After a sluggish start to the session, EMC Corp. (EMC) has climbed from 17.92 to an intraday high of 18.26 so far, in what my work argues to be the continuation of a new upleg off of last week's low at 17.55 within a much larger, two-year basing pattern. A very compelling feature article in Barron's has spelled out the underlying positive fundamental story in the stock.

When the intermediate technical pattern matches up with strong underlying fundamentals that are recognized and supported by the Street, we have a powerful reason to hang on to our long model portfolio position. Only a plunge that breaks last Friday's low will wreck the timing of the next upleg in EMC. For the time being, the action looks healthy.

 

Mike Paulenoff is a 26-year veteran of the financial markets and author of MPTrader.com.