AAPL PCLN CMG Relative Strength Option Plays

record_1 April 10, 2012 (Chinavestor) Apple Inc. (NASDAQ:AAPL) Breaking to new all time highs. Priceline Inc. (NASDAQ:PCLN) is also showing extreme relative strength. These are the market leaders to watch. Don't forget about Chipolte Mexican Grill (NYSE:CMG) which is also breaking to new highs.

What is relative strength? When stocks like Apple Inc. (NASDAQ:AAPL) and Priceline Inc. (NASDAQ:PCLN) go sideways to up while the broad market (S&P 500) goes down. Heads up, when the broad market starts to lift again, these three stocks are the ones to watch as they will probably go up a lot more than the rest of the market.

Option Plays: Long calls, and long leaps will provide a great ROI if these stocks continue their bullish trend. However, if you want to keep it simple - just plain old common stock will work too.

Watch out! If the market continues to pull back Amazon Inc. (NASDAQ:AMZN) has been showing relative weakness compared to the rest of the NASDAQ. This may be a possible short or in the very least a stock to stay away from for now due to weak earnings.