Intuitive Surgical (ISRG) is one of the best performing stocks for 2011.
It is up 80% year-to-date as of 12/29.
The following weekly chart shows it launched the latest up move the
week of 8/15 and has been able to push through two resistance levels
and made a new high today (12/29) at a close of 466.03. From the
8/15 weekly close of $329.49 to today’s close of $466.03, this is a
parabolic move of 41% in four months. For the same period, the market
as represented by S&P 500 is up only 12%.
The chart also shows IRSG’s strong relative strength breakout (the
lower pane) since the week of 1/10 this year. It actually has been a
strong stock since the beginning of the year and remained so even
after the August market selloff.
The last time ISRG made a large parabolic move was between the
week of 7/6/09 and the week of 4/19/2010 (the white line on the left
of the chart). That was an increase of 155% from 7/6/09 weekly
close !
Would history repeat itself for ISRG?
One major difference between the 09 move and this year’s move
from 8/15 is the volume (the yellow on balance volume indicator).
This time the volume is not there and is not as impressive as the
09 move.
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If you are not already long ISRG, I believe the prudent thing to do is
to pay close attention to the volume actions, especially when it is
approaching its earnings release date 1/19/2012 (notice I did not
confirm this date personally and therefore it may change).
Disclosure: I hold ISRG bullish options positions and may initiate new
bullish positions in the next 72 hours.
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CMHTraders
Michael Kudrna
