a real steep sell-off that this has had. I think it is going to take a while for this stock to recapture the high and move higher. So if you are an investor I would say this: Go ahead and start buying the stock here. If you are a trader I don’t really think that you need to be in a hurry to buy the stock. It will probably move higher here; I could see it maybe one more day but it has got a lot of resistance ahead of it.

So you just really want to wait and see how high this moves before supply comes in and squats on the stock a little bit and gives you some sense that this is actually support versus a shot across the bough where the stock ultimately starts rolling down here. So investors go ahead and go for it. Traders, wait for a little more evidence that this support is going to hold.

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